Norwegians are voting in a general election on Monday, with the future of the country’s century-old wealth tax dominating the campaign among other issues.
There is expected to be a close outcome between the centre-left bloc led by the Labour Party of Prime Minister Jonas Gahr Støre, Norway’s leader for the past four years, and a right-wing bloc. Voting at polling places got underway Sunday and would run through Monday.
At stake is the social welfare regime, which other European countries have emulated as a comprehensive, universal model that provides tax-funded, publicly accessible services, including healthcare, free education, and income support.
The ruling centre-left bloc, led by Prime Minister Jonas Gahr Støre, wants to keep the tax to combat inequality. But the opposition on the right argues it harms entrepreneurs and is calling for it to be scrapped.
The debate has been fuelled by social media, inspiring many younger voters to oppose the tax. More than 4 million people are eligible to vote and some 310,000 young people are eligible for the first time, and voters with immigrant backgrounds account for 11.5% of the electorate.
Official results will be announced on Tuesday, expected to be followed by weeks of coalition talks.
A levy of up to 1.1% on high assets
The wealth tax is a levy of up to 1.1% on assets and shares worth more than 1.76 million kroner (around €150,000), though there are various reductions and discounts, for instance, taking account of debt and property. Labour says that scrapping it would cost 34 billion kroner (€2.8 billion) per year.
The Progress Party, which leads the right-wing coalition, is calling for the wealth tax to be abolished, arguing that it is detrimental to the economy. Party leader Sylvie Listhaug argues that it penalises entrepreneurs who might have taxable stakes in valuable companies, but little real income.