OECD Economic Surveys: Norway 2012
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OECD Economic Surveys: Norway 2012

OECD's 2012 Economic Survey of Norway examines recent economic developments, policies and prospects, and includes more detailed analyses of value for money in public spending and capital tax reform.
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Date de publication :
15 fév 2012
DOI :
10.1787/eco_surveys-nor-2012-en
 
Chapitre
 

Tax reform in Norway

A focus on capital taxation You do not have access to this content

Anglais
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Auteur(s):
OCDE
Pages :
67–99
DOI :
10.1787/eco_surveys-nor-2012-5-en

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Norway’s dual income tax system achieves high levels of revenue collection and income redistribution, without overly undermining economic performance and while paying attention to environmental externalities. It treats capital and labour income in different ways: capital income is taxed at a single low rate, while labour income is taxed at progressive rates. However, effective tax rates on savings vary widely across asset classes. The favourable treatment of owner-occupied housing relative to financial savings should be reduced, preferably by taxing imputed rents at the standard 28% statutory rate. The wealth tax implies very high effective tax rates on savings, indicating that it either gives rise to tax avoidance or significantly inhibits growth. The government should investigate the issue and, if the growthequity trade-off is too unfavourable to growth, phase out or lower the wealth tax. To restrain tax avoidance by the wealthy, the base of the gift and inheritance tax should be broadened. Overall, the reform package recommended in this chapter would improve the allocation of capital and increase work and investment incentives. It could be designed to be broadly neutral in regard to income redistribution and public revenue.
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