Debate, Wealth tax | We need more wealthy people – not fewer

Recently it became known that the political majority in Asker municipality is considering cutting the municipal part of the property tax.

This created a new wave of debate about the tax level and arrangement, and something that engages far beyond Asker.

I will leave the political tax debate to others. But what often surprises me in these debates is the misconception about who the wealthy are and the lack of understanding about why it is important to preserve and develop wealth in Norway.

My colleagues and I talk daily to wealthy individuals and families in the areas around Drammen, Asker and Kongsberg.

These are mainly enterprising women and men with a strong commitment to the society of which they are a part.

Our experience is that very many are business owners who are aware of a local social responsibility when it comes to preserving and creating more jobs, but also as important contributors to local sports teams and cultural life.

Just look at the list of partners of the Church’s Bymission, Strømsgodset or other local social actors.

Historically, we have also seen that several people have contributed as investors to new growth companies in the region, so that new jobs and value can be created.

As advisers, we have noticed a change in mood over time. A higher level of interest and uncertainty about future framework conditions, where tax is an important element, increasingly affects the willingness and ability to invest both in one’s own company and in start-up companies.

Quite simply because uncertainty about future costs, such as the changing framework conditions entail, means that investments that would otherwise be wise are held back.

These are mainly enterprising women and men with a strong commitment to the society of which they are a part.

We also see the unrest at national level. We at Formue, who are advisers to many thousands of wealthy private individuals, families and foundations across the country, last summer asked 600 of our customers about their attitudes after the debate on tax and framework conditions.

Over 60 per cent answered that changes and uncertainty surrounding framework conditions have affected planned investments in the next 1–2 years to a large or very large extent.

Even more worrying: Over 35 per cent say they will invest less in their own company than planned, and over 30 per cent that they will invest less in start-ups.

Just over a year has passed since we carried out that survey, but the feedback we receive from customers indicates that the situation is by no means improving – quite the opposite.

We need more, not less, willingness to take risks and make the conditions right for business owners all over the country. We must ensure that assets are preserved and developed locally.

It is crucial to reverse the uncertain and wait-and-see attitude that now prevails. If not, there will be less capital for start-up companies, for investment in growth, adaptation to the green shift and for important local social actors.

We also fear that family businesses will be sold to foreign owners.

Then in the future there will be fewer and not more local business owners. We all lose out on that.