Post by Sapphire Capital on Jul 22, 2008 1:55:19 GMT 4
Public may back higher taxes
July 21, 2008
There's long been a saying in Norway that Norwegians "pay their taxes with joy." It's rooted in their national obligation to support the social welfare state, but political discontent has raised questions about just how joyful they are these days. A new survey suggests Finance Minister Kristin Halvorsen needn't worry too much.
The survey seems to have surprised the organization that conducted it, none other than the national tax payers' association Skattebetalerforeningen.
"It's incredible how much tax people will tolerate when they're used to high tax levels," commented the organization's leader, Jon Stordrange. He still doesn't think Norwegians' willingness to pay high taxes is universal.
"There hasn't been any marked change in the public view on income taxes," Stordrange noted. "No one responded that income tax is too low."
The survey indicated, though, that Norwegians are more willing to pay their taxes and user fees now than they were two years ago. As many as three of 10 persons questioned think Norway's punitive tax on tobacco, for example, is too low.
The tobacco tax was the "most liked" of all Norwegian taxes, with 28 percent responding that it was too low. When the survey was conducted in 2006, 36 percent claimed it was too high. That sank to just 26 percent this year.
There also were reductions in a variety of other taxes deemed too high: 53 percent of the public thought tax on alcoholic beverages was too high in 2006, compared to 37 percent today. Sixty-one percent thought Norway's VAT (25 percent) was too high two years ago. Today 50 percent think so.
The most-hated tax in Norway remains that on new cars, which can amount to more than 100 percent of the price of the car, and on the gasoline that allows them to run. While 76 percent of Norwegians thought the tax on cars was too high in 2006, "only" 69 percent think it's too high today.
Other taxes that remain unpopular are those on real estate transactions (2.4 percent of the price of a new house or apartment), inheritance and real estate itself.
Rising disenchantment with Norway's left-centre government coalition -- which recently raised fuel taxes just as fuel prices were hitting record levels -- has clearly worried ruling politicians. The opposition parties are already enticing voters with promises of tax relief.
With the survey suggesting less opposition to Norway's existing taxes, Finance Minister Kristin Halvorsen may breathe easier. National elections loom next fall, though, and she has indicated some "understanding" for Norwegians' existing tax burdens, while hinting that the government probably won't initiate many more tax hikes.
July 21, 2008
There's long been a saying in Norway that Norwegians "pay their taxes with joy." It's rooted in their national obligation to support the social welfare state, but political discontent has raised questions about just how joyful they are these days. A new survey suggests Finance Minister Kristin Halvorsen needn't worry too much.
The survey seems to have surprised the organization that conducted it, none other than the national tax payers' association Skattebetalerforeningen.
"It's incredible how much tax people will tolerate when they're used to high tax levels," commented the organization's leader, Jon Stordrange. He still doesn't think Norwegians' willingness to pay high taxes is universal.
"There hasn't been any marked change in the public view on income taxes," Stordrange noted. "No one responded that income tax is too low."
The survey indicated, though, that Norwegians are more willing to pay their taxes and user fees now than they were two years ago. As many as three of 10 persons questioned think Norway's punitive tax on tobacco, for example, is too low.
The tobacco tax was the "most liked" of all Norwegian taxes, with 28 percent responding that it was too low. When the survey was conducted in 2006, 36 percent claimed it was too high. That sank to just 26 percent this year.
There also were reductions in a variety of other taxes deemed too high: 53 percent of the public thought tax on alcoholic beverages was too high in 2006, compared to 37 percent today. Sixty-one percent thought Norway's VAT (25 percent) was too high two years ago. Today 50 percent think so.
The most-hated tax in Norway remains that on new cars, which can amount to more than 100 percent of the price of the car, and on the gasoline that allows them to run. While 76 percent of Norwegians thought the tax on cars was too high in 2006, "only" 69 percent think it's too high today.
Other taxes that remain unpopular are those on real estate transactions (2.4 percent of the price of a new house or apartment), inheritance and real estate itself.
Rising disenchantment with Norway's left-centre government coalition -- which recently raised fuel taxes just as fuel prices were hitting record levels -- has clearly worried ruling politicians. The opposition parties are already enticing voters with promises of tax relief.
With the survey suggesting less opposition to Norway's existing taxes, Finance Minister Kristin Halvorsen may breathe easier. National elections loom next fall, though, and she has indicated some "understanding" for Norwegians' existing tax burdens, while hinting that the government probably won't initiate many more tax hikes.