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0 pointsvidarh1y ago0 comments

Alcohol is so expensive as a choice with broad political support in Norway. Yes, Norwegians like to whine about it, and go to Sweden or Denmark to avoid it, yet Norwegians also keep voting for the parties (almost all) that agree with keeping alcohol taxes high.

Rent is high in large parts because average incomes are high. This is one of the effects of a relatively flat income structure. As someone earning far above average, I'm better off in the UK, while someone on a job below the top ~10% or so would probably have a higher standard of living in Norway.

Not having things run 24/7 is annoying, but a factor of being a country with one of the lowest population densities in the world.

> They were against the socialist government trying to rip them off with a completely unfair taxation.

Nobody forced them to start their businesses. The wealth tax is not new, and has remained in place through both left- and right-wing governments, thought with some swings back and forth in rates.

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Aeolun1y ago

Everyone starts a company with the idea it may never apply to them, so why worry about it before it becomes a problem.

Of course, with the leaving tax, they may just move abroad before doing anything.

vidarhOP1y ago

It was not that it didn't apply to me. I've had shareholdings in Norwegian companies worth well over the deductible several times. The point is that it isn't a problem in practice as long as you're aware of it and plan accordingly. Yes, if you start a company in Norway without a liquid market for your shares, and without understanding the tax implications, you might end up having a bad time of it. If you spend an hour talking to an accountant beforehand, it's just a minor extra cost of doing business.

E.g. at a $10m valuation you'll end up paying <$90k wealth tax after rebates. If your company is valued enough that your shares are worth $10m, you can finance a $90k loan either directly or via your company, and bake it into your funding rounds. Yes, it's an extra drag on your business, but from first-hand experience, preparing for this just isn't a big deal in most instances.

You don't have to like it, and people are free to whine about it, but in reality it's a problem only if you don't know what you're doing.

Aeolun1y ago

> You don't have to like it, and people are free to whine about it, but in reality it's a problem only if you don't know what you're doing.

Maybe? Or maybe it's just a PITA that most people don't want to deal with? It's not nice when you company is doing well, and your reward is having to pay a bunch of extra taxes and deal with financing all that somehow.

At least, I find paying income/value-added tax a lot more palatable, since it's always over money you just received, not money you have to conjure into existence somehow.

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HPsquared1y ago

In accounting terms I guess the tax burden just decreases the NPV of all assets.

j / k navigate · click thread line to collapse

0 pointsvidarh1y ago0 comments

Not having things run 24/7 is annoying, but a factor of being a country with one of the lowest population densities in the world.

> They were against the socialist government trying to rip them off with a completely unfair taxation.

Nobody forced them to start their businesses. The wealth tax is not new, and has remained in place through both left- and right-wing governments, thought with some swings back and forth in rates.

0 comments

Aeolun1y ago

Everyone starts a company with the idea it may never apply to them, so why worry about it before it becomes a problem.

Of course, with the leaving tax, they may just move abroad before doing anything.

vidarhOP1y ago

You don't have to like it, and people are free to whine about it, but in reality it's a problem only if you don't know what you're doing.

Aeolun1y ago

> You don't have to like it, and people are free to whine about it, but in reality it's a problem only if you don't know what you're doing.

At least, I find paying income/value-added tax a lot more palatable, since it's always over money you just received, not money you have to conjure into existence somehow.

1 more reply

HPsquared1y ago

In accounting terms I guess the tax burden just decreases the NPV of all assets.

j / k navigate · click thread line to collapse