Norwegian left presents alternative budget. Billions of kroner in new taxes planned

On Friday, 6 November, budget negotiations are set to begin in the Storting between the so-called red-green parties (the centre, the left and the centre-left). Taxes may be one of the most difficult topics of discussion, as SV wants to increase state revenue while shifting more of the tax burden towards those with the largest fortunes. The party also announces tax relief. It wants to allocate NOK 10 billion to tax cuts for people earning less than NOK 800,000 per year.

SV’s financial policy spokesperson, Marthe Hammer, announced that the largest additional burden would apply to people with the greatest fortunes. The party wants to increase revenue from the wealth tax by NOK 16 billion, arguing that the additional funds should be allocated to public services and increased employment in social services. Hammer also pointed to growing wealth inequality. In her view, the current level of the wealth tax has not been shown to harm investment.

On NRK’s programme “Politisk kvarter”, host Bjørn Myklebust asked where the limit lies for further increases in this tax. He noted that if a NOK 16 billion increase is not expected to harm investment, the question arises as to why SV is not proposing an even larger increase. Hammer replied that the party considers the current level reasonable for one year. She also stressed that the alternative budget must be feasible to implement as early as next year.

In the officially presented draft of SV’s alternative budget, total tax increases amount to NOK 32 billion. The figure also includes new levies on the fish farming industry, expected to raise NOK 3.5 billion, and on the financial sector, amounting to NOK 3.7 billion. This extends the scope of the changes beyond the wealth tax alone. At the same time, the party maintains its proposal for tax relief for people with lower incomes.

SV also wants to completely remove electricity subsidies for owners of holiday homes. The proposal is part of a broader plan to shift some expenses and burdens between different groups of taxpayers. Hammer argued on NRK that the party’s priority is greater redistribution and funding for public services. However, the final shape of the changes will depend on the outcome of negotiations between the red-green parties.

The dispute over the level of taxation is beginning even before the actual budget talks. SV enters the negotiations with a ready-made package of changes affecting both people with the largest fortunes and specific industries. On Friday, it will become clear which of these proposals will gain the support of the other parties.