Oh no! Tax revolt in Norway, prized welfare state

Tax revolts can grow from the ground up even in Norway, the "model" welfare state. Norway is on the wrong side of the Laffer Curve.

Norwegians are among the most heavily taxed people in the world, and that in turn has made Norway one of the most expensive countries in which to live. Most accept the taxes they're ordered to pay on income and even net worth and property, but growing numbers are publicly complaining about sky-high taxes on everything from cars to fuel to consumer goods.

Norwegians differentiate between skatter (taxes) and avgifter (duties, fees or user taxes) and the latter is the most hated. They're what causes a glass of house wine at an Oslo restaurant to cost the equivalent of nearly USD 16, or a gallon of gas to cost nearly USD 9 at current exchange rates.

"It's clear that taxes are much too high in oil-rich Norway," Oslo resident Gro Pettersen told newspaper Aftenposten. "It's sick!"

The taxes placed on new cars, which can more than double the price of the car itself, are another bone of contention, even though most Norwegians support measures to protect the environment. "The car tax is much too high, but so are most all the other avgifter also," said Ernst Bendiksen of the northern city of Vadsø, where Norwegians are far more dependent on their cars than those living in cities with good public transit systems. "We certainly don't get anything in return for them."