Connect with us

Business

Norway’s Trainwreck – How Taxing Unrealized Gains Has Caused an Entrepreneurial Exodus

Published

15 minute read

From hagaet the substack of Fredrik Haga, co-founder of Dune

Norway Shrugged 

Recently, my story as a Norwegian entrepreneur facing an unrealized gains wealth tax bill many ties higher than my net income went viral, amassing over 100 million views on X. A few years ago I publicly called out that this tax is both impossible-to-pay and nonsensical, but no politician would listen. So I made the difficult decision to leave my home country. I still don’t know how I was supposed to pay the tax, but I recently found myself plastered on the “Wall of Shame” at the Socialist Left Party’s offices.

In this post, I’ll delve into why there’s an entrepreneurial exodus from Norway, how we got here, and what the future might hold.

Socialist Left leader and me on the “Wall of Shame” (Dagbladet)

Norway: A real life Atlas Shrugged 

Ayn Rand’s 1957 novel Atlas Shrugged paints a vivid picture of a dystopian society where government overreach and socialist policies kill innovation and demonize entrepreneurs. In Rand’s world, working hard and taking risks is not celebrated, but looked at with suspicion. As the government tightens its grip, mandating how businesses should operate, the nation’s entrepreneurs begin to vanish and are nowhere to be found. People get poorer while the state keeps growing. Step by step the functioning of society starts to crumble. The trains first go off schedule, then start crashing and eventually stop going all together.

Present-day Norway mirrors this dystopia in unsettling ways. Taking risk with your own money, working hard and then making a profit is frowned upon. While politicians spending the people’s money on non-viable green projects, and delivering dysfunctional public services at high costs has the moral high ground. The government is spending 35 Billion NOK on offshore wind that industry experts think is financially unviable. This is about the same amount as the total wealth tax revenues. Norway spends 45% more than Sweden on health care per capita with approximately the same health outcomes. Norway has 2,5 times bigger share of the working population on sick leave than Denmark. Norway spends ~50% more than Finland on primary and secondary school with worse results.

With unshakeable ideological conviction, socialist politicians are rapidly undermining Norway’s wealth creation. They’re imposing taxes that explicitly disadvantage Norwegian business owners, and are often straight up impossible to pay. When confronted with the reality that you can’t pay taxes with money you don’t have—or that loss-making businesses can’t afford massive dividends just to cover owners’ wealth taxes—the response is vague moralism like “Those with the broadest shoulders must bear the heaviest burdens.” Any argument against any part of the system is by default invalid because there’s free health care…

Norway’s entrepreneurs are now indeed disappearing from society. In the past two years alone, a staggering 100 of Norway’s top 400 taxpayers, representing about 50% of that group’s wealth, have fled the country to protect their businesses.

Norwegian trains have for a long time been notoriously unreliable – even less reliable then in war time Ukraine! In chilling similarity to Atlas Shrugged there’ve been two train crashes, including one fatal, in the last month alone.

Tram crashing into a retail store in Oslo 29th of October 2024 (NRK)

The Unrealized Gains Wealth Tax: A Self-Inflicted Wound

Norway imposes a wealth tax that taxes unrealized gains at approximately 1% annually. Calculated on the full market value for publicly traded assets and the book value of private companies. On New Year’s Eve, whatever your net worth – including illiquid assets – is subject to this tax. It doesn’t matter if you’re running a loss-making startup with no cash flow, if your investments have tanked after the valuation date, or even if your company has gone bankrupt—you still owe the tax.

This creates a perverse scenario where business owners must extract dividends or sell shares every year just to cover their tax bill. With dividend and capital gains taxes at around 38%, you need to withdraw approximately 1.6 million NOK to pay a 1 million NOK wealth tax bill. You’re essentially paying taxes to pay taxes, draining capital from your business without any personal financial gain.

Moreover, the tax incentivizes Norwegians to take on excessive debt to reduce their taxable wealth, inflating housing prices and making the economy more fragile. While real estate and oil companies can mitigate this through debt financing, tech startups—often equity-financed and loss-making for years—are disproportionately harmed.

The Berlin Wall Exit Tax: Another Tax on Unrealized Gains

After witnessing a mass exodus of top taxpayers, the Norwegian government had a golden opportunity to reassess its policies. The wealth tax contributes less than 2% to the state budget; eliminating it and marginally increasing capital gains, corporate, or dividend taxes could have halted the entrepreneurial bleeding without affecting government budgets.

Instead, the government doubled down on what’s not working, introducing an exit tax on unrealized gains. Now, if you choose to move from Norway, you’re immediately liable to pay 38% of the total market value of your assets upon departure. It doesn’t matter if you have no liquidity, if your assets are high-risk and could plummet in value, or even if your company does fail after you leave—you still owe the tax. Previously, entrepreneurs could at least relocate if the wealth tax became too burdensome. Now, they’re incentivized to leave before they even start their businesses.

The government could have listened to the tornado of negative feedback and adjusted course, but instead, they doubled down on what’s not working. When the Berlin wall was created it was clear which side of the city had the better system… the one that didn’t have to build a wall to retain its citizens. Instead of trying to attract and retrain capital and talent by making Norway a better place for business the Norwegian government chose to build its very own Berlin Tax Wall with yet another tax on unrealized gains. Trapping not only entrepreneurs, but anyone with more than $270k of wealth wanting to move their life abroad for whatever reason…

The first 50 years: Well Managed Oil Wealth 

Norway is one of the richest countries in the world. The government does not need to send their entrepreneurs abroad with non-sensical taxes. So you may ask yourself, “Well, how did we get here?”.

In fact, the oil wealth has been amazingly well managed by the politicians for almost half a century. In 1969, Norway struck oil—a discovery that could have led to the same resource curse that plagued other nations. Instead, Norwegian politicians made two genius decisions that benefited the entire population.

  1. Genius Move 1: Taxing Oil Profits at 80%Recognizing the need for foreign expertise but unwilling to let international corporations reap all the benefits, Norway taxed oil company profits at a staggering 80%. This bold move ensured that the wealth generated from the oil benefited the Norwegian people.
  2. Genius Move 2: Establishing the Sovereign Wealth FundIn the 1990s, Norwegian politicians understood that oil is a finite volatile resource and that it would be irresponsible to spend all the oil revenue on a running basis. In an act of rare political austerity and long term thinking they created the Oil Fund, to diversify and invest surplus revenues internationally. Furthermore the “Budgetary Rule” limited annual government spending from the fund to 3%, ensuring the fund in theory goes on forever.

For two decades, politicians across the spectrum adhered to this prudent financial management, displaying an impressive level of restraint and foresight rarely seen in politics.

How Oil Wealth Led to Socialist Ideology over Wealth Creation

But success bred complacency. In theory, everybody agrees that Norway needs new post-oil industries for the long term. In practice, the abundance of oil wealth has led to a detachment from the realities of how wealth and economic growth is created. While the Norwegian politicians impressively managed to restrain themselves for about half a century the current generation are now acting as if tax money grows on trees.

Ultimately that is the paradox that has caused the current situation: because the state has so much money, it is no longer at the mercy of businesses actually being created and staying in Norway. At least as long as the oil wealth lasts.

The 2025 Election: No Fundamental Solution in Sight

It seems likely there will be a new government after the 2025 elections, as the current government is seeing record-low support in the polls. Unfortunately, even seemingly business friendly opposition parties like the Conservative Party (Høyre) and the Liberals (Venstre) are not committed to abolishing the wealth tax entirely. They propose valuing companies zero for wealth tax purposes—a good step in the right direction, but not a fundamental solution to Norway’s ongoing crisis. Unfortunately The Progress Party (Fremskrittspartiet) is the only party that wants to remove the tax completely.

The wealth tax’s mere existence continues to create absurd incentives for excessive debt and over-investment in housing, detracting from more productive investments like stocks and startups. Moreover, the possibility of future governments reinstating the wealth tax for companies keeps the harmful uncertainty for businesses very much alive.

Many European countries have recognized the harm caused by taxing unrealized gains and abandoned it. Norway’s neighbor Sweden abolished its wealth tax in 2007. Since then they’ve seen its tech sector flourish. Spotify recently surpassed Norway’s state-owned oil company, Equinor, in market capitalization. In the last 15 years Norway has gone from having 7 to now only 2 of the Nordics top 30 most valuable companies.

Norway has produced four “unicorns”. Since then we the founders of Dune and Cognite have left due to the unreasonable taxes. Oda operates domestically in Norway. All founders have left the company and are wiped out. The last one Gelato is run by a swede that would likely move if they need to raise more money.

The Extra Long Journey to Post-Oil Wealth and Welfare

In Atlas Shrugged, the entrepreneurs refuse to return to society until the oppressive system collapses entirely. I sincerely hope Norway doesn’t have to endure such a downfall before entrepreneurs can return.

Fortunately Norway has a highly educated population and a lot of capital. With oil a high tech industry has been built in Norway before. What’s lacking is the political will to encourage entrepreneurship and big ambitions, not punish it.

Trust is built in millimeters and torn down in meters. In just a few years, the trust in Norway as a viable place to build and invest has been shattered. A whole generation of entrepreneurs has been lost.

The people of Norway currently enjoy and benefit from a host of generous welfare benefits. High income with short work days, free healthcare, free daycare, free education and beyond. For this to continue in the future Norway needs massive new post-oil industries. Due to the politicians’ series of unforced errors, the journey to get there will be extra long and painful. A definitive abolishment of all taxes on unrealized capital gains is the obvious first step.

 

highlight
Subscribe to hagaetc and never miss a post.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Business

Blacked-Out Democracy: The Stellantis Deal Ottawa Won’t Show Its Own MPs

Published on

The Opposition with Dan Knight

Dan Knight's avatar Dan Knight

This isn’t just bureaucracy. This is a culture. A culture where global corporations and senior officials act as partners managing public information, while Parliament and citizens are treated like security risks to be managed.

Bureaucrats hid key terms of a $15-billion deal, blamed “confidentiality,” and Stellantis couldn’t even get its internet working to face MPs.

The most powerful people in Canada’s federal bureaucracy walked into a parliamentary committee this week and calmly admitted something that should make every taxpayer’s blood run cold:

When Parliament ordered them to hand over an unredacted copy of a multibillion-dollar contract with Stellantis, they didn’t obey Parliament.

They obeyed Stellantis.

This was the Standing Committee on Government Operations and Estimates (OGGO), meeting on the government’s response to a motion demanding the contracts between Canada and Stellantis for the Brampton Assembly plant. What unfolded over roughly two hours was not just a hearing. It was a live demonstration of who actually runs this country’s industrial policy: not elected MPs, not citizens, but a cozy alliance of bureaucrats and a global automaker hiding behind a black marker and a “confidentiality clause.”

And just to put a bow on the contempt: Stellantis itself didn’t even show up. We were told they had “IT issues.”

A company that builds electric vehicles and advanced manufacturing platforms apparently can’t figure out how to join a parliamentary Zoom call.

Sure.


From the start, Deputy Minister Philip Jennings of Industry Canada came in with one objective: defend the redactions.

His opening remarks were drenched in the usual Ottawa flattery. He told MPs their oversight role was “vital,” that accountability “maintains public trust,” that transparency is “important.” All the right words. Then he immediately pivoted to why they had blacked out chunks of the Stellantis–Brampton contribution agreement and why MPs, and by extension Canadians, should accept it.

He warned that some information is “commercially confidential,” that releasing it could cause “significant damage” in a “highly competitive” auto sector. He lumped in aerospace, AI, and other “knowledge-based sectors” just in case anyone missed the buzzwords. If companies couldn’t trust Ottawa to keep secrets, he said, future deals might be at risk.

So the stage was set: democracy on one side, “commercial sensitivity” on the other.

Jennings made it clear where his department chose to stand.


Conservative MP Kyle Seeback was one of the first to cut through the spin. He had actually read the documents. That’s already more than can be said for half of Ottawa on most days.

Seeback pointed out that another Strategic Innovation Fund agreement, number 810819553, had already been released under access to information and is now posted publicly on CBC’s website. That contract, same program, similar format, came out with limited redactions.

Meanwhile, the Stellantis agreement at issue – 813816251, which covers the Brampton deal – is being guarded like a state secret. Jennings insisted MPs could only see it in camera, with redactions, under strict rules: no phones, no recording devices, no notes leaving the room.

Seeback essentially asked the obvious: why is a journalist with an ATIP request allowed to see more than Parliament?

If a media outlet can obtain a contribution agreement and post it online for the entire world to download, how can the government stand there and claim that another, nearly identical contract is too sensitive for elected MPs to even discuss openly?

Jennings had no coherent answer. He kept repeating that he was only there to talk about “this” contract, that this particular agreement has “commercially confidential” elements that must be protected, that they were following a “balanced” approach used in past parliaments.

It didn’t wash. Seeback hammered the absurd logic:

Either the whole contract is commercially confidential, or it isn’t. The department itself had only redacted specific parts. It admitted that the entire document is not some sacred secret. Yet Jennings still insisted Parliament can only discuss it behind closed doors, while an access-to-information process might eventually dribble out the same text with similar or fewer black bars.

In other words: under this department’s logic, an ATIP officer and a CBC editor end up with more practical freedom to handle these documents than Canada’s elected representatives.

If that doesn’t tell you who this system was built to serve, nothing will.


Subscribe to The Opposition with Dan Knight .

For the full experience, upgrade your subscription.

It got worse.

Conservative MP Jeremy Patzer went right at the heart of the matter: who actually wielded the metaphorical Sharpie?

“Are you the one responsible for the redactions?” he asked Jennings.

“No,” said the Deputy Minister.

So who was?

Jennings admitted that his team had “direct discussions with Stellantis.” Ultimately, he said, Stellantis had to agree to what they were “willing to have” shared with the committee, even in camera. The company insisted the documents only be shared in closed doors, and that condition shaped what MPs received and how they could view it.

Let that sink in: Parliament ordered unredacted documents. Stellantis told the department what it was “willing” to allow Parliament to see. The department complied.

Patzer reminded Jennings that OGGO had passed a motion for fully unredacted documents and that previous committees in earlier Parliaments had managed to view contracts in camera without this kind of corporate veto. He asked what gave the department the authority to ignore Parliament’s order.

Jennings invoked clause 16.1 of the contract, a confidentiality provision. He claimed Canada had a “contractual obligation” to protect Stellantis’ information and that he didn’t want to “breach the contract.”

So Patzer turned to the law clerk.

Does clause 16.1 supersede Parliament?

The law clerk’s answer was blunt: no. Confidentiality clauses do not override Parliament’s power to compel documents. The same way they don’t trump a court order.

There it was, spelled out on the record: nothing in the contract legally prevented the department from giving MPs exactly what they asked for. The cover-up was a choice.


Bloc Québécois MP Marie-Hélène Gaudreau cut through the legal fog with the kind of language normal people understand.

“Who’s the boss?” she asked. “Is it democracy, is it the government, or is it the company?”

She reminded everyone that MPs were elected to oversee public money – not to sit politely while a multinational corporation decides which parts of a taxpayer-funded contract Parliament is allowed to see. She recalled the WE Charity affair, when MPs were forced to review sensitive documents in a locked-down room with no phones, no staff, no notes. That was considered acceptable and workable then. Why not now?

She pressed Jennings on why he had never even asked Stellantis if the full contract could be shared in camera. He admitted they didn’t raise that option with the company at all.

So Parliament asked for everything. The department didn’t even test the limits of what the corporate partner might accept. It simply defaulted to the company’s comfort zone.

Later, as Stellantis continued to “struggle” with its connection, Gaudreau’s frustration boiled over. She stated plainly that a corporation of this size, working at the cutting edge of EV technology, claiming to have internet issues for over an hour was unbelievable. She asked the clerk what the committee could do. The answer: they can summon the company. If Stellantis ignores a summons, it can be referred to the House as a breach of privilege.

Gaudreau ended one of her interventions with a warning directly into the microphone: “Stellantis, if you’re listening to me, we’re waiting for you. If not, we will summon you.”

They were listening. They just weren’t coming.


The sheer number of absurd redactions was another scandal inside the scandal.

Seeback pointed out that provincial funding “envelopes” were partially blacked out. The total dollar figures were visible, but the specific provincial programs providing money were removed – even though those programs are already public and appear in provincial budgets and estimates.

How is the name of an existing public program “commercially sensitive”?

No answer that wasn’t insulting.

Whole schedules of work – the detailed project plans that are supposed to be the core accountability tool in a multi-billion-dollar deal – were fully blacked out. Every word. Conservative MP Tamara Jansen called that out as creating “the appearance of a deliberate cover-up.” No one watching needed a law degree to see she was right.

Conservative MP Vincent Niel Ho drilled into section 6.35, the part that details Stellantis’ legally binding R&D commitments in Canada. Those are the supposed returns on this enormous “investment” of taxpayer cash: research, innovation, jobs.

The exact R&D dollar amounts in that section?

Redacted.

So Canadians are told this deal will bring R&D investment. They’re told the commitments are legally binding. But the specific figures – the actual numbers that might allow someone to test whether the deal is remotely fair – are hidden. Meanwhile the boilerplate legal clauses, the governing law, the confidentiality language, all of that remains neatly visible.

When Ho asked why, Jennings refused to discuss the specifics in public, citing the company’s conditions. When pressed, he fell back again on the contract: under its terms, he said, Canada must consult Stellantis on any disclosure and treat information as confidential “unless the company is willing to share it.”

The interests of the Canadian public never seem to get that kind of deference.


Then there was the question of how many people inside government have actually seen this sacred, unredacted agreement that Parliament apparently cannot be trusted with.

Jennings acknowledged that only a small group at the department had read the full contract: the negotiation team, a few program officers, a couple of finance people. He estimated maybe four to six people beyond those sitting at the witness table. That makes perhaps eight to ten in total.

Notably absent from that list: the current minister. Jennings admitted she has not seen the fully unredacted contract, and that he himself hasn’t either. The agreement was negotiated under his predecessor, he said, and he “did not need to know.”

The Privy Council Office? Also likely in the dark. The law clerk? No. Parliament? Absolutely not.

So here is the structure: a tiny inner circle of unelected officials and their counterparts at Stellantis have full knowledge of how billions of public dollars are being deployed. The minister gets briefed selectively. The Prime Minister’s department isn’t fully looped in. Parliament is handed a blacked-out version and told to be grateful.

If that isn’t the definition of the swamp, what is?


Subscribe to The Opposition with Dan Knight .

For the full experience, upgrade your subscription.

The Liberal MPs on the committee did their best to provide cover without looking like they were providing cover.

Jenna Sudds, Karim Bardizzi, Vince Gasparro, Tim Watchorn, and Iqra Khalid all, in different ways, repeated the same talking points: the Strategic Innovation Fund is a great program; Canada is competing with the U.S. and Mexico; other jurisdictions also keep their deals secret; confidentiality is “standard”; and we must protect a vague thing called “competitiveness” or risk losing future investments.

Gasparro, in particular, leaned heavily into the foreign-investment argument. He asked whether other advanced economies would publish contracts like this. Jennings said that “by and large” they would not, and even went so far as to say that having less information in the public domain can be “a comparative advantage” for Canada.

So secrecy isn’t just tolerated. It is defended as a strategic tool.

What none of the Liberal MPs wanted to confront head-on was the core fact: Parliament ordered unredacted documents, and the department decided to obey a corporate confidentiality preference instead.

They expressed frustration that Stellantis wasn’t there. They lamented the move of Jeep Compass production to the United States. They talked about workers and communities. But when it came time to challenge the bureaucracy on why a private company was allowed to dictate what Parliament could see, their questions magically softened into process inquiries and philosophical musings about trust.


If you strip away the jargon and the procedural dance, this committee hearing revealed something very simple and very ugly.

A multinational corporation signed a contract with the Government of Canada for a massive subsidy deal.

That contract contained a confidentiality clause.

Parliament, the supposed supreme body in our constitutional system, ordered that contract to be produced without redactions.

The senior bureaucrat responsible for the file admitted:

He did not even ask the company if it would allow a full in-camera disclosure to MPs.

He let the company decide what was “commercially confidential.”

He allowed the company to set the conditions under which Parliament could see even a redacted version.

He invoked a contract clause that the law clerk plainly stated does not and cannot override Parliament’s powers.

He claimed he was trying to “balance” interests, but every time the balance had to be struck, it tilted toward Stellantis and away from transparency.

And while all of this was being dissected in real time, Stellantis itself allegedly couldn’t get on a video call.

Canadians were told to believe that a company sophisticated enough to negotiate billions in subsidies, design electric vehicle platforms, and build advanced manufacturing facilities somehow hit the one technological barrier it just couldn’t overcome: logging into a parliamentary committee.

This isn’t just bureaucracy. This is a culture. A culture where global corporations and senior officials act as partners managing public information, while Parliament and citizens are treated like security risks to be managed.

It is not an accident that the entire schedule of work is blacked out. It is not a fluke that R&D commitments are hidden. It is not a coincidence that the law clerk had to remind everyone that Parliament outranks a boilerplate confidentiality clause.

This is the system functioning exactly as it was built: to shield the details of massive public-private deals from the people paying for them, while everyone involved talks earnestly about “trust.”

Trust, in this case, has a very specific meaning: trust the bureaucrats, trust the company, trust the process.

Just don’t trust yourself with the truth.

Subscribe to The Opposition with Dan Knight .

For the full experience, upgrade your subscription.

Continue Reading

Artificial Intelligence

Google denies scanning users’ email and attachments with its AI software

Published on

From LifeSiteNews

By Charles Richards

Google claims that multiple media reports are misleading and that nothing has changed with its service.

Tech giant Google is claiming that reports earlier this week released by multiple major media outlets are false and that it is not using emails and attachments to emails for its new Gemini AI software.

Fox News, Breitbart, and other outlets published stories this week instructing readers on how to “stop Google AI from scanning your Gmail.”

“Google shared a new update on Nov. 5, confirming that Gemini Deep Research can now use context from your Gmail, Drive and Chat,” Fox reported. “This allows the AI to pull information from your messages, attachments and stored files to support your research.”

Breitbart likewise said that “Google has quietly started accessing Gmail users’ private emails and attachments to train its AI models, requiring manual opt-out to avoid participation.”

Breitbart pointed to a press release issued by Malwarebytes that said the company made the changed without users knowing.

After the backlash, Google issued a response.

“These reports are misleading – we have not changed anyone’s settings. Gmail Smart Features have existed for many years, and we do not use your Gmail content for training our Gemini AI model. Lastly, we are always transparent and clear if we make changes to our terms of service and policies,” a company spokesman told ZDNET reporter Lance Whitney.

Malwarebytes has since updated its blog post to now say they “contributed to a perfect storm of misunderstanding” in their initial reporting, adding that their claim “doesn’t appear to be” true.

But the blog has also admitted that Google “does scan email content to power its own ‘smart features,’ such as spam filtering, categorization, and writing suggestions. But this is part of how Gmail normally works and isn’t the same as training Google’s generative AI models.”

“I think the most alarming thing that we saw was the regular organized stream of communication between the FBI, the Department of Homeland Security, and the largest tech companies in the country,” journalist Matt Taibbi told the U.S. Congress in December 2023 during a hearing focused on how Twitter was working hand in glove with the agency to censor users and feed the government information.

If you use Google and would like to turn off your “smart features,” click here to visit the Malwarebytes blog to be guided through the process with images. Otherwise, you can follow these five steps courtesy of Unilad Tech.

  • Open Gmail on Desktop and press the cog icon in the top right to open the settings
  • Select the ‘Smart Features’ setting in the ‘General’ section
  • Turn off the ‘Turn on smart features in Gmail, Chat, and Meet’
  • Find the Google Workplace smart features section and opt to manage the smart feature settings
  • Switch off ‘Smart features in Google Workspace’ and ‘Smart features in other Google products’

On November 11, a class action lawsuit was filed against Google in the U.S. District Court for the Northern District of California. The case alleges that Google violated the state’s Invasion of Privacy Act by discreetly activating Gemini AI to scan Gmail, Google Chat, and Google Meet messages in October 2025 without notifying users or seeking their consent.

Continue Reading

Trending

X