The Laffer Curve, made famous by supply-side economic policy in the 1980s, is alive and well. It shows that higher taxes can reduce tax receipts if enough people stop engaging in the activity that is being taxed. In this case, that activity is owning wealth in Norway. Like all tax implementations, it's complicated, but it seems that various increases in tax rates on the wealth of the super rich has led to their exodus.
The recent wealth tax increase in Norway was expected to bring in an additional $146M in yearly tax revenue.
Instead, individuals worth $54B left the country, leading to a lost $594M in yearly wealth tax revenue.
Switzerland looks to gain from this wealth flight.
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