Tim Worstall reports on the results of a Norwegian initiative to encourage taxpayers who felt their taxes should be higher to voluntarily pay more:
It is a standard contention of our times that people really would love to pay more tax. The things they get in return from government are so wondrous that obviously everyone will be emptying their wallets to feed the diversity advisers. Norway tried this — they managed to raise an extra $1,325 in tax revenues.
That’s not bad, $1,325 per capita in additional tax revenues multiplied by the Norwegian taxpaying population is … oh, you mean that was the total amount?
This does not bode well for the general contention, does it?
What we have here is of course that classic economists’ point, the difference between expressed preferences and revealed ones. We’ll all say all sorts of things but the correct guide to what we really want is to watch what we do. Which isn’t, even in Norway in any large manner, pay more tax:
Hammered by the opposition for slashing taxes and going on a spending spree with the country’s oil money, the center-right government has hit back with a bold proposal: voluntary contributions.
Launched in June, the initiative has received a lukewarm reception, with the equivalent of just $1,325 in extra revenue being collected so far, according to the Finance Ministry.
It is possible to cavil about this a bit. It’s all rather new for example.
The program was decried as a political distraction from the left-of-center opposition party, who said that if the government was really serious about making up for recent revenue shortfalls then it would go after multinational companies like Google and Facebook. Launched only this past June, the opposition has argued that the scheme already costs more than it makes.
Well, yes, they would say that too. Quite clearly everyone prefers it to be that person over there getting taxed, not little ol’ me.
You don’t have to be Norwegian to take advantage of this wonderful offer to give the government more than your share: that option has been available to Canadians for many years. Her Majesty, in right of Canada, would be happy to accept any amount you wish to donate. As Tim points out in the article, the US and UK governments also accept gifts in excess of tax owed.
