The Norwegian Støre government (Labour + Centre) took office in 2021 and quickly raised the wealth tax. The top rate climbed to 1.1 %, and valuation rules for shares and properties were tightened.

The result? A sharp increase in wealthy Norwegians leaving the country. Analyses from Civita, Finansavisen and others show that the expected extra revenue never materialised. Instead, the state lost hundreds of millions – possibly up to a billion NOK annually – from the very group they wanted to tax more.

Overall wealth tax revenue did rise thanks to a broad base, but for the mobile rich the policy became a net loss.

Now Sweden is heading down the same road.

The opposition (S, MP and V) are promising higher taxes on ISK ahead of the 2026 election. The Social Democrats want to raise the rate above roughly 3 million SEK. The Greens and Left Party want to slash the tax-free allowance dramatically and add new restrictions.

More than 4 million Swedes – including teachers, nurses, warehouse workers and ordinary families – currently save in ISK. The average balance is around 600,000–650,000 SEK.

If ISK becomes less attractive, many will simply move their money to ordinary brokerage accounts. In those accounts the state gets zero annual flat-rate tax – only 30 % capital gains tax when (and if) people actually sell.

Just like in Norway, the behavioural response could make the whole policy counterproductive: lower long-term tax revenue, less capital formation, and weaker funding for the welfare state.

As someone who actually saves in ISK and pays taxes, I find it almost impressive how consistently the Left manages to design policies that punish exactly the behaviour they claim to want more of.

They want people to save and take responsibility — but not too much.
Because if ordinary Swedes become financially independent, who will they tax then?

---

This is a new post on the new dewlar.me blog.
You can find the old blog here:https://mrsdewlar.blogspot.com

---