So, how much higher are taxes in Norway? We looked at Davor Sutija's 2009 income tax return—available, like all tax returns in Norway, on the Internet—and calculated a rough estimate for what he would have paid if he lived in the U.S. The CEO of Oslo-based Thinfilm isn't rich enough to be touched by Norway's 1.1 percent wealth tax, but he still paid far more in taxes in Norway than he would have in America, even if he lived in a high-tax state like Massachusetts. Leonard Levine, a C.P.A. in Boca Raton, Florida, and Martin Wikborg, a tax attorney in Ernst & Young's Oslo office, helped us with the calculations.

  Oslo Massachusetts Florida
Gross salary $537,000 $537,000 $537,000
Income after deductions $501,000
$516,000 for state tax
$453,000 for federal tax
$479,000
Payroll taxes National insurance, employee contribution, 7.8% of gross: $42,000 Social Security (6.2% of first $106,800): $6,600; Medicare (1.45%): $7,800
Income tax

Income tax (28% flat rate): $140,000

Surtax (9% on income above $76,000; 12% on income above $124,000): $54,000

Federal income tax (progressive, up to 35%): $136,000

State tax (5.3% flat rate): $27,000

$138,000

 

No state tax

Total income tax bill $236,000
$177,000
$152,000
Effective income tax rate 43.9%
33%
28.3%