Comparing Tax Rates in the U.S. and Norway
BY Inc. staff
We compare the income tax paid by an entrepreneur in Norway with what an American counterpart would have paid.
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.
Income after deductions
$516,000 for state tax $453,000 for federal tax
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 (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