Epsilon Archive for Student Projects

Abstract

In this thesis, I examine how the 2022 increase in the Norwegian wealth tax levy affected aggregate tax revenue. The analysis employs a differences-in-differences approach with two-way fixed effects using publicly available macroeconomic panel data spanning from 1995 to 2024. The model is estimated using three different dependent variables: total tax revenue, tax revenue from corporations, and, income and wealth tax revenue. The results are statistically insignificant, meaning that the null-hypothesis cannot be rejected. The point estimates show a small decrease in total tax revenue of -0.192 pp, a small increase of 0.524 pp on revenue from income and wealth taxation, as well as, a small decrease in the revenue from corporation taxes of -0.126 pp. This paper differentiates itself from previous research by using aggregate data rather than individual-level observations, implying that small effects are to be expected. The findings, although insignificant, show some directional similarities with previous research.