Part 3/7:
This scenario is not unique to this entrepreneur; many Norwegian business owners are grappling with the reality of being taxed on unrealized wealth. The concept of taxing unrealized gains—profits on assets that have not yet been sold—has emerged as a contentious policy both in Norway and around the world. Comparatively, similar proposals have gained traction in other countries, including the U.S., where taxing unrealized capital gains was suggested as a revenue measure.
Such taxation can create significant financial strain, particularly for entrepreneurs who reinvest their earnings into their businesses rather than taking large salaries. The policy goes against the conventional understanding of capital gains taxation, which typically only applies to realized profits.