Norway votes in tight election over wealth tax, coalition talks loom

Norwegians voted on Monday in a tightly contested parliamentary election dominated by debate over a centuryold wealth tax, with results expected Tuesday and weeks of coalition talks to follow. The vote pits the centreleft bloc led by Prime Minister Jonas Gahr Støre and the Labour Party against a rightwing opposition anchored by the populist Progress Party and the Conservatives, and about 4.3 million people were eligible to cast ballots in the race for 169 Storting seats.

At the heart of the campaign is Norway's wealth tax, in place since 1892. The levy applies at up to 1.1 percent on net assets and shares above 1.76 million kroner, with various deductions for debt and property. Labour says abolishing the tax would cost roughly 34 billion kroner a year, about $3.3 billion, and argues the revenue is vital to preserving Norway's extensive welfare state and reducing inequality. The Conservatives want the tax reduced, while the Progress Party calls for its complete repeal.

Progress Party leader Sylvi Listhaug argues the tax penalises entrepreneurs who hold valuable but illiquid stakes in companies and discourages investment. "The money paid in wealth tax could have been spent...