OSLO – On Monday, Norwegians participated in the primary voting day to elect a new parliament, with the future of a longstanding wealth tax from the late 1800s being a key discussion point during the election campaign.

Approximately 4.3 million individuals in Norway are eligible to vote for the 169 seats in the parliament, known as the Storting. The election is predicted to be closely contested between a center-left coalition led by the Labor Party, headed by Prime Minister Jonas Gahr Støre, and a right-wing faction.

The official election results are anticipated on Tuesday, after which negotiations to form a coalition and decide on Cabinet roles are expected to take place over several weeks, prior to King Harald appointing a new government.

Regardless of the outcome, a significant shift in Norway’s foreign policy is not anticipated. As a steadfast NATO ally and strong advocate for Ukraine in its conflict with Russia, Norway maintains a strategic Arctic frontier with Russia. Although not an EU member, Norway has significant economic relations with the EU’s 27 nations.

Ranked among the wealthiest nations globally, Norway boasts a generous welfare system, substantial reserves of oil and gas, and a sovereign wealth fund valued at roughly 20 trillion kroner ($2 trillion). The International Monetary Fund reports Norway’s GDP per capita as the sixth-highest worldwide, surpassing the U.S.

It is also one of the world’s most egalitarian countries, sharing its wealth much more evenly than many others.

The Labor Party aims to preserve the wealth tax that has been integral to Norwegian policy since 1892, imposing up to 1.1% on assets exceeding 1.76 million kroner (about $176,000), though reductions and exemptions apply. Labor argues repealing it would cost 34 billion kroner (approximately $3.3 billion) annually.

Of its rivals on the right, the Conservatives want it reduced and the Progress Party of Sylvie Listhaug, which calls for lower taxes and more immigration controls, wants it scrapped.

Polls have shown Listhaug’s party ahead of the Conservatives, led by former Prime Minister Erna Solberg, who were the senior partner in the last center-right government from 2013 to 2021. It has been bolstered by an energetic social media campaign, driven by youthful influencers who have inspired younger voters against the wealth tax.