Norway Is the Only Country with Public Tax Returns (2018)
theculturetrip.com
theculturetrip.com
But there's a big caveat: The reported figures are net numbers, so the income for example, will include capital gains, and exclude all deductibles. There are lots of deductibles here, so for a salaried worker without any capital investments, the income number will be lower than their actual income, due to deductibles. Likewise, if you have lots of appreciating investments (stock that pays dividends, sale of stock, whatever), your income will be higher than your salaried income.
Same for fortune (or net worth). If you have more debt than equity, then your net worth will show up as zero. Basically, if you own a house worth $1MM, and have $1MM in some other debt/loan, your net worth will show up as zero...even though that debt could practically be at zero rate, from a relative, or whatever.
So, all in all, it's a neat concept that was (AFAIK) designed for more transparency, as well as lowering financial crime (i.e, why is your neighbor driving a lambo, if he's on gov. benefits?) - but it's not optimal for things like checking salaries. Lots of people are very interested in salaries, in order to have some number when negotiating their own salary. Just one example.
I think most people simply don't care enough to check out other people, while risking to come off as a snooper.
And a terrible idea.
Employees would have perfect visibility into their peer's (and boss's) salaries and it would be impossible for employers to covertly take advantage of people with less leverage and poor negotiation skills?
There's a meme I've heard that it's difficult for some people to discover that their salaries are lower than their peers. I can understand that, but equally I don't totally understand it as an argument for continuing to pay people less. (it might not be the strongest argument against, it's probably worth finding others too)
My personal opinion is that it might not have a busting effect on any one activity except journalism, but it might be a stop measure for some politicians and public figures.
Personally, Id rather have my medical history available to the public than my personal wealth or income (and Im loath to give that up!). No one except my wife knows how much I make. In the case of my parents, my mom has never known how much money my dad makes.
They may seem strange to you, it may seem barbaric or backwards. That’s irrelevant - I’m firmly entrenched in this position and wont help you release this data (through my vote, and legal lawsuits, clearly).
You can’t dismiss me as an eccentric American behind the more enlightened Europeans - Im not American, I am and grew up in Europe, I just live in the US.
Nor am I or did I grow up rich. Growing up, my dad whenever my dad was doing the bills he joked he was feeding a blackhole (debt). We never knew how big this hole was, but we knew where it came from - even a hard working engineer has a steep financial hill when you’re from a poor country.
You really must understand ours is a deep seated difference in points of view. My mom has never asked how much my dad made, my dad has yet to tell her. My mom had a vague idea how much she could spend (her guesstimate was very good) my dad never enquired what she spent money on. He himself never spent any money except on us. The result is they never fought over money, the most common marital problem (I guarantee you this. Both my parents would rather be paupers than put money between their relationship - they are both very stoic and devoted to each other). I doubt this would have been the case had my mom ever displayed any interest in money.
So what does making my tax returns or my salary (probably the lowest among my colleagues) publicly available mean to us? It means inviting strangers into our intimate space, more intimate than the fact that I have a rare auto immune disease Ill share with a random person on the internet (anonymized, of course :P ).
You see, there are people who view this information not merely as a means to a more just society (whatever that means anymore) but as a very intimate part of their family life. Just because some cannot see that doesn’t mean it isn't real.
Fear it will cause spousal resentment, impact future offers, being targeted by gold diggers or grifters? Wealth tied to identity?
I can certainly see that. In my experience, there are very few people who respond appropriately when they learn what someone makes. Rarely is it: “oh, good for them, anyway, moving on …” Most of the time, it’s unhelpful and toxic commentary about whether the person is overpaid/spoiled/poor with money/a sucker or whatever depending on their circumstances. I wish it wasn’t that way but that has been my experience.
Its hard to be friends with someone who you know makes twice (or half) what you make. But there are many people who I think are cool and would want to have a relationship with that make a lot more/less than I.
Thats also a reason why modesty in our behavior is important - the wealthier person in a relationship shouldn't keep proposing things that are financially difficult for the other
https://www.vero.fi/en/About-us/finnish-tax-administration/d...
It changed when internet got popular and everything was dumped online with no restrictions for a few years until people realised how much more invasive that got than the prior system, so now you have to log in and people can see whether or not their name has been looked up if you do it online.
In the US, if you hypothetically had, say, $10M net worth, you'd be best to not let anyone know, and stay under the radar.
If you have a billion then it doesn't matter, go all out and hire your own 24/7 security team.
Forcing construction of mixed income neighborhoods (much like forced busing of students) very quickly improves schooling and policing outcomes, though sadly more affluent folks often move out soon thereafter.
Especially the particular suburb of Stockholm has very quickly found itself in free-fall from "nothing bad ever happened here" to "you should not walk alone after dark".
-- https://www.nytimes.com/2022/01/07/arts/music/einar-sweden-r...
So a 1268% increase in "anti-social behavior" since 2015.
Obviously there has been a massive increase in violent crime, I guess you live somewhere that you are protected from that?
Personal security in countries with low crime and murder rates like Norway and Finland is pretty easy. They are very safe countries. E.g. kidnappings are very rare there and nobody carries cash anymore because they are also modern countries. So, the opportunities for robbers and thieves are limited to non cash items.
It doesn't have to though. That's a choice. Heck I know people with likely >10M net worth that are still living with roommates.
> nobody carries cash anymore
But if they know you have $10M, they could kidnap your spouse on the way to work, and children on their way to school, for a $1M ransom in bitcoin?
Something that's more easily avoided if they don't have a price tag associated with your face in a publicly-viewable database.
Finland and Norway have plenty of rich people walking around without protection and completely unarmed. Kidnappings are not a regular thing in those countries nor are they getting robbed regularly. They might install burglar alarms on their properties though.
The emergence of modern states happened with the industrial revolution and the ascendence of the bourgeoisie. The original point of this centralization of power—although some are now a bit more egalitarian—is to protect private property and the interests of those who own it. And by that I of course mean the rich.
The companies get a publishing license, effectively giving them the same free speech protection as the press. They then request all the information from the government and offer it in a easy UI, for a nominal charge of course.
You can also visit the closest Skatteverket and use their computers, I used to do it as a kid...
Oh and you dont have to speak to anyone or identify yourself to do it either.
Newspapers can and do publish analysis of tax returns by politicians, for example.
Some years ago the tax authority decided to actually publish everything online for ease of access and the country exploded, so the privacy authority told them not to do that.
The information is inevitably less detailed than what gets siphoned off to Credit card companies and their downstream data processors, less detailed than the ad tracking which monitors my everyday life and less than what people already share on social media. And the state already has your info!
The only thing that changes for me is that now you can't lie about your finances anymore, so no actings above your station and no acting humble while being rich. Naïve but serious question: what are the serious downsides aside from "my social circle would collapse in jealousy and rage", which sounds like a problem with the social circle?
In a negotiated setting where you can hide that motivation, everything is open, but we as a society have settled on price discrimination being okay (see, first class tickets), this simply evens the playing field so the rich can't hide their wealth. Also, if it really pains you, as a wealthy person you can easily get the poor person treatment by giving away your wealth, so I find these "both types of discrimination" rhetoris inconsistent anyway.
I'll agree that society has normalized some price discrimination in terms of interest rates being based on credit scores and we can debate the merits in relation to loaning someone money. And there are actually a lot of laws in place around how high an interest rate can be, who can be loaned money, etc.
However, first class tickets are not price discrimination because the offered service is in fact different which means it's not comparable to coach or business. In fact, I'm not aware of a service in which they ask you for your income statement when you walk in the door and then change the price accordingly.
Lastly, I find your rhetoric that a wealthy person should just become poor if they want equal treatment to be odd. Who classifies as wealthy? Will it be up to a judge every time? How will that change as the standard of lower, middle and upper class changes within a country?
As for your last point, I'd be against fixed definitions (as you are I think), but i have seen the argument that discrimination against the rich is just as bad as discrimination against ethnicities, poor people etc., often in the context of progressive taxes, wealth taxes, inheritance taxes, discussions about billionaires.
And it's at these contexts my (flippant) rhetort flies. If you want the poor person price really badly instead of someone trying to fleece the rich guy (still mainly guys), then become poor. If you don't want to pay a high tax rate above X million income, I'm sure someone else will want to. Etc. The exact threshold is always defined by something else and will vary, and there are of course limits. But in this instance, iff the majority of people benefits from radical transparency (which I'm not 100% on, but sure enough that I'm arguing for it) by being able to negotiate wages and properly asses the financial situation of the country, as well as helping to detect tax evasion via community tipofs(controversial I know, my opinion, not universal etc.), then I'm okay with sacrificing the ability of the wealthy to get good housing deals or hide dynastic wealth. They can always give away that wealth if they want to get better deals, pay less taxes etc. something you can't do with ethnicities, upbringing etc. So discrimination based on wealth is inherently different than those other instances in my eyes and this is what this remark was about
Serious downsides include:
* making it harder to keep money making opportunities secret. If you are known as the truffles guy, who spends time hiking Mt. Cayenne, and then suddenly every one knows that your income rose 20X last year, people can deduce that Mt. Cayenne has a big stash of truffles. It reduces the incentive to spend years scouring the forests looking for sites rich in truffles, and makes it more profitable to track income tax receipt rolls to find sudden surges in income among truffle foragers.
* requires that certain people in the state inspect all of your private economic interactions, and that you allow this under pain of imprisonment, so that accurate income data can be collected. This gives massive power to those who do the inspecting, and has collateral damage for things like encrypted communication, which due to its ability to aid in evading these inspections, could become restricted.
With regard to the second, yes a case can be made that since countries invade privacy any way, utilizing this information like this doesn't add to the privacy invasion. Maybe. But an admittedly speculative argument could be made that it makes more people economically dependent on income taxation (like the hypothetical tax receipt roll scourers who identify and stalk successful truffle foragers), making it harder to abolish the institution. The way I see it, the less we normalize income taxation, the better.
Claiming it doesn't matter because your privacy is already threatened from other angles doesn't help the problem. There are ways to mitigate the examples you raised (removal requests to the data clearinghouses, not participating in social media, etc).
> no actings above your station
I don't even know where to start on that comment. The premise that wealth determines some concept of "your station" is part of the problem here. I place a great deal more weight on more meaningful qualities of a person.
It would be nice if we lived in a world where nobody cared how much money you have. Until that time I respectfully prefer to keep my financial affairs none of your business.
I think you're reading things that weren't intended. My reading was that the problematic people are people who act as if they're better than others because of the amount of money they have, when in fact they're rather similar to the people they look down on. In a world where taxes are public, that's no longer possible.
Maybe you're confused because you haven't encountered such people but I assure you they exist.
I'm from (somewhat) poor country, so I can list some downsides of publicizing your high income:
- Your extended family, friends and even some acquaintances start treat you as a money bag to get loans or just asking for "help" (loan without clear repayment schedule that you should not expect to be ever repayed in full) in case they have health issues.
- You attract gold diggers. Solving financial issues by getting pregnant and marrying well of partner is still quite popular here.
- Starting from some level of wealth you may be targeted by real bandits (who often work in law enforcement).
- Some people would just treat you differently. Basically what you said by "my social circle would collapse in jealousy and rage" but also small things like "oh this guy is rich anyway, so no need to offer to buy next round of drinks after they bought one" etc.
- Recruiters are very pushy in asking your current salary and expectations. You learn to push back quite quickly, but giving them ability to easily determine your current income would be bad.
Now, can you list some upsides? (besides determining how much employer that you would like to join pays for similar positions, which is better solved by levels.fyi anyway, and without downsides listed above)
- unbiased Salary data, making union negotiations and expectations of new grads grounded in reality, unlike the reporting bias of levels, Glassdoor etc. This is why management hates people sharing salary info - making it easier for new founders to budget their talent costs - directly answering something you said, Making it easier to push back against recruiters (market average is this, I'm at least average, fuck you pay me) - easier time spotting tax evasion (which some might see as a downside) - exposing inequality in society in undeniable fashion, giving teeth to any arguements about them. Similarly for arguements about which data shouldn't be collected, which incentives are working or not...
The bandits/corruption thing I can't argue with, but that's a deeper and different problem than public taxes in Norway or Germany. Same for gold diggers and money bags
You can have some stats or non-PI info published on this. Or force companies to publish how much they are paying to existing employees with same title, like they starting to do in several US states. No need for nosy neighbor or potential romantic interest to have access to my income.
> Making it easier to push back against recruiters (market average is this, I'm at least average, fuck you pay me)
Or you might be below average like significant amount of people who I have interviewed and who can't reverse a string? Anyway, everyone can't get "at least average" salary, that is not how average works (note for pedants: unless everyone earns exactly the same, of course).
> easier time spotting tax evasion
What does it have to do with tax evasion? IRS already has this data. If you are worried about politicians and government employees and want visibility into their earnings (which is reasonable), you can make only their data public, which is already implemented as a law in my country. Again, no need for a random Tinder date to have this data.
> exposing inequality in society in undeniable fashion, giving teeth to any arguements about them
I won't argue with your leftist agenda, but again, you can just publish stats (e.g. senior software engineer average in location X is Y) without letting my extended family know how much I make.
> The bandits/corruption thing I can't argue with, but that's a deeper and different problem than public taxes in Norway or Germany. Same for gold diggers and money bags
Well, maybe let's not enable these people then? Especially since there are multiple other options that I presented previously.
If you can justify paying less, it's negotiation time right? This just sets the starting point.
The rest I won't address because it's a boring argument to have where you call me leftist because you disagree politically instead of discussing in good faith
BTW I assume we are both not from US, so I don't understand why you are acting offended after being called leftist as a reply to explicitly leftist statement ("exposing inequality in society in undeniable fashion...").
The second part: it's boring because we can have a discussion about which mechanisms are beneficial for society without defaulting to political shortcuts or assuming an argument can only come from a worldview (maybe I'm a weird type of market libertarian who believes in perfect information symmetry?).
You can argue that exposing inequalities doesn't have inherent value because inequalities are good actually Yadda Yadda Yadda and we can actually exchange our views on how and why we disagree...or you can default to the label. Yes we'd be rehashing a bunch, but it would be a good faith discussion.
Edit:@Caskstrength, I can't reply to you, but I would like to highlight my first sentence in the first paragraph. Otherwise, thanks for engaging
Journalists verifying tax reports of politicians seems reasonable. Jealous neighbor or vengeful ex snitching to IRS to audit me (random Joe-the-programmer)? Hell no.
> use the raw data for other research seems positive for me
Why does raw data for research needs to have PII?
> ability to ask my boss why I'm being paid less than my coworker who does less than me
No need to ask your boss, I can tell you straight up: Because you didn't negotiate for it.
> You can argue that exposing inequalities doesn't have inherent value because inequalities are good actually Yadda Yadda Yadda
No, I'm arguing that if you want to expose that those damn bourgeois make too much money for too little work, then you don't really need anything more than aggregate data, but you keep ignoring it.
* having people know you have more money than they do can make them jealous of you; it might also motivate family members to ask you for money and to feel angry with you if you don't share it
* having people know you have a lot of money can make them interested in robbing you or in kidnapping you or your family members for ransom (especially in developing countries, but to some extent anywhere in the world)
Those seem like considerations on par with those people might bring up around other kinds of privacy interests: information that can make people feel negatively toward you, and information that can incentivize people to target you for harm.
(edit: I realized these issues are both more focused on how much money you have rather than on how high your salary is -- stocks rather than flows -- although the two are often correlated)
However some say that everyone should be paid the same, when IMO no 2 people accomplish a task the same way. If no one is alike, then why should everyone be paid an equal wage? I like the idea of some super-skilled people making more than others. If we standardized all salaries it would hurt the top more than it helps the bottom.
So no, I don’t want everyone being treated like replaceable cogs, and if I’m paid more than others then why should I have to defend myself? Radical transparency is a strategy to make people feel like they owe the collective, when my goal is to make everyone feel like an individual.
If you as a manager can justify the difference then having the salary transparent shouldn't be a problem. If you can't, then there's a problem.
If you are the one receiving the salary, I don't see why you should have to defend yourself anymore than we have people"defending themselves" for living in a nice neighborhood. It simply doesn't come up. Just point to the manager/employer and say "ask them"
In Sweden you can even find out the name and address by looking up the vehicles license plate, with one notable event with a guy who were assaulted in his home after a minor traffic dispute.
I had some kind of similar idea about when you share your online / phone location with friends, but are worried about someone just using it constantly to monitor you. Make it clear to everyone that every <x> times, their use of it will be logged and published to the owner, so that they know they are also being kept track of...
(Probably the former, but it is still an interesting thought experiment on levels of trust across the world.)
And shouldn't be compared to larger nations with greater populations.
Norway doesn't scale.
I’ve had friendships ruined because one party earned significantly more/less than the other and this was accidentally disclosed.
For a government to make this highly valuable and personal information available to the public strikes me as utterly dystopian.
In every society, there’s a tradeoff between the individual and the collective, and I think it all works better when it’s heavily skewed towards the individual. Society has no moral right to nose around in one’s bank account.