OSLO, Nov 24 (Reuters) - As Norway's wealth tax prompts wealthy individuals to seek residence elsewhere, the government defends the levy as a crucial driver of equality. The tax has been in place since 1892, with rising rates impacting a growing number of millionaires. Current regulations impose a 1% tax on net wealth between 1.76 million and 20.7 million crowns ($174,000–$2 million), increasing to 1.1% for wealth beyond that threshold. In 2023, approximately 671,639 individuals, around 12% of Norway's population, contributed to this tax. Despite an exodus of wealthy residents, proponents argue this tax generates necessary revenue for the state and fosters a progressive tax system. While some warn that the tax could discourage investment and entrepreneurship, supporters contend it helps maintain Norway's status as one of the world's most equitable societies. The nuances of this model may provide lessons for countries such as Italy, France, and the UK, as well as urban centers like New York, as they navigate similar economic challenges.