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> When the natural interest for start-ups is to scale up and expand in foreign markets, or to leave the country to seek better deals, the proposed 37.8% exit ta
by diggan 2y ago
> When the natural interest for start-ups is to scale up and expand in foreign markets, or to leave the country to seek better deals, the proposed 37.8% exit tax on unrealized assets over $46.5 thousand that have been accumulated in Norway, seems to be the last drop for any foreigner or Norwegian with big dreams to set a business in the Nordic country.
As prior art, doesn't the US have something similar where if you want to leave your residency/citizenship, you have to pay up, even for unrealized gains and such? Seems like Norway is modelling something similar to what the US already has, and the US seems to still have tech startups coming out of it.
- chaosprint 2y agowell. but these two countries are very different, so can't just copy paste policies.
- CalRobert 2y agoI think the difference is that the US is where you'd want to found your startup anyway.
- diggan 2y agoIf I imagine being Norwegian, I bet the answer to that question is "Nope" more than "Yes".
- CalRobert 2y agoI dunno, even Norwegians like money.
- diggan 2y agoI think a major difference between people from the US and people like me from the Nordics is that we don't prioritize money above everything else. Good work/life balance for example, is commonly more important for us, just like everyone having access to good healthcare is also more important. But of course, not everyone shares that view :)
- CalRobert 2y agoSure, but people who found startups probably do care about money, and for them, the US offers more opportunity. Funding is easier, the market is bigger and unified, etc. The real trick is to be European and then go to the US, make a ton of money, then fall back on the European social safety net when you want to start a family, etc. For what it's worth a good few of my friends are software engineers and now that we're in our 40's it's the Americans who have better work life balance, not me (the American who moved to Europe chasing better WLB but instead just making a ton less money)
- diggan 2y ago> Sure, but people who found startups probably do care about money, and for them, the US offers more opportunity. Funding is easier, the market is bigger and unified, etc. Heh, funny that you just exemplified my "Americans care mostly about money" by only thinking about money/funding :) The startup/company culture might be a bit different in the Nordics compared to what you're used to. Many people just want to create a business that earns "well enough", then they're happy with that, rather than a "takeover the world" approach that is common in the US. > The real trick is to be European and then go to the US, make a ton of money, then fall back on the European social safety net when you want to start a family, etc. You do you! Personally I wouldn't feel ethically OK with that approach, as the country that raised you loses out until when/if you come back, and you're only moving to the US to make money, then leave with it, rather than retiring there. But, everyone has a different approach to life, there is no right or wrong, correct or incorrect, only what we feel is the right approach for us :) In the end I hope you live the life you want, just like me.
- HarHarVeryFunny 2y agoThe US exit tax isn't a fixed penalty for leaving, but rather a way to wring "pending taxes" out of citizens renouncing their citizenship. Per the exit tax you pay taxes as if all your assets had been sold, thereby forcing security gains to be "recognized" at that point.
- diggan 2y agoHow is that different from the thing Norway might implement? Besides the obvious difference of the US exit tax seems to be about citizenship while the Norwegian one seems to be about residency of the company itself.
- JumpCrisscross 2y ago> Besides the obvious difference of the US exit tax seems to be about citizenship while the Norwegian one seems to be about residency of the company That’s a big difference. (Also, is it company or personal residence?)
- diggan 2y agoSure, but also the least interesting because that difference is very obvious, that's why I'm asking for other differences...
- JumpCrisscross 2y ago> that's why I'm asking for other differences If the obvious difference explains the gap, this is unnecessary. Switch American taxation to a territorial system and you’d see a similar flourishing of start-ups and founders in Canada and Mexico.
- HarHarVeryFunny 2y agoYou're right - maybe it is the same - I don't read closely enough, but the Norwegian tax is on "unrealized assets" which may be the same thing.