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The 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
by HarHarVeryFunny 2y ago
The 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.
- joncrocks 2y agoThe big difference is that the US will sting you for tax wherever you are in the world, whereas most will only tax residents (complexities in terms of tax treaties notwithstanding). Hence in both cases they are both looking to realise gains at the point where they no longer have control over the taxes being charged. A `penalty` for leaving their tax jurisdiction, notionally for the tax they are 'owed'.