Mike Wood
46.2K posts

Mike Wood
@ThePrizeForce
Thatcherite. 99% chimpanzee. 44.1% banana. Net zero skeptic.



Exit taxes are great, actually… and the alternative is insane. No exit tax means anyone with huge paper gains get an obvious playbook: Build wealth in a country. Use its talent, capital, courts, customers, universities, and infrastructure. Let the gains compound untaxed. Then leave right before liquidity and sell in Dubai, Monaco or Singapore. Would be a terrible loophole that would drive away talented people. Canada is just saying: you built unrealized gains while a Canadian tax resident, you cannot erase that tax claim by changing your address before selling. That is good policy! If the US taxed purely by residence and had no exit tax, the optimal strategy for the Cursor founders right now would be obvious: move to Singapore. They could save billions by doing so and it would be bad for America. The tax code would be begging them to do it. They would almost be idiots not to. That is exactly the kind of dumb incentive exit taxes are meant to prevent. Canada’s version is not perfect, but it has a good feature- you don’t owe the tax until you actually sell the asset. You can defer payment with no penalty when you leave. You just cannot take all the unrealized gains with you and pretend the old tax base never existed. IMO Gad should quit whining.


































