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Comment by HarHarVeryFunny | Hacker News Reader

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.

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How 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.

> 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?)

Sure, but also the least interesting because that difference is very obvious, that's why I'm asking for other differences...

> 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.

You'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.

The 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'.

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