Wednesday, April 8, 2026

Exit tax

As states like Washington, Minnesota, California, Massachusetts, New York and Illinois adopt different types of wealth taxes, they find companies and individuals leaving their states and moving to lower tax states like Texas, Florida and Tennessee. They are responding by installing exit taxes, meaning when you leave the state you will have all of your assets evaluated and pay an exit tax on the total. Some assets like stocks and bonds can be easily assessed but others like personal property are more difficult. This will lead to moving assets out of state before moving while using other methods to avoid counting assets. The income gap is wider today than any time in the past hundred years so this is the time to tax the rich. Combine this with higher paying jobs as manufacturing comes back home and it would be a way to reduce the gap.

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