What Is an Exit Tax?

An exit tax is essentially saying if you wish to pull out of this particular state, we are going to tax you an amount which roughly approximates the amount of tax that you would have paid. The obvious cases in which it will apply are those cases where people either at or over the whatever the magic line turns out to be. But the non-obvious cases may be more important. All of these things essentially involve real question at all time. And an exit tax is extremely difficult to impose but it's extremely coercive.