There is now a growing discussion on whether the UK is going to reduce an exit tax. I believe that it's very likely to happen. Many countries have exit taxes, including Canada, Australia, Germany, the U.S. in a certain form, Norway, etc etc. Many more countries are getting them. It fails every single time. And countries keep doing it. Here's why - Without an exit tax, people can leave a country and sell their assets that have generated gains after leaving without paying tax to the country where the wealth was created (unless it's real estate). This is widely seen as "unfair", because countries always feel entitled to tax people for their gains, especially if they are used to doing that. It is also seen as an "incentive" to leave, capitalise gains in a country that doesn't charge this tax or charges less, and come back. This makes exit taxes popular. Countries also believe that if they make it expensive to leave, people won't leave. So why do these taxes fail? (1) Becau...