Taxation is destiny
The great tax historian Charles Adams – in his book “Good And Evil” – explained that the rise and fall of civilizations can be understood through the lens of tax policy. On November 26, 2025, the UK Government will deliver, what is anticipated to be, one of the most consequential budgets in the country’s history. This U.K. budget is anticipated to include a Canada style “Departure Tax“.
On November 19, 2025 I attended a “U of T” screening of “Death and Taxes“. “Death and Taxes” is a film about how U.S. tax policy (in this case the U.S. Estate Tax) impacted a person, his family, his life and his country. I highly, highly recommend the film.
Make no mistake: “Taxation Is Destiny!”
Whatever the truth may be (if there is such a thing), Canadians are perceived to be much more highly taxed than similarly situated Americans. Both Canada and the United States have tax systems where the circumstance of death triggers special taxation. Interestingly the U.S. tax is described as an “Estate Tax”. Canada claims to be a country with no “Estate Tax”. Yet, the circumstance of death in Canada, is a taxable event of great significance to the vast majority (if not all) of Canadian residents. Notably, the circumstance of death is a taxable event to only a small percentage of Americans. If an American is below a specific asset threshold, he is NOT subject to the U.S. “Estate Tax”. A higher percentage of Canadians pay taxes that are triggered by their death than the percentage of Americans who pay tax triggered by their death.
Whether justified or not, taxation includes the forced transfer of wealth from the individual to the government. Therefore, it is reasonable to infer that:
In Canada (the country with no “Estate Tax”) death (in most circumstances) is a wealth confiscator through taxation!
In the United States (the country with the “Estate Tax”) death (in most circumstances) is not a wealth confiscator through taxation. In addition, because of the “stepped up basis rule” (which allows assets to be transferred tax free at death), death is actually an overall wealth enhancer! The growth in the value of assets (from aquisition to death) escapes taxation entirely.