Capital is not loyal. It flows to where it is welcomed and remains where it is treated well. This fundamental economic truth is at the heart of a stark warning for Canada, where a quiet exodus of people and investment continues amid concerns over policy stability and competitiveness.
The Bezos Blueprint: Mobility in Response to Taxation
The recent relocation of Amazon founder Jeff Bezos from Washington state to Florida offers a powerful case study. In 1994, Bezos founded Amazon in Washington, a state with no personal income tax. However, in 2022, Washington implemented a new seven per cent capital gains tax on long-term asset gains exceeding US$250,000 annually. By 2025, an additional 2.9 per cent levy was added for gains over US$1 million, creating a combined top rate of 9.9 per cent.
In late 2023, Bezos announced a move to Miami, Florida, citing a desire to be closer to his parents. Florida has no state personal income tax and no capital gains tax. Following his residency change, Bezos sold massive blocks of Amazon stock—US$13.6 billion in 2024 and another US$5.6 billion in 2025. By establishing Florida residency, he avoided an estimated US$954 million in Washington state taxes in 2024 alone, an amount that eclipsed the initial annual revenue targets for the state's new tax.
A Cautionary Tale for Canadian Policymakers
This story holds direct relevance for Canada. The abandoned 2024 federal proposal to increase the capital gains inclusion rate featured a similar $250,000 annual exemption meant to target high-income earners. This structure is critiqued for ignoring the 'lumpy' nature of capital gains, where a once-in-a-lifetime sale can be punitively taxed despite a taxpayer's otherwise modest annual income.
More fundamentally, such targeted measures operate on a naive assumption that capital and wealthy individuals are not mobile. As the Bezos example illustrates, when faced with what they perceive as unfair tax grabs, capital and people will seek greener pastures. Capital is agnostic; it flows to jurisdictions with fertile economic conditions that promise safety and growth.
Canada's Challenging Economic Garden
By contrast, Canada's economic landscape has been difficult for the past decade. Economist Jack Mintz highlighted that Canada's GDP fell by 0.3 per cent in October 2025. While single-month figures require caution, growth has been virtually stagnant over the preceding year, at just 0.4 per cent since October 2024.
With the population growing at 1.4 per cent, per-capita GDP fell by a full percentage point. This decline in living standards underscores a profound lack of competitiveness. The author argues that Canada needs stability, competitiveness, and coherent tax policies to retain and attract success, not just political messaging.
The conclusion is clear: until Canada creates a welcoming environment characterized by policy stability and competitive fiscal measures, the quiet exit of talent and capital will persist, draining the nation's economic vitality.
