Cross-Border Taxation and Money Laundering Incentives

So, there’s an interesting game being played by governments around the world.

From a purely game theory[1] perspective, to optimize tax income, it makes sense for governments to do two things:

1) Find all the people all over the world they can tax and tax them.
2) Convince people from all over the world to move to their jurisdiction for lower taxes

Now, if this is ‘tax avoidance‘, this is still legal[2]. But it seems to often veer into ‘tax evasion‘, which is not legal.

All this is leading up to say that while the United States is talking about tax avoidance and tax evasion around the world, it seems that Congress seems to be one of the largest stumbling blocks to solving the problem[3].

[1]I am informed that from a purely grammar theoretical perspective, ‘From a purely game theoretical perspective’ is incorrect.

[2]Although, when you can purchase laws…

[3]Note that this article tries to get more hits by using the word ‘Rothschild’.

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