In the past few months, the Department of Treasury has been diligently working to expose those taxpayers who are seeking refuge in other countries. However, with the recent change in presidency, all the efforts that the Obama administration has put into exposing tax evasion will be brought to an end. Countries like Europe are being urged more than ever to take a more drastic stance against tax evaders.
Since European laws only require the taxing of businesses and individuals on where they reside (as opposed to the U.S.’s standard of taxing all income regardless of residency and where the income was earned), it is probable that many will choose to move their money overseas to escape tax responsibilities.
Respected economists and tax experts are urging Europe and other countries alike to do their best to reduce tax competition with the U.S., hoping that more consistent tax standards and requirements across the board will decrease the chance of tax evaders.