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> It would be very easy to make holding such stock illegal. Really? I think the USA already has many laws in place to make offshore tax evasion harder. These l

> It would be very easy to make holding such stock illegal. Really? I think the USA already has many laws in place to make offshore tax evasion harder. These laws also have the effect of making it very hard for Americans to do (honest) financial stuff in other countries. For example, you want to buy a second home in another country, and maybe open a bank account there to take care of related bills? Or maybe you see some great investment opportunities in another country and want to open a brokerage account there, to buy some ordinary shares? Well, because of the laws already in place, many foreign banks don't want to deal with you, because complying with these laws is such a hassle. Well, I guess maybe it would be worthwhile for them if you were a billionaire. Also, you might end up with a tax bill of more than 100% of your gains back in the USA, if you're not careful.

codewaffle 11y ago
It doesn't matter how hard you make tax evasion - if it's possible, then those with resources to spare will be able to game it, and those without will suffer.
MrTonyD 11y ago
It has been a standard practice to discourage tax laws by making them apply to everyone equally. But there is really no reason for that to be the case. Perhaps I have the advantage of having worked on Big Data problems with the NSA, and we live in a time when it is possible to write laws that allow people like you and me to have almost no "red tape" associated with our financial transactions. So, while I agree with your observations, I know that they are also a tactic used by the rich.