[rdtsc]

I wonder it if it stems from entities like corporations and individuals being treated in a similar fashion by some law. So they don't want to all of the sudden to have every single US company to end up headquartered in the Cayman Islands.

Also if they don't do this. It pretty much guarantees that any wealthy individual will leave the country for a tax haven. Say you reach a $10M/year income if your tax rate is 30% in US, given your financial status, it would be very easy for you to move to Mexico or another country and just say "Well, I am not in US anymore, can't tax me".

Now in actuality this is already happening. They are just making it harder. They are trying to plug the holes in hunk of Swiss cheese.

[woe]

Even if we accept that this is undesirable, surely it is within the ken of mankind to devise a system that hits these wealthy tax evaders without placing unreasonable burdens on every single overseas national, regardless of their circumstances.