> [..] this taxation is in place effectively due to rich people in the first place hiding money in accounts overseas.[..]
I think that was the original intent but:
1. It affects everyone including many people not paying taxes in a amount where it matters.
2. I'm not sure if it works, the really rich people (i.e. the ones you would want to be "captured" by this law the most) have way to many ways to avoid paying taxes and reduce the
amount they "in person" have to pay.
It might be reasonable to have a cut blow which you you don't have to bother with this.
I also have frequently considered if it would make sense for the country I live in to have such a law.
But in the end I realized that this is probably not what I would want.
In the end the problem is much more countries which intentionally create tax gaps to benefit from it but directly hurting other countries with that and even potentially undermining their governments independence.
Through without question even if that is solved there is still the fact that even wrt. countries which do not do so their can be huge differences in taxation, but "somehow" "disabling" tax havens would be a much bigger step in the right direction then this regulation IMHO.
The US is the top place to hide your money if you are a foreigner
Yet foreign countries are not rushing to change their laws to tax their citizens living abroad. There is no urgency to tax their expats who havent worked or lived back on foreign home for years, even decades.
So if nost countries have reason to complain about us helping hide stuff, they dont seem interested in enforcing anything
Or are not able to. Weather it's because of risking more people with money fleeing before
changes take into effect, to much influence of wealthy people in politics or being forced by external forced, e.g. in context of not-so-public trade agreements.
