Law360 Quotes Scott Michel on Enforcement of a Potential Wealth Tax

If the U.S. enacted a wealth tax today, the new global environment of tax transparency and information flows - as well as existing reporting rules like the Foreign Account Tax Compliance Act - could stem the outflow of cash that doomed similar European efforts.

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"I believe that the U.S. government has won the war over Americans having foreign financial assets," said Scott Michel of Caplin & Drysdale, who specializes in tax enforcement and controversy.

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Most people would rather sleep at night, according to Michel at Caplin & Drysdale.

"If somebody wants to evade the wealth tax, they're going to have to focus their efforts on obtaining assets outside the United States in a way where tracing those assets is more difficult," Michel said. "I think that's going to be really hard for people to do."

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"The lengths to which people are willing to risk their underlying assets to avoid paying tax are mind-bending," Michel said.

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