International Response to the U.S. Tax Haven

The Pandora Papers and recent empirical studies have revealed large movements of capital from traditional tax havens to the United States in the past several years. This Article examines the legal factors that have led to the rise of the United States as one of the world’s preeminent tax havens and considers why previous efforts have failed to change this emerging reality. Drawing upon the U.S. enforcement model vis-à-vis financial institutions in other countries, the Article proposes that several governments adopt a coordinated response of engaging directly with U.S. financial institutions without requiring any action from the U.S. government. This model response could be applied beyond tax to resolve cooperation problems in other international settings