Foreign Account Tax Compliance Act: A Step in the Wrong Direction

Abstract

Taxes have become the lifeblood of modern society and epitomize the power of the collective over the desires of the individual. When a group of people comes together and joins a society, it surrenders some individual rights and desires for the greater good. For the desires of the collective to be effectuated, there needs to be a physical representation of that collective will. As the physical manifestation of the collective will comes together it requires a collection from the individuals to effectuate the needs of the many, and this is the basis of taxation. However, because the physical manifestation of the collective will requires an individual to sacrifice the fruits of her labor, there is an inherent conflict between the individual and society as a whole. This conflict between the individual and society boils down to basic human nature and is at the root of any discussion regarding tax avoidance. Tax collection by the government and tax avoidance by citizens are manifestations of the desires of the individual conflicting with the needs of the collective. In the United States, tax avoidance is a zero-sum game between the taxpayer and the United States with the deck stacked heavily in favor of the government. An apt metaphor for the interactions between the