European governments are grappling with a growing challenge – the movement of wealthy individuals and assets out of the country. The implementation of exit taxes, intended to discourage tax evasion, has proven ineffective. While these measures are debated, they have not significantly curtailed the outflow of wealth. Economic analysis suggests that the impact of exit taxes is relatively minor compared to the overall tax revenue generated. Several factors, including complex international financial flows and tax avoidance strategies, contribute to this phenomenon. Governments are exploring alternative approaches to address the issue.
Credits: Finance & economics
