Under the rubric of state sovereignty and non-interference, nation-states are allowed to set their own tax policies. In theory this is correct, but the reality is quite different. Tax policies of one nation-state can undermine the tax policy of a neighbor, creating an uneven economic playing field. The US and high tax countries such as in northern Europe seek extra-sovereign disclosure on their citizens and residents residing in other countries to keep their systems going. Nonetheless, a deeper issue is why do people seek to avoid paying taxes in their home countries, while trusting another country? The best systems, such as in Scandinavia, are based on social capital and transparency. While China seeks to develop a worldwide system of taxation similar to the US. This chapter posits nation-state incompetence, corruption, and financial rules that create severe economic imbalances between countries, and how some countries are forcing compliance. Restructured playing fields with reducing inequality and having transparency with national economic regimes will eventually bring about a uniform playing field, until that happens, standards and enforcement methods will vary considerably.