Data Modeling and Visualization of Tax Strategies Employed by Overseas American Individuals and Firms

Abstract

A study of the tax behavior of overseas American individuals and small firms, where the researcher models behavior, through text analysis, using data mining technologies of KH Coder, with data collected from a wide range of sources using interviews, surveys, blog and forum postings, published reports as well as personal communications, to demonstrate and inform using the pattern matching method. Text mining and modeling techniques, using unsupervised machine learning facilitate large-scale analysis of behavioral approaches to taxation to motivate a better understanding of the phenomenon tax avoidance and tax evasion. There are an estimated 9 million taxable overseas Americans corporations and business entities and estimated that as many as 100 billion U.S. dollars may go uncollected, due to tax evasion. A similar shortfall of 100 billion dollars is due to tax avoidance. The researcher proposes a model explaining tax avoidance behavior by the US taxable entities.