Tuesday, April 10, 2007

Tax havens of the world

In the world, some of countries have not tax; those became the Tax havens of the world, like the Bahamas. “Countries like the Bahamas make tax haven status an integral part of their marketing — relocate to Nassau, and you'll fear no tax man. That's because, for Bahamians and resident aliens there are no taxes on personal income, capital gains, inheritance or gifts.” This is unfair for global tax system, because the break-even price much lower than other countries with taxation, such America. Suppose the costs and quality are same; the local goods will cheaper than goods of import which was from the countries with taxation, because local goods have not tax. Also some rich people move to the tax havens from other countries which are countries with taxation. “For Americans abroad, the only way to fully take advantage of tax havens is to renounce American citizenship, which over 500 people, almost all of very high net worth, did last year.” On the one hand, those people can promote a higher developing economy of the tax havens. On the other hand, those rich people bright much wealth from originally countries. What do you think about this situation? Can you predict whether it can promote the economy or not?

1 comment:

Tian Yang said...

In my opinion, it is a good idea to attract businesses, but not a good idea to develop its economy in a long run. Tax is an important way to collect capitals for the government. It is also an efficient index to adjust the effects of inflation and natural disasters. Without the help of tax, the government cannot easily intervene in the market when it becomes inefficient. Similarly, society’s welfare cannot be ensured. Therefore, no-tax system will provide a seedbed of monopolization. It is the heaven for billionaires, not for all gold diggers. By the way, if I were a thief, I definitely would go to this place to take my chance.