Not everybody appreciates my defense of tax havens.
- A Clinton Administration official accused me of disloyalty to America.
- The OECD threatened to throw me in a Mexican jail.
- A former U.S. Senator said I was guilty of “trading with the enemy.”
I don’t mind these threats and attacks. I figure the other side would ignore me if I wasn’t being at least somewhat effective in the battle to preserve tax competition, fiscal sovereignty, and financial privacy.
That being said, it’s definitely nice to have allies. I’ve cited Nobel laureates who support jurisdictional competition, and also shared great analysis in support of low-tax jurisdictions from top-flight financial writers such as Allister Heath and Pierre Bessard.
Now we have a new video from Sweden’s Johan Norberg. Johan’s latest contribution in his Dead Wrong series is a look at tax havens.
Johan packs an incredible amount of information in an 88-second video.
- He points out that stolen data from low-tax jurisdictions mostly reveals that politicians are the ones engaging in misbehavior, a point I’ve made when writing about pilfered data from Panama and the British Virgin Islands.
- He makes the critical point that tax competition “restrains the greed of government,” a point that the New York Times inadvertently confirmed.
- He also makes the key point that tax havens actually are good for the economies of high-tax nations because they serve as platforms for investment and job creation that otherwise might not occur.
- Moreover, he notes that the best way to boost tax compliance is by having honest government and low tax rates.
But this isn’t merely an economic and tax issue. There’s also a very strong moral argument for tax havens since those jurisdictions historically have respected the human right of financial privacy.
For those who care about global prosperity, the real target should be tax hells rather than tax havens.
P.S. If you prefer an eight-minute video over an 88-second video, here’s my two cents on the importance of tax competition.
Reprinted from International Liberty
Daniel J. Mitchell is a Washington-based economist who specializes in fiscal policy, particularly tax reform, international tax competition, and the economic burden of government spending. He also serves on the editorial board of the Cayman Financial Review.
This article was originally published on FEE.org. Read the original article.