However wicked tax evasion is and however distasteful some tax avoidance may be, people should imagine a world without tax havens and see if they really want it.
The prime reason that tax havens exist is that taxes in most countries are too high. If they did not exist, the competitive element would be reduced, and taxes would go up even more. The EU constantly complains about ‘unfair tax competition’, by which it really means just tax competition itself.
Tax avoidance is what most of us try to do. Resentment about it is largely because the rich find it easier to achieve than the rest of us.
This is an extract from Charles Moore’s Notes. The full article can be found here.