If individuals and companies don’t have to pay any tax how does the government make money for general upkeep of the national infrastructure and to pay government salaries?
In: Economics
To take advantage of many tax havens, a person/company would have to do a lot of administrative and legal work. This typically only makes sense if there is a lot of income/assets (tens of millions of dollars) to shelter – otherwise the administrative costs outweigh the benefits.
The people and businesses administering this stuff are well paid and their income (plus sales taxes, property taxes, administrative fees etc) go towards government income. The idea is that if you shelter trillions of dollars, just a fraction of a percent of that is quite a large sum of money.
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