How do the governments of tax havens make money?

Question

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

Answer 1

The US itself did not have an income tax through the first part of it’s history. The Constitution had to be amended to even allow it, in fact. There are tons of other ways of raising tax money. Tax shelters tend to be smalller countries which makes this easier.