Why tax havens are bad

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Paul Sagar, whose a great blogger, and a fairly new member of the Tax Justice Network team wrote a classic blog on Friday. He said:

Quite often people stumble across this blog after putting “Why are tax havens bad?” or “Why should I care about tax havens?”, or variations thereof, into search engines.

Accordingly, I thought it would be good to have a handy — though by no means complete — summary of why one might care about tax havens.

And he proceeded to offer ten reason why tax havens are bad. He explains them all in great detail. I’ll just give you the headings: please go read his justifications, it’s worth the time:

1. If you care about the current global financial crisis, then you care about tax havens.

2. If you care about undermining the domestic tax revenue authorities of your country — which means undermining hospitals and schools and all the other good things that tax makes possible — then you care about tax havens.

3. If you care about a fair tax distribution, then you care about tax havens.

4. If you care about Government hypocrisy and inconsistency, then you care about tax havens.

5. If you care about the plight of developing nations, then you care about tax havens.

6. If you care about international terrorism, then you care about tax havens.

7. If you care about international drug running — and the vast amounts of power and wealth it puts in the hands of international criminal gangs — then you care about tax havens.

8. If you care about human trafficking, then you care about tax havens.

9. If you care about fighting corruption, than you care about tax havens.

10. If you care about democracy, then you care about tax havens.

As Paul says “The above is not intended as a complete or comprehensive list. But it should serve as introduction to a basic fact about the modern world: tax havens are at the nexus of all that is going wrong with global financial capitalism. And because global financial capitalism affects everyone, everyone should care about tax havens.”

Hear, hear