If you go out of the western developed world, you'll find out that tax rates don't effectively exist in much of the developing world. Officially or unofficially

If you go out of the western developed world, you'll find out that tax rates don't effectively exist in much of the developing world. Officially or unofficially. For example saudi arabia and dubai have %0 income tax for example. Not great places to live permanently for other reasons, but they exist. I don't think they will let go of their %0 income tax rates any time soon either. Panama and the HK only tax Panama and HK source income. They are far nicer places to live. This tax nature is unlikely to change any time soon. Switzerland has no capital gains tax on share sales. The UK has a horrible tax law called non-domiciled resident that has created the housing affordability apocalypse of london. The wealthy can just pay a flat tax of 30k pounds per year after 7 years of the status. Those 7 years before they do not pay tax on their world wide foreign income. All of the mentioned nations above are not small micro-states that can be easily bullied, and have too many power players in their country that benefit from the status quo to allow those changes to happen. The only reason why they will change is from higher power players who would benefit from their taxation.