Tax Havens Don't Have Taxes. So How Do They Make Money? | Economics Explained

The video discusses the role of tax havens like the Cayman Islands and Panama, which attract shell corporations by offering no traditional taxes. Despite the lack of income, corporation, inheritance, capital gains, or gift taxes, these regions generate revenue through registration fees and work permits, leading to budget surpluses. The video highlights the economic significance of these alternative revenue sources for small economies.

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