choff wrote:The problem is with offshore banking, it's getting bigger than onshore banking, has no reserve requirements, no checks and balances, and is governed by secrecy. Onshore banks can lend to each other knowing what each bank has as collateral. But offshore banks can't tell if they're solvent or not when they borrow and lend. If their's a run on offshore banks it can't be managed. Plus, the tax dodger's are usually the wealthy, leaving the little people to make up the difference.
Well yeah. And smuggling is a poor way to compensate for high duties. But it is a way.
And you are telling me that overtaxing the wealthy is counterproductive? You are expecting that water is not wet as well?