Back in 2004 Chicago based international business economist and Vermonter David Hale called for Vermont to join the British Commonwealth and become an international tax haven once it achieves political independence from the United States.
Few Vermonters realize that four of the ten richest nations in the world as measured by per capita income are tax havens. They include Liechtenstein, Bermuda, the Channel Islands, and Andorra. Two other countries in the top ten, Luxembourg and Switzerland, have laws which are considered to be quite favorable towards banks and other financial institutions.
To entice businesses to set up their headquarters in Liechtenstein, for example, the government offers low business and income taxes to foreign companies which locate there. As a result, over 5,000 firms from abroad have established their corporate headquarters in a country which has a population of only 35,000. The government of Liechtenstein makes money by selling postage stamps which are prized by stamp collectors throughout the world. Liechtenstein uses the Swiss franc as its currency.
Other tax havens scattered around the world include the Cayman Islands, Monaco, Panama, the Turks and Caicos Islands, and the Cook Islands.
Although it is true that most of the leading tax havens in the world have the Queen of England as their head of state, we are not nearly so sanguine as Mr. Hale appears to be concerning the benefits of hooking up with the British Commonwealth. He suggests that by having Queen Elizabeth as the head of state, the world’s moneyed classes would be reassured because she represents the rule of law. The fact that the British Empire’s disregard for the rule of law is not significantly less than that of any other empire such as the United States seems to have eluded him. He has apparently overlooked the enthusiastic support provided by England under Tony Blair for the illegal wars with Afghanistan and Iraq. While the British no doubt have some virtues, compliance with international law is most assuredly not one of them. Joining the British Commonwealth would be like jumping from the frying pan into the fire.
Be that as it may, transforming a free and independent Vermont into a tax haven seems to make a lot of sense. Ripton businessman Robert Wagner has called for the repeal of “all taxes on business that are based on value added, productivity, or capital.” He would replace them with a “simple tax on unimproved site values, raw material extraction, pollution, and the private usage of any resources not made by man, so-called common assets.” Wagner also favors the elimination of personal income taxes on wages. According to Wagner, “a tax haven would give Vermont business an opportunity to thrive and sell their products at competitive prices both at home and abroad.” For example, “locally-produced, healthy, green, nutritious food might become affordable for all.”
By relieving itself of its tax obligations to the American Empire, Free Vermont would be able to enhance its nonviolent, clean, green, socially responsible lifestyle based on a strong sense of community and mutual respect.
Imagine…Free Vermont
Thomas H. Naylor
March 4, 2010
