(1) Populism on your home turf and
(2) capital flight from tax havens.
This is a great tactic if you believe that the ‘Economics of Taxation’ mean that you either tax the flows of money or the stock of money (capital and other ‘fixed’ forms of property). Flows of money include indirect taxes and maybe this scare-mongering’ tactic does encourage capital movements between jurisdictions, however, as a general approach and tactic to attack Tax Havens, I believe this is doomed to fail.
Tax jurisdictions, fiscal policy and ‘one-upmanship’ is a national and international ‘sport’. Therefore, we can’t have the big boys and girls getting upset at the little boys and girls, just for trying to scrape together a few crumbs off the BIG table, in order to survive, can we? A sense of fairness and a measured and proportionate response is definitely called for in this so-called ‘war on tax havens’. Or am I wrong on this call?