thinkabit,
You say that as though being a tax haven isn't a bad thing. But tax havens aren't rich because they're where the high value economic activity occurs; they're rich because corporations have chartered accountants to shift money around to make it look as if the high value economic activity occurred there, even though it actually occurred somewhere else.

I think it's your attitude, rather than GJOESQ's, that highlights why Australians aren't doing so well. When people complain about how tough life is for them, you mistake it for envy. And you fail to understand that low taxes are just one of many things that are good for business – and in terms of benefit:cost ratio, cutting taxes ranks very low.

I do share Aidan's point about tax haven's being an ethical issue. Clearly, not every country can be a tax haven. This would cause a glut of tax havens and reduce the viability of most of them, thus causing severe economical stress with those surplus tax havens. It is understandable that Liechtenstein loves being a tax haven because it is a niche market they can serve.

I quote from Wikipedia, "The country's low tax rate, loose incorporation and corporate governance rules, and traditions of strict bank secrecy have contributed significantly to the ability of financial intermediaries in Liechtenstein to attract funds from outside the country's borders. The same factors made the country attractive and vulnerable to money launderers, although late 2009 legislation has strengthened regulatory oversight of illicit funds transfers."

I don't believe that we can equate what has worked for Liechtenstein to what may work for Australia. However, one can say that, leaving the ethics aside, the Liechtenstein government has made its economy work for them! QED :-)

Everyone knows that but nothing can be perfectly good, it must have something to balance. Nothing too much is good.