> So here's a smaller community where the majority is fine with high taxation
Yes, but it's not the majority that runs offshore companies in Panama, but those rich enough that it makes sense for them to go through the trouble of setting offshore companies up.
And IMHO the problem is in simple psychology of how humans compare between themselves. We don't compare in absolute means, but relative to people around us. If you're a middle class and you pay the same taxes as everyone else around you, you might grumble a bit, but in the end you'll except it as a part of life, because, well, everybody does it. If you make a lot more money than others and thus have to pay a lot more taxes, you'll perceive it as an injustice, being punished by mediocrity for your success. And you'll have a much less of morale dilemma should you try avoid paying it.
Yes, but it's not the majority that runs offshore companies in Panama, but those rich enough that it makes sense for them to go through the trouble of setting offshore companies up.
And IMHO the problem is in simple psychology of how humans compare between themselves. We don't compare in absolute means, but relative to people around us. If you're a middle class and you pay the same taxes as everyone else around you, you might grumble a bit, but in the end you'll except it as a part of life, because, well, everybody does it. If you make a lot more money than others and thus have to pay a lot more taxes, you'll perceive it as an injustice, being punished by mediocrity for your success. And you'll have a much less of morale dilemma should you try avoid paying it.