Prof G Markets · Friday, August 14, 2026
Gabriel Zucman argues that beyond tax rate changes, the explosion of tax avoidance and the rise of tax havens are significant factors driving inequality. He clarifies that tax avoidance, while legal, often goes against the spirit of the law, and that tax havens facilitate this by offering incentives to multinationals and wealthy families.
“But there are also these other things. Like there are tax loopholes. There are these interesting little things in the tax code. And increasingly complex tax code. And there is also the rise of tax havens, which you talk about.”
“True, you absolutely, that the rate is so important, but there is more than that. There is also the explosion of tax avoidance and sometimes tax evasion.”
“And what you have to understand is that tax avoidance, tax evasion, they are not laws of nature. They're largely policy choices.”
“And the second thing is indeed the rise of global tax havens.”