Saturday, September 02, 2006
The third wave
In the ‘third wave’ world in which platform companies operate, taxes will increasingly become voluntary. Governments will thus have to compete with each other to provide the best services at the lowest possible costs to attract the world’s best platform companies, and their workers. Over time, this should mean that governments which provide the most efficient Regalian functions, and at the lowest costs (Hong Kong? Singapore? ...) stand to survive in their current structures. Hong Kong is adapting to this economic reality. And that is great news for the local economy.