The question was wrong anyway. You don't have to "cut back on services as a tax haven". Cyprus, Singapore, Swizzerland in the past, etc, have all kinds of state services...

Maybe the one asking had in mind some derelict tax haven islands in the caribbean or so? Not all tax havens are like that...

No, services cost money and have to be paid for. That was my argument. Still interesting that you guys find that there is ground for argument - an irrelvant topic would not be ground for argument, wouldn't it?