Starting with the fairly tame observation that taxing commercial activity results in less of it; I'd imagine the country that is the biggest tax haven has significant commercial advantages. I'd imagine if we looked back at the height of the British Empire's commercial successes we'd find London was hoovering up commercial activity from all over the place.
And once a lot of finance is flowing through a country, I'd expect some sort of interplay with political influence to happen.
You can tax land? A hard working person living a frugal life and who doesn’t buy real estate can avoid paying the vast majority of taxes in such a country, e.g. Singapore.
Such a person would be still paying that tax indirectly as it would be funded by any payments for the "land they use" e.g. housing rent would be directly influenced by that land tax, just as the prices of services (rent can often be ~30% of the base costs of urban service providers).
> If you don't tax commercial activity and wealth, you end up taxing work. This kills societies.
In general this is true but if you are one of the few tax havens in the world then you have so much money going through that a very small percentage tax adds up to enough money to keep your citizens quiet. This only works locally though. Globally, other societies are getting screwed.
And once a lot of finance is flowing through a country, I'd expect some sort of interplay with political influence to happen.