The article examines how tax systems can impact a country's development. It suggests that the relationship between tax rates and administrative capacity depends on a country's level of development. Developed and developing countries may need higher tax rates and administrative capacities than moderately developed countries. The study also highlights the importance of tax administrations' autonomy in increasing capacity as countries develop. Additionally, it discusses how cracking down on tax havens can benefit developed countries, but only benefits developing countries if tax administrators and lawmakers work closely together.