[Smile-n-Win]

AFAIK, Kuwait has no taxes because the government has plenty of oil revenues to finance all its needs. Could Iraq become another Kuwait-like tax-free paradise?

[Smile-n-Win]

"What can I do? Nobody accepts the 10,000 bills at full face value and I was paid in 10,000 bills," said Shatha Abdulrahman. "Banks are announcing that there is nothing wrong with the bills, they are legal tender, but merchants are refusing to honor them."

This is the obligatory "Reuters Bad News From Iraq"(TM) that must be included in every article. So why doesn't this guy just go to a bank, have the bills changed, and stop whining?

[Yaron]

How they supposed to pay for infrastructure, defence schools, hospitals etc if there's no taxation?

For a country the size of brunei or Kuwait it is possible to have no taxes, but this is also dependent on state owned resources, and the benevolence of the Government. Having no tax revenue is a untenable situation for a government.