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The basic problem here is that business is now global whereas taxation is still at the nation state level. Countries have to compete for business and smaller states with limited resources can bring in money by becomming tax havens. I don't really know of any solution to this.

I think it's worth pointing out that even from the perspective of most businesses this situation sucks. Smaller companies or startups lack the resources to benefit from tax avoidance schemes so are at a disadvantage to their larger competitors.

And if you do start a company that is growing large you don't really have much choice but to start doing it too. You won't be able to compete if you are paying 20% and the competition is paying 2%. You have to do it because everyone else is doing it.



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