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It's a natural protection method against government as leviathan. By forcing a country to consist of competing decentralized tax zones, there is a pressure that prevents long run sclerotic tax increases that grow over time and eat away at the industry of a nation.

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This comment ignores the problem that parent identified:

>> But it has the net effect of pushing the tax burden down onto smaller companies who are competing with the Amazons of the world.

I.e., even if we need a solution to "sclerotic tax increases", this is not a good one, because the solution only works for massive companies.

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