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First of all, you are conflating tax avoidance (taking actions to avoid tax liability) with tax evasion (lying to the tax authorities about your liabilities).

In the real world, one efficient "tax shelter" is Amazon locating itself outside of CT. If Amazon were to pay taxes to CT, then CT would produce the public services necessary to support Amazon. Since Amazon is not located in CT, this would be wasteful. Thus, Amazon locating themselves outside of CT and avoiding CT taxes is A Good Thing.

[edit: you appear to have edited your post extensively after I responded to it. It's generally polite to indicate when you do this.]




> you are conflating tax avoidance with tax evasion

Fair enough. I meant to use tax evasion as an extreme example to prove the inner case, but I can see how it would look like conflation.

> one efficient "tax shelter" is Amazon locating itself outside of CT

Petitio principii.

> Since Amazon is not located in CT, this would be wasteful.

Does not follow. Where is the dead weight loss?




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