Impacts on State Sovereignty

• Loss of State Revenue: Governments miss out on vital funds, impacting their ability to provide public services like education, healthcare, and infrastructure/
• Economic Inequality: With TNCs and wealthy individuals bearing a lesser tax burden, the average citizens often bear a disproportionately high tax responsibility. This dynamic can deepen economic disparities.
• Eroded Public Trust: A perception that the wealthy or big corporations evade taxes can diminish public trust in governmental and financial systems.
• Policy Challenges: Governments must constantly update tax laws to close loopholes, leading to complex and extensive regulations.