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INTRACTABILITY#45 of 56 by βWPaper #58
Tax Havens and Offshore Finance
Sovereignty arbitrage prevents coordinated enforcement. Pillar Two (15% minimum) adoption incomplete. $427B+ shifted annually.
WELFARE BETA
candidate beta-W 1
source-reported average; admission pending independent channel and denominator review
THEOREM TYPE
Intractability
institutionally reformable
SOURCE STATUS
Summary + deck generated
verified by paper record
OPEN HTML DECK ↗Deck mode is an on-site reading view, not a PowerPoint download.
Theorem status: evidence-traced claim under the cited paper's assumptionsMC interval status: re-estimation required; legacy template bands are withheldWelfare beta is a source-reported candidate average; channel and denominator admission is pendingAnnual industry revenue is the denominator, not profit; both quantities must share the activity boundaryFalsification: show the same game preserving system welfare without changing the payoff structure
1.00
welfare beta
$491.5B
annual loss ($B/yr)
$492B
annual revenue ($B/yr)
KEY FINDINGS
THE SOVEREIGNTY ARBITRAGE
Under Sovereignty Shield (A1), Capital Mobility (A2), and Jurisdictional Competition (A3): no institutional arrangement can simultaneously preserve national sovereignty, permit free capital movement, and prevent tax base erosion.
PLAIN ENGLISH
Sovereignty is for sale. Tax havens commodify their legislative authority, offering secrecy and zero rates to attract mobile capital. The result: $492B in annual revenue sheltered while $3.08T in welfare is destroyed through fiscal drain, public services degradation, inequality amplification, and governance capture.
six-lane CONFLICTORING ADVICE
EVIDENCE & LIMITATIONS
- Theorem status: evidence-traced claim under the cited paper's assumptions
- MC interval status: re-estimation required; legacy template bands are withheld
- Welfare beta is a source-reported candidate average; channel and denominator admission is pending
- Annual industry revenue is the denominator, not profit; both quantities must share the activity boundary
- Falsification: show the same game preserving system welfare without changing the payoff structure
REFERENCES / CITATION STATUS
Reference counts for this manuscript have not been published yet. Treat its citations as unverified until a source list is available.
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EXECUTIVE SUMMARY
The global tax haven industry enables multinational corporations and haven jurisdictions to capture annual revenue while imposing massive costs on the global fiscal commons. The paper gives a formal analysis using the Missing System Theory and System Asset Pricing Model. I prove that the bilateral tax competition game structurally excludes system welfare, creating a self-reinforcing Hollow W
SOURCE QUESTIONS
WHY THIS MATTERS
For the economist
Classified Intractability. The source-reported candidate beta-W of 1 is the average system-welfare loss per dollar of industry revenue. Its channel inputs, denominator, and uncertainty packet still require independent admission.
For the regulator
The constraint is institutional, so a well-designed rule can reach a better outcome. Check whether a proven policy model already exists for this domain.
For the executive
This is where a privately efficient decision can degrade the system the business depends on. The governance question is which decision records would make that system cost visible before it is normalized.
For the teacher
An on-site HTML deck and the expanded curriculum cover the argument, the evidence, and the measurement. Use the deck as a self-contained class session, then route deeper through the 45-50h core course or 100+h full curriculum.
For the affected community
In plain terms: who gains from the current arrangement, who pays for it, and what rule change would alter that split. The summary states each without jargon.
RELATED BY WELFARE BETA
Welfare beta is shown on the same scale for each card: annual system-welfare loss divided by annual industry revenue, with both measured on the same domain, same time period, and same activity boundary.
© 2026 Erik Postnieks · Independent Researcher · Salt Lake City