I think there’s a difference though when a country has a population less than a typical large corporation and no major industry whatsoever. It’s at a scale where everyone knows somebody who can help you get things done.
What I'm not convinced of is that complexity is actually a necessity.
For example, what's the real difference between operating a fire department in a town on the Faroes, vs a town in the Mid-west? It seems like a fairly cookie-cutter operation where requiring more of them in total does not add complexity to each operation.
Possibly even the opposite, where the scale of the US turns into a net benefit, so you can support your own industries building and providing tenders/appliances - where the Faroes are (I assume) more likely to ship one from Germany.
So I'm not clear why taxation within a single state has to be more complex than taxation within a small nation. I'm not going to deny that it probably is, and probably will be, but I'm less comfortable with the assumption that it must be.
For example, what's the real difference between operating a fire department in a town on the Faroes, vs a town in the Mid-west? It seems like a fairly cookie-cutter operation where requiring more of them in total does not add complexity to each operation.
Possibly even the opposite, where the scale of the US turns into a net benefit, so you can support your own industries building and providing tenders/appliances - where the Faroes are (I assume) more likely to ship one from Germany.
So I'm not clear why taxation within a single state has to be more complex than taxation within a small nation. I'm not going to deny that it probably is, and probably will be, but I'm less comfortable with the assumption that it must be.