It doesn&#x27;t create much of a free rider problem at all, actually. Most tax money is spent on wealth transfers to old people (and non-workers to a lesser extent) and the DoD. These are not particularly useful for startups.<p>If a company headquartered in Singapore makes use of US labor (and implicitly our effective, but extremely overpriced schools), it pays a fair rate of taxation on it. It simply doesn&#x27;t have to pay taxes to the US on profits from selling goods manufactured in the Philippines to citizens of Japan.<p>That&#x27;s ultimately the reason for moving corporate registration overseas, and that&#x27;s the reason my next corporation will probably be headquartered in Singapore. Global taxation is insane; it&#x27;s taxing US corporations for services that <i>other governments</i> have already provided and taxed them for.