Do keep in mind, when corporations have more power than nations, they can offer other payments of more value than taxes. For example, how much do you think UCAS buys in the way of Ares gear? Wouldn't it behoove the UCAS to make Ares happy? And if they're giving up say $100M in taxes, but getting 'favored status' saving them $150M in high-tech war gear, isn't that a net gain for both parties?

I think it's reasonable to assume that corporations pay little or no taxes or fees on their extraterritorial turf, however on the flip side, they make sure the nations in question get a lot of favorable deals in regards to their gear. The result? Governments with little cash, but lots of expensive, cool toys. Fun for all!

See, that makes sense.

If only the majority of things delivered by government were goods, not services. But as is, the government spends the vast majority on services, so that doesn't particularly work.

Corp's provide the vast majority of government services. Everything from basic police services on up to maintaining the governments spy satellites. Governments exist is SR solely because the corps like to have something to hide behind.

Let's use trash collection as an example: The corp charges the government exactly as much as it costs them (or even less) to collect and dispose of government waste. Then they sort and recycle said waste and sell it or reuse it. Thats where their profit comes from.

The Lonestar Sourcebook says flat out that their policing services don't turn a profit, and operate at a loss on occasion. But LS doesn't mind because of the other, profitable, things they can use control of the police force for.