The thermodynamics of the dissipative two-state system is calculated exactl
y for all temperatures and level asymmetries for the case of Ohmic dissipat
ion. We exploit the equivalence of the two-state system to the anisotropic
Kondo model and extract the thermodynamics of the former by solving the the
rmodynamic Betheansatz equations of the latter. The universal scaling funct
ions for the specific heat C-alpha(T) and static dielectric susceptibility
chi(alpha)(T) are extracted for all dissipation strengths 0<alpha<1. The lo
garithmic corrections to these quantities at high temperatures are found in
the Kondo limit alpha-->1(-), whereas for alpha<1 we find the expected pow
er law temperature dependences with the powers being functions of the dissi
pative coupling a. The low-temperature behavior is always that of a Fermi l
iquid. [S0163-1829(99)06519-4].