If that was how taxes worked, everyone would move to Texas, Florida, Washington for the lack of state income taxes. And or every state in the US would have zero income tax.
And every company on earth would be in Ireland. Or every country would already have 0% corporate income taxes by now.
And the US would have lowered its corporate tax rates a very long time ago because they would have to in order to compete.
And countries with high personal income taxes (eg France) would be 'forced' to lower their income tax rates to compete with low income tax rate countries.
While you see relatively small scale effects like this, it is not as dramatic as you make it out to be. There would be no race to zero.
In fact, there is zero evidence of your scenario having ever played out on a global scale in the past century of well monitored public economic data. If a race to zero were even possible, it would have already been forced into existence, as any variance would be enough to trigger the beginning.
If that was how taxes worked, everyone would move to Texas, Florida, Washington for the lack of state income taxes. And or every state in the US would have zero income tax.
And every company on earth would be in Ireland. Or every country would already have 0% corporate income taxes by now.
And the US would have lowered its corporate tax rates a very long time ago because they would have to in order to compete.
And countries with high personal income taxes (eg France) would be 'forced' to lower their income tax rates to compete with low income tax rate countries.
While you see relatively small scale effects like this, it is not as dramatic as you make it out to be. There would be no race to zero.
In fact, there is zero evidence of your scenario having ever played out on a global scale in the past century of well monitored public economic data. If a race to zero were even possible, it would have already been forced into existence, as any variance would be enough to trigger the beginning.