Tax competition is a very important tool for constraining the greed of the political class. Simply stated, politicians are less likely to impose bad tax policy if they are afraid that jobs and investment (and accompanying tax revenue) will move to jurisdictions with better tax policy.
This works to limit revenue grabs by politicians at the state level and it works to control the craving for money on the part of politicians at the national level.
But this doesn’t mean all forms of tax competition are equally desirable.
If a country lowers overall tax rates on personal income or corporate income in hopes of attracting business activity, that’s great for prosperity. If a jurisdiction seeks faster growth by reducing double taxation – such as lowering the tax rate on capital gains or abolishing the death tax, that’s also very beneficial.
Some politicians, however, try to entice…
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Utopia, you are standing in it! 
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