[meanduck]

(Not OP)

> In your hypothetical, companies have a strong incentive to start in countries that have strong infrastructure and services (safety nets to reduce risk for founders and early employees, higher-education to ensure a supply of educated workers, etc), then move to a low-tax jurisdiction once they are successful.

In this hypothetical, governement will know that a company will migrate away once it find a better one. This will be reflected in how gov't will charge. It will probably mean the end to "% of income" based taxes instead fixed taxes.

Think of government as a corporation providing some services because that what it will be once movement and /citizenship/ becomes easy. The people who stay (i.e. actual citizens) will play the role of shareholders and (hopefully) will be more critical of their goverment.