[fastball]

But is lowering effective tax rates a success if it is a race to the bottom?

[londons_explore]

If a state can still do all the functions their people expect of them with fewer taxes, I think most people would call that a win.

[fastball]

Yes but I guess what I'm worried about here is a tragedy of the commons-type situation where if a couple states do it (offer better tax incentives) than they can make up for the lost revenue in other ways but if everyone is doing it then you have, well, a tragedy of the commons.