Your extrapolation is diversion. And we already covered it. The issue isn't states having different tax rates. It's states offering different tax rates to different companies. Did you forget already?
What's the difference? If my state is drawing more companies to my state because our tax rate is lower than your state, whats the difference if they do that with individual companies?
If your state draws more companies with a lower tax rate, the cost of doing business there will increase. Land will get more expensive, it will be more expensive to lease a building... Eventually any benefits from lower taxes will be eaten up in other costs. There are many reasons why states with the lowest taxes aren't all economic juggernauts. Look at California, it is by far the largest economy. Do you think they have the lowest taxes? You really put way too much into this tax thing. Is Amazon going to put their OH distribution in CA?
If every company in the state gets the same tax rates, government is not picking winners and losers.
However if each state has different tax rates, then the governments are picking winners and losers.
Now if what you say is true (which is completely false) of all these expenses going up because businesses are moving to a certain state, then what's the problem? You should encourage states to offer abatements because it will ultimately lead to their own demise.
You see, even you don't really believe what you say.
Yes, California does attract businesses which was my earlier point: they have the weather in their favor. However many businesses have left because of their high tax rates. They moved to Texas.
If anything, the cost of doing business decreases because businesses interact with other businesses. It's my line of work. I pickup parts from one company to deliver to another company that does certain processes. It's either de-burring, paint, e-coating, machine work, assembly, just a list of things.
It's cheaper for a company to send those parts to another local company than it is to ship it several states away.