Tax at the end of the day is just another cost for any business of significant size. Often the largest.
But in this case, we're not talking about business. We're talking about the funding to pave our roads, run our schools, be able to fight fires, and all that other good stuff we need.
The gov't is well within their right to change the tax code as they see fit. And they do all the time. It's not like we're seeing tax receipts declining. They've done nothing but increase over the last 100 years.
The "race to the bottom" is the reason why free markets are so prosperous. Each business independently works to reduce costs and competition forces companies to share those savings with consumers.
The best example of the "race to the bottom" stopping are monopolies (often gov't supported) like Comcast where they can sit fat and happy raking in a ton of profits and telling consumers to shove it.