The counter-point to race to the bottom, is this is an important aspect of pressure in a democratic capitalism to prevent government as a leviathan. The government has a natural incentive to want to raise more revenue, and increase power. A strong market that can stifle these, at times potentially inefficient taxes, can provide a natural check on this.

Obviously the truth is that there are bad aspects of a race to the bottom as well as positive attributes. Finding the balance requires nuance and grace by the leaders who navigate these uncertain waters.