What does this even mean? The tax money moves to another state, so it’s being spread out.

Unless the $2T moves to Texas Banks and trades on Texas exchanges (are there any?), The $2T stays where it is and so is irrelevant to the story, just there for the click baiting.

Nothing in the article suggests the $2T moves. At most it suggests at least some of the jobs managing it will, but that's not the same thing.

It is about race to the bottom - which state taxes corporations at the lowest rate, or has other corporation friendly laws. There is a reason why huge number of businesses are incorporated in Delaware, a state with a minuscule population of about 1 million. NYC by contrast has 8.5M.

The residents of Delaware perhaps benefit in some minuscule way, but the money isn't being spread out.

I think this is a deeper point that really gets to the heart of what's happening. If you or a corporation have some money, where does it reside? Unless the money is in something tangible (briefcase of cash, gold bullion, or real estate), it doesn't really reside anywhere. On the other hand, you do, which is what determines your tax liability.

An individual’s tax liabilities are different than a business’ tax liabilities, which are mostly dependent on where the services are received. Even independent contractors are subject to market based sourcing rules for determining tax liabilities, similar to how a store without a presence in your state still has to collect and remit sales tax to the jurisdiction that the item was shipped to.

Do you have links to read up on this? I know only if personal finance; makes sense that it's not correct for corporate.

I am not an expert either, and it seems each state has different rules. Searching some variation of “market based sourcing rules for income” should bring up relevant results.

For reference, the method used before was typically called “cost of performance”.