I missed it, I don't see anywhere in this thread where people are being taxed on 'exit' from a state. Nothing is being confiscated. What is happening is that a state increases taxes on the current population, and the rich leave to a cheaper states so they don't have to pay the higher tax. So there is freedom of movement. But this does open a loop whole where they can use up resources, then split.

To your argument. I guess it depends on 'fairness'. Sure, the deep south can 'Choose' to lower taxes and have really bad schools so that their un-educated population will be unaware, and un-questioning, of any risks when they to go work for the local chemical company or paper mill. This is a valid choice, lets make our people cannon fodder to lure large chemical companies to our state, (and bonus get some kick backs). But, the kids didn't choose this, they were born into it. (which maybe is why they are also anti-abortion, we can't loose our workforce).

There should be some national standards to keep some states from a race to the bottom.