I realize I'm entering this thread a bit late, but I want to address something that disturbed me in the OP.
Do you really think corporations compete because they want to? Competition means other corporations stealing what could have been your profits. No, they compete because they need to - if you're in a burning building and want to get out before it collapses, you might have to suffer a run through some flames, but you'll do it. And more taxes does, in fact, increase competition, because the money pool to compete for is smaller and they need to work harder to get the same amount.
The only issue with this comes from foreign competition, but it comes entirely because their taxes are lower. My point is that I can't see how taxes don't encourage, or more accurately, force competition (as very few large corporations will deliberately make business more difficult for themselves if there was any way to avoid it happening).
Could you care to explain this to me?
