Even better than bringing all corporate taxes down to the lowest rate; force tax havens to bring the lowest rate up to something reasonable. A global economy demands global rule of law. Then, yes, market forces can be used to direct corporate citizenship (and therefore employment+tax revenue) to where it is needed (assuming sufficiently far-sighted governance to realize the global equivalent of Ohio needing more federal assistance than California, and also robustness to regulatory capture).
Your race to the bottom would only ensure that governments eventually cede all power to multinational corporations. Then, we're back to feudalism, only global this time.
> force tax havens to bring the lowest rate up to something reasonable
Easier said than done. Not going to happen any time soon (or ever, in my opinion).
> Your race to the bottom would only ensure that governments eventually cede all power to multinational corporations.
If corporate taxes are the only thing standing between where we are now and the downfall of governments or the rise of global feudalism, we're already screwed. The corporate tax rate could be 0, and it really wouldn't make that big of a difference in terms of total tax revenue or government power (individual taxes still make up the vast majority of tax revenue).
Your race to the bottom would only ensure that governments eventually cede all power to multinational corporations. Then, we're back to feudalism, only global this time.