(Not OP)<p>&gt; In your hypothetical, companies have a strong incentive to start in countries that have strong infrastructure and services (safety nets to reduce risk for founders and early employees, higher-education to ensure a supply of educated workers, etc), then move to a low-tax jurisdiction once they are successful.<p>In this hypothetical, governement will know that a company will migrate away once it find a better one. This will be reflected in how gov&#x27;t will charge. It will probably mean the end to &quot;% of income&quot; based taxes instead fixed taxes.<p>Think of government as a corporation providing some services because that what it will be once movement and &#x2F;citizenship&#x2F; becomes easy. The people who stay (i.e. actual citizens) will play the role of shareholders and (hopefully) will be more critical of their goverment.