True enough, having a lower tax rate than others provides a competitive advantage.
The US has to compete also. We currently have higher corporate tax rates than many countries.
In general, people and companies try to avoid taxes. This can be done through relocation. If I remember right Bjorn Borg and the Beatles either left their home country, or threatened to over taxes. Companies can incorporate in another state/country, relocate offices, shift work to foreign subsidiaries, subcontract, etc. for various reasons, including reducing the tax bite. Relocation is just one of the ways one can avoid taxes.
What happens if high taxes are inescapable? The American slave had a reputation for being stupid and lazy. The collectivized soviet farm worker had a reputation for being stupid and lazy. In each case, there was little positive incentive to work. I think each demonstrated shrewdness in coping with their respective form of slavery. They put their minds to work, to avoid work. Why do your best for others, if it doesn’t pay?
The American slave, oddly enough, didn’t have a reputation for laziness, back in those days. People were willing to pay huge amounts for a sturdy slave. IIRC in the 1850s we are talking median present day prices around $100,000.