Your thought experiment already alludes to this: states can compete. If anything, the only thing that was “really” lost, practically, is the difference between

Your thought experiment already alludes to this: states can compete. If anything, the only thing that was “really” lost, practically, is the difference between WI and the second best offer. There is no way a company with choice would ever go for a state which unilaterally put its foot down. You need an authority to say: no more credits. Or to otherwise put a quota on credits. That would balance things out. But until they do, it’s a tragi-economic race to the bottom. Nash equilibrium and all that :(