Competition yes, but healthy? Only if you think taxation is all bad, and government should be as small as possible, period. It is a race to the bottom.
Personally I believe that healthy is when there is a power balance between democratically controlled government and privately owned business. They should be about equal in power. In many western countries, especially the US, the power balance has shifted completely toward business. Business can dictate law and make governments compete with one another for their money.
This is obviously the wrong way around, it undermines democracy (aka the people) and benefits business owners (aka the rich). Business should compete with another, governments should set rules for their markets. If a country votes for high taxes and generous public services, this should be priced in by business, not undermined and circumvented.