Not to mention the infrastructure - The electrical grid is already creaking, and the commuting situation is already absurd in and around the major metro areas.
The US has a federal system. States are the primary entity, not the federal government -- it's the opposite of a centralized government such as France.
Every state just sets whatever policies it wants. They're not "pitted" against each other any more than Spain and Italy are "pitted" against each other. They're just each doing their own thing.
This is all just to say, it's not some intentional policy at the federal level. It's just how it's always been ever since the states chose to come together and form a country. The (original 13) states came first.
(BTW I'm not defending this arrangement, just describing it.)
Those 6A schools don’t build themselves. But you can get Spain’s pension funds to build your tollways. God forbid WFH becomes a thing in TX.
…which is definitely not also the case in California.
> I find it fascinating how the US government pits every state against each other. Yes, people are leaving a high tax state to a low/no tax state.
This is a core democratic mechanism in the US: citizens leaving one state for one which they believe will better suit their beliefs, needs, aspirations, etc. — to “vote with your feet”.
This competition for citizens and business forces governments to respond to the needs of citizens — rather than mistreat them for ideological or feudalistic goals.