I don't think it's a bad idea in isolation, I'm just not sure it's a solution to the current problem. The race to the bottom that struck me is competing on being the place where the magic profit fairy makes her appearance.

I think both solutions would probably be great - fix the glaring problem that multinationals can avoid corporation tax though legislation (where local and national firms can't), AND then try to maximise take (and employment and all those other good things) by adjusting tax levels.

Sound good?

--edit-- if his is broadly in line with what you were saying from the word go then sorry for being an argumentative arse. Need more sleep...