What would happen if governments and States had to compete with each other for their 'tax payers', like companies for their clients?

Forget about location, borders, or anything like this.

Would anyone choose to be ruled by their current government under these circumstances?

Would any socialist/communist government survive a free market?

Well, obviously not, people died trying to jump the wall from USSR to the west.

But what about not-so-extreme cases?

My bet is that governments that offered the least but charged 'the least' or next to zero would be the free market winners.

Then, maybe someday, there would emerge a government where there is no Government, where you can be truly free.

Maybe that's why there is no Government Free Market because if there was, there would be no government at all.