Some evidence indicates that when large national companies relocate or decide where to build big expensive manufacturing plants, taxes do play a role. On the other hand, there is lots of evidence that in cases of high technology firms the taxes do not matter. When you add it up, the effect of taxes on business is infinitesimal at best. The question is whether any of this has anything to do with causality. There is very little evidence that the aggregate level of state and local spending has very much of an effect on economic growth, nor should it.
Consumers get benefits from state and local services.
They are not just paying taxes. If you leave Arizona and go to New York or Boston you will pay more taxes, but you will also get many more services. You get what you pay for. For consumers that is important. For businesses, it is not.