Do we have to fear tax competition among “new” and “old” European countries?
Résumé
The purpose of this paper is to study both theoretically and empirically
tax competition in the enlarged EU and to provide some
insights on ongoing reforms concerning business taxation. We support
the idea that even if one can observe cuts in “new” members
statutory business tax rates, this should not result in fiercer tax
competition between the “core” and “the “periphery” since infrastructure
endowments and the existence of agglomeration rents in
the core of the EU may prevent (at least partially) activities to relocate
to the “new” members.
tax competition in the enlarged EU and to provide some
insights on ongoing reforms concerning business taxation. We support
the idea that even if one can observe cuts in “new” members
statutory business tax rates, this should not result in fiercer tax
competition between the “core” and “the “periphery” since infrastructure
endowments and the existence of agglomeration rents in
the core of the EU may prevent (at least partially) activities to relocate
to the “new” members.