Tax competition in the European Union

Taxpayers can move to locations where taxes are lower if one national government imposes high taxes. This can give rise to tax competition,which appears to be an intractable problem in the European Union (EU). Tax competition means that tax revenue drops in the world as a whole, but individual states can benefit. There are similar dilemmas in other areas of regulatory competition in Europe. Neoliberal economics tends to focus on relative gain rather than absolute loss.