Is tax competition bad?

EU enlargement was meant to be a cause for celebration. But one seemingly esoteric issue is threatening to spoil the fun: taxation. West Europeans fear that low tax rates in the new member-states will lure companies eastward, taking jobs and investment with them. To add insult to injury, the richer EU countries complain that - through their contributions to the EU budget - they will end up paying for tax cuts in the new members.

• Primary Source