Social Sciences
8 years ago

Tax competition in Eastern Europe sparks race for capital with positive outcomes.

RePEc: Research Papers in Economics
Steuerwettbewerb in Mittel- und Osteuropa: Eine Einschätzung anhand der Messung effektiver Grenzsteuersätze
Volker Treier

Paper Summary

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The article discusses how countries in Central and Eastern Europe are facing a dilemma between lowering taxes to attract investment and needing revenue for infrastructure. By analyzing tax rates and fiscal data, the researchers found that there is a competition for capital through tax cuts, but it hasn't necessarily been harmful where it's been most intense.