Sub-central tax competition is when different areas compete to attract businesses and individuals by offering lower taxes. Some believe this competition is good because it can lead to better public services and prevent excessive taxes. Others think it can create problems like uneven tax rates and less money for services. The study found that taxes on things like income are more competitive than taxes on property or goods. Wealthier areas tend to have lower tax rates. There isn't strong evidence that tax competition always leads to lower taxes overall. Countries with more tax competition tend to have less variation in wealth between different areas. To address concerns about excessive tax competition, governments can adjust how taxes are shared between areas, increase property taxes, or make tax rules more similar across regions.