The article discusses how different countries in the European Union decide on their tax policies, which can affect economic growth and influence other countries. Each country sets its own tax system, leading to competition between them. It is important for tax systems to be fair and transparent to avoid negative impacts on tax revenue. Tax reforms are common, especially after new countries join the EU. The study focuses on direct taxes in EU member states, with future research planned on indirect taxes. The goal is to understand tax competition and harmonization in the EU.