[pjc50]

You can't have tax competition and freedom of movement of companies, goods and capital. It's the tradeoff in the EU for removing all protective internal tariffs.

(The US avoids much inter-state tax competition through federal taxes)

[Amezarak]

The US has tons of inter-state tax competition; federal taxes just comprise the base rate, not the total taxation rate. State governments fall all over themselves to offer special incentives for companies to come in. Or stay, in some cases - a local employer has been here almost 80 years, yet the state and local governments still feel they need a massive multimillion dollar tax break or they'll pick up and leave.