Harmful Tax Competition

The EU seems to be bullying Luxembourg once again, over the issue of tax.

European Union regulators said on Wednesday that they would investigate Luxembourg's tax exemptions for multinational companies, saying they might offer a disguised subsidy to attract foreign investment.

What next, they will investigate whether not forcing workers to work less than 40 hours per week is a subsidy. Look for investigations into the wags paid in Eastern Europe, a clear subsidy if you ask me. Why can they not just accept it? Low taxes make sense.