Czech or Slovakia

From the Prague Post: Czech or Slovakia “Low taxes and a cheap, available labor force are making Slovakia more attractive to foreign investment.” It sounds like Slovakia is (with good reason) eager to take advantage of those factors to try to attract more business. I worry, though, about designing a tax system around attracting business. American cities and states have often taken that path with good intensions without analyzing the true costs–for instance, the negative cost of giving a tax break to a company in order to attract it to the area. The taxes lost in the deal often outweigh the job gains.