But it goes even further. In Germany, due to the former divide of the country, lots of big companies like Siemens or Osram have left the state where they were f

But it goes even further. In Germany, due to the former divide of the country, lots of big companies like Siemens or Osram have left the state where they were founded and moved to somewhere else. Because corporate tax is paid on a federal state level this means to now many more of companies pay their taxes for example in Bavaria and less so in for example Berlin. So in theory you would also need to have companies pay money on a federal state level (or be distributed somehow "equally" by a central government). In Germany we have whats called a "Länderfinanzausgleich" that redistributes some of the money between states even though that is highly controversial.