Spectator on facebook

Spectator on facebook

IFP: Tax system favours families with children

SLOVAKIA’S taxation system favours families with children, while the burden on labour has undergone only slight changes since 2004.

(Source: Sme )

The tax burden on labour varies depending on the family status and income of each individual, the Institute of Financial Policy (IFP), a government think tank, writes in its Tax Report for 2015 published on November 9.

“This is, to a large extent, influenced by levies, especially those paid by employers,” the report reads as cited by the TASR newswire.

The burden of taxes and levies accounts for 43 percent of direct labour cost, while the rest remains with employees as their take-home salary.

“To a great extent, the Slovak system of taxation and benefits gives preference to families - to the detriment of individuals,” the report reads. “The presence of the ‘tax bonus’ and family benefits significantly reduces the burden faced by families with children as opposed to individuals.”

One of the greatest challenges to be faced by Slovakia in the future will lie in easing the burden imposed on low-income people.

When contrasting Slovakia with fellow Visegrad Four countries, it transpires that in both Slovakia and the Czech Republic, an individual having children and a spouse results in a lighter tax burden.

“In Hungary where there is flat tax rate, taxpayers face the same tax regardless of the amount of their income,” said the IFP.

Having dependent children does reduce one’s taxes in Hungary, but being married has no effect on the tax burden. Poland, meanwhile, has a moderately progressive taxation system.

“Children, but not the marital status, do have an effect on the burden,” reads the report.

Top stories

Enough of Smer, people chanted in streets Video

Government resignation is not enough, the crowd called for early elections. This is how it looked like in Bratislava on March 16.

Fico fell. These are good, not perfect, developments

Unlike Kaczyński’s case there are two other parties in the coalition with Smer who can still bring the government down at any time.

Media are the ultimate frontiers in defending freedom in society today

Miklós Haraszti’s keynote speech at the Budapest award ceremony of the European Press Prize, March 14, 2018.

Fico is going. So why does the crisis continue?

These 10 answers will help you understand why the coalition’s decision to rebuild the government from scratch does not satisfy the critics and protesting masses.

Most-Híd chair Béla Bugár comes to the Government Office, March 13.