Measuring the income and payroll tax burden with emphasis on the effective marginal tax rate

This paper covers the current issue of income and payroll tax burdens on labour. Payroll taxes have had a significant impact on behaviour both in the labour market and economy-wide. Tax revenues and contributions to social insurance schemes are a significant source of government receipts and also an instrument that influences employment policies. This paper focuses on how this burden is measured, using a number of methods on both the macroeconomic and microeconomic levels, emphasising the effective marginal tax rate, an indicator that reflects the income and payroll tax burden on the working population alongside those interacting with benefit schemes. It also provides an assessment of the income and payroll tax system currently operating in Slovakia, with a particular focus on the labour market, and includes recommendations from the authors