Taxation of Personal Income and Comparison Between Slovenia, Austria and Germany

People seek employment for various reasons. Because we have certain needs and wants, we have an interest in earning the highest possible salary. A comparison will be made between three selected countries.

Problem

People seek employment for various reasons. Because we have certain needs and wants, we have an interest in earning the highest possible salary. The desire for the highest possible take-home pay is most prevalent, rather than how much we actually earn and how much in contributions and taxes we pay to the state.

Despite the fact that we benefit from these advantages or will benefit from them in the future, we do not like giving a certain portion of our earnings to various funds (health, pension, tax), because we do not know whether social transfers will be utilised or not. Whilst some do not use them, others use them to a greater extent. It is good that the regulation of this limited area is prescribed by law, as these benefits can also be used by those who would otherwise not be able to use them.

On the other hand, what bothers us most is the wastefulness of the state, misguided investments, various scandals, where we can obtain information about how much money is allocated or spent on matters or people who are not entitled to it, but rather profit at their expense. The diploma thesis will present personal income and its taxation.

Solution and Method

A comparison will be made between three selected countries. The starting point will be the same gross salary, whilst the focus will be on net salary, the burden of salary with levies and the employer's cost.