High labor taxes among reasons for Slovak brain drain

One reason for the brain drain from Slovakia is relatively high labor taxes, said the fiscal responsibility council RRZ. The government will increase them further from January: the basic deductible will shrink and two new income tax brackets of 30% and 35% will be added for salaries above €5,875 and €7,302 per month. With a gross salary of €5,875, the marginal tax rate is 56%, leaving the employee with only 44 cents for every extra euro earned. This reduces motivation to work. Slovakia, on the other hand, has relatively low taxes on capital and property.

(RRZ)