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Slovaks Will Work for State Until June 7
Friday 04 June 2010 Zoom in | Print page
Bratislava, June 4 (TASR) - Slovaks will work longer for the state this year than they did in 2009, as the Tax Freedom Day has been postponed from June 3 to June 7, F.A. Hayek Foundation director Matus Posvanc said at a press conference in Bratislava on Friday.
Tax Freedom day is a symbolic point of the year at which employees pay off all their taxes and deductions for the year, and so, figuratively speaking, begin earning only for themselves.
This means that the private sector will produce resources for the state budget, state funds, state-owned insurer Socialna Poistovna and health-insurers, villages, towns and the National Property Fund (FNM) for as many as 106 working days in 2010.
"This has been caused by a higher degree of redistribution in the economy and the Government's lack of will to introduce austerity measures during the crisis. So, the degree of redistribution has gone back to the 2005 level," said Posvanc.
According to the Foundation, the estimated degree of overall redistribution in Slovakia will equal 42.3 percent of GDP this year, with the state redistributing 42 cents out of every euro produced in Slovakia.
"Expressed in working days, it means that Slovak citizens were giving all of their income to the state until June 4, whereas they will begin to work for themselves as of June 7," said Posvanc.
The Association of Slovak Taxpayers along with the F.A. Hayek Foundation has determined Tax Freedom Day every year since 1999.
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