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The Tax Misery Index
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The horror… The horror…

Every year Forbes releases its annual “Misery Index” to measure and compare tax burdens around the world.

You’ll be happy (or unhappy) to know that Slovenia can tax with the best of them. It’s ranked 13 out of 50 countries worldwide, with a total misery score of 132.2. The world champion last year was France. (See the chart here)

With regard to eastern European countries, Forbes writes:

Individual and corporate income tax rates are competitive, with the exception of Slovenia with a 50% top individual tax rate and quick progressivity.

As a matter of fact, if you are married with two kids and earn 50.000 euros/year, the worst place to live is Slovenia. It’s one of the rare places where almost half of your salary is lost to taxes. Look at this:

Country Gross Salary Employee Social Security Income Tax Net to Employee Net to Employee as %
Slovenia 50.000 11.050 12.452 26.498 53%
Slovakia 50.000 1.143 16.191 32.666 65.33%
Germany 50.000 9.833 4.842 35.325 70.65%
China 50.000 1.006 9.598 39.396 78.79%
USA 50.000 3.825 4.149 42.026 84.05%
Russia 50.000 0 6.500 43.500 87%
(source)

If you look at the complete chart (PDF) you’ll see that Slovenia is number one in this particular discipline. The only countries that even come close are Hungary and Israel.

Posted on Wednesday, March 3, 2004 to Slovenia

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