At Estonian taxpayers can now assess their personal tax burden. The calculator takes into consideration all personal expenses and income that influence the tax burden.
“We are used to looking at income tax  alone, or talk about the general tax burden of the state as ratio of GDP”, the portal developer Hille Hinsberg from Praxis says. “The current calculator takes into consideration taxes paid by the individual, as well as their employer (social insurance taxes) and taxes related to consumption,” she explains.
“When we consume, we pay the VAT. When we pay for electricity, buy alcohol or tobacco products, we pay an additional excise tax. So a person’s income and the costs related to consumption are taxed at least twice and sometimes even three times. All these taxes combined form the real tax burden,” says the expert.
In order to calculate the tax burden, one should insert the personal income (incl salary, dividends or pensions and estimate expenses related to consumption. The calculator then shows the individual tax burden based on the expenses and income, as inserted into equation.
“In return, we receive public services“ those are stipulated by laws and decided upon by the Government and the Parliament. The calculator shows how the taxes we pay are used in policy cost areas in the state budget,” Hinsberg says. Each tax payer can get a picture on his or her contribution how the tax sum is spent on national defence, education, social care and other areas.
The calculator is part of the portal developed by Praxis. The aim is to provide an easy-to-understand overview of the state budget that lets people see how much money is spent during one year and what are the sources of revenue in the is supported by the Open Estonia Foundation.