THE IMPACT OF THE LABOUR TAX BURDEN ON THE LIVING STANDARD OF THE INHABITANTS OF LATVIA

Abstract

The standard of living of the inhabitants of Latvia, especially in the context of material well-being or disposable income, is a guarantee that the inhabitants will be able to meet their basic needs, which are important for ensuring an adequate standard of living. Inhabitants ensure their material well-being mainly by working and receiving a net salary, which is paid after the calculation and deduction of labour taxes. However, the state is essentially the same inhabitant, which has its own basic needs, the financing of which requires income, which is mainly obtained after the collection of certain taxes, which accordingly reduces material well-being or disposable income of the inhabitants which is an essential component of the standard of living.

The goal of the research: to investigate the impact of the labour taxes on the standard of living of the inhabitants of Latvia. The research uses general scientific research methods: the method of monographic or descriptive research, the comparative analysis method, an expert   survey, data grouping, and the graphical method. Authors of the paper believe that employees employed in Latvia should be encouraged to use the possibilities of gross salary relief, thus promoting the growth of their net salary. In order to raise the living standards of the inhabitants in the short and long term, the government of Latvia and local governments must emphasize their attention to the growth of the national economy. The government of Latvia and local governments must implement measures aimed at raising the long-term living standards of the population and gaining material benefits in the future.