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In the tax systems of the EU Member States there is a gradual shift of the tax burden from direct to indirect taxes, which should result in the reduction of the tax burden of natural persons and legal entities. But the burden on economy by increasing the indirect taxes leads to the increase of prices. Different states have a different tax structure as well as the level of taxation depending on the economic decisions of the national government. Our intention is to compare the taxation of natural persons´ income in the selected EU countries, to examine the diversity of the tax burden, to find out the level of average wages in the particular Member States and on the basis of the obtained data to predict the long-term convergence of the average wage reached in the Slovak Republic (SR) in 2013 to the average in the EU Member States. DOI: 10.5901/mjss.2015.v6n3s1p77

Paper focuses on public revenues of municipalities and analyses the importance and significance of local taxes for the Slovak municipalities. Eight municipalities representing the capital cities of higher territorial units in Slovakia were selected. The aim of the paper is to estimate relationship between two tax decentralization measures (local tax income / current revenues and local tax income / total revenues) on one side and number of the citizens, city unemployment and average salary on the other one. We aim to determine and examine the importance and significance of local taxes for the municipalities. Hypothesis: The share of local taxes on total incomes is above 20%. The overall analysis and conclusions were provided for the period 2010-2013. We used three different methods to reach objectives: synthesis of information to give literature background, analytical methods with econometric models to calculate data, and comparison of obtained results. Recommendations of future actions for municipalities are also included. DOI: 10.5901/mjss.2015.v6n3p544