Abstract
An important part of the government revenue needed to cover state expenditures comes from tax revenues from labor taxation. Revenues obtained by taxing the income of employed individuals, consisting of income tax and compulsory social contributions, contribute to strengthening the sustainability of public finances and play a significant role in redistributing economic growth across different segments of the population and creating equitable societies. A high tax burden can have negative effects on employment and labor market competition. The paper assesses the level of labor taxation in Romania and in some neighboring countries that apply a personal income tax regime similar to that of Romania (Bulgaria, Hungary) and in some countries in the region economically close to Romania, but with a different labor tax regime (Czech Republic, Poland).The tax burden on labor is analyzed using statutory personal income tax rates and social insurance contribution rates paid by employees and employers. For a better picture of the attainment of the objectives pursued through taxation, the share of labor tax revenues in total tax revenues and in GDP is highlighted.