Kogumaksumust

Kogumaksumust is a term in public finance that refers to the total tax burden imposed on a party, such as an individual, a household or a firm, by the government. It encompasses all compulsory payments to the state, including taxes, social contributions and other mandatory charges, regardless of their specific labels. The expression often appears in the genitive form, kogumaksumust, meaning “the total tax burden.”

The concept can be studied in different ways. A common measure is the tax burden as a share of gross domestic product (tax revenue divided by GDP), which compares the size of the tax system relative to the economy. Another approach is the labor tax wedge, which estimates the pre-tax to post-tax difference for a typical worker and reflects how taxes and transfers affect employment incentives. Kogumaksumust can be evaluated for a particular income level, household type, or for the entire economy, and it can be assessed on statutory rates or on actual payments after deductions and credits.

Components typically included in kogumaksumust are direct taxes (income tax, corporate tax, wealth or property taxes), payroll or social contributions, and indirect taxes (value-added tax, excises, customs). Other mandatory payments and fees, plus exemptions and tax credits, influence the effective burden. The concept is used to analyze fiscal policy, equity, and competitiveness, and to compare tax systems across countries. Interpretations should account for differences in tax bases, exemptions, and transfer programs, which can significantly affect the realized burden despite similar statutory rates.