Unfortunately, the competitiveness of Latvian entrepreneurs in the region is weakened by the high burden of labor taxes. The social system in Latvia is also not stable. Every year, students of the Customs and Tax Administration program of Riga Technical University focus on labor tax problems in their research. In this discussion, associate professor Māris Jurušs and assistant professor Justina Hudenko discuss students' insights and possible solutions to reduce the negative impact of the tax wedge on competitiveness.