Hungarian tax burden skyrocketing
Hungary is still in the top three concerning the taxes and contributions among the countries of the Organization for Economic Co-operation and Development (OECD). According to the recent analysis made by the organization, the Hungarian state receives 48.2 percent of the gross incomes without family discounts. The only two countries with higher tax wedge are Belgium (54 percent) and Germany (49.4 percent), as Magyar Nemzet Online reports.
The Czech Republic is the closest to Hungary from the region in this respect: they rank eight on the list with 43 percent rate of taxes and contributions. The other two V4 countries, Slovakia (41.5 percent) and Poland (35.8) are the 12th and 23rd, respectively. The lowest tax wedge is in Switzerland, where only 21.8 percent of the gross income goes to the state. Among the EU countries, the Republic of Ireland ranks the lowest with 27.1 percent.
Hungary’s situation is somewhat better concerning the family discounts: married couples with at least two children have to contribute with only 33.7 percent of their income. Hungary is the 11th on this list, even though the country is still below the OECD average of 26 percent. The other three V4 countries have more favorable ranks by three to six percent.
Besides percentage, OECD also examines the exact sums spent on taxes: while an average employer in Germany, Switzerland or Belgium provided 74,000 thousand dollars (62,352 euros) for the state in 2016, Central European countries were about half as “profitable”: this sum was 32,930 dollars (27,746 euros) in Hungary, 34,700 dollars (29,238 euros) in the Czech Republic, 31,930 dollars (26,904 euros) in Poland and merely 30,000 dollars (25,278 euros) in Slovakia. The average among the OECD countries is 36 percent, which means 50,000 dollars or 42,130 euros annually.
Another study by the organization, which was published in July, concerns how each country used its resources in 2015. The rate of state investments and GDP was 6.7 percent, which is twice as much as the OECD average. 17.3 of public expenses belonged to the “economy functions” category, which is the highest among the OECD countries. The average of the whole organization was 9.3 percent. Economy functions cover for example employment and traffic development. Hungary shows an increasing tendency in this field compared to the data from 2007, while most of the examined countries stand still. The average sum compared to the GDP was 18.7 percent in the OECD, while Hungary only spent 10.6 for this purpose. A similar percentage was spent on public education. It is also below the average. Moreover, this rate was above 17 percent in countries like Iceland, Switzerland, and Israel. 29.9 percent was spent on social support in Hungary, while the OECD average was 32.6 percent in this field.
ce: ZsK
Source: Magyar Nemzet Online
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4 Comments
This doesn’ take many things into account. It’ not only high national tax, but also outrageous VAT tax, gasoline tax, communications taxes and a cost which is not a tax, however contributes to overtaxation is the fact that around 85% of Hungarians live in inefficient homes and flats built before 1990 which require 3X the fuel to heat during winter.
Even though this website is oppositional (leftwing/Jobbik leaning) you should at least get the headlines correct. The Hungarian tax burden has decreased both last year, this year and will so even next year. “Tax burden skyrocketing” is therefore factually incorrect.
Also worth mentioning is that the Hungarian social contribution taxes are five percentage points lower this year compared to 2016, which is the year the data for this report is based on.
In addition, you can work hard diligently, if you dont have money, you simply remain a slave. Especially if you are a poor but an intelligent woman. They will let you make the hard work and then the multinational companies take out the profit from the country. In return we eat the overpriced thrash from the EUs garbage bin. Before joining the EU, we had the best quality food. Now we cant even eat good.
I hope this unfair tax (+27 percent VAT) will disappear from this world. But most of us wont survive this slavery anyway, and our pension wont be enough even to starve. If we would let in the refugee-disguised african soldiers, we could as well simply give ourself a headshot.
@At all the above,
People!!
In real estate there is something called, LOCATION! LOCATION! LOCATION! when deciding where to buy or live.
In Business, there is something called, UNIONS! UNIONS! UNIONS! (or ORGANIZED LABOUR!!) when deciding where and who to work for.
Stop bitching, call or create a UNION and organize yourselves with educated finance, labour, ethics, benefits, and other required representatives. The British could do this over a hundred years ago, you can start it now too. Always when there is a greedy side, you need negotiators to handle the fairness of the masses, but you have to stay on top of them always too!!!