Hungary govt of ‘tax cuts’ will not ignore snags of global minimum tax
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Introducing a global minimum corporate tax poses challenges that Hungary’ government, which is committed to a policy of tax cuts, “cannot ignore”, Foreign Minister Péter Szijjártó said on Wednesday in Madrid, after talks with US Secretary of State Anthony Blinken.
Speaking on the sidelines of the NATO summit, Szijjártó said low taxes on jobs and companies boosted competitiveness, and Hungary had proven this ever since introducing the lowest corporate tax in the EU, breaking investment records year after year.
Tax hikes would have “tragic consequences” in the difficult situation the world and the European economy finds itself in, and would threaten tens of thousands of jobs in Hungary, he said. The global minimum tax would cost Hungary its competitive edge, he added.
Meanwhile, the minister said NATO’s new strategic concept adopted at the summit earlier on Wednesday confirmed NATO as a defence alliance with nuclear resources at its disposal.
“Hungary’s government … committed to a policy of tax cuts” …
Let’s call B///S/// on our biggest money spinner, VAT: consumers pay a tax (in our case: a whopping 27% – Europe’s highest, World #4) on the products and services they buy based on the value of the product or services.
VAT tax is what is known as a „consumption tax”, as the bill is paid by the final consumer („our Families!”) — NOT businesses.
Business can generally recover the VAT they pay, and add VAT onto their fees and prices as an additional cost which they collect on behalf of the government.
No wonder we can offer a 9% corporte tax rate to businesses! Easy if consumers (“our Families!”) pay 27% on top of most products and services they use, right?