In 2008 Hungary continued to deduct the second highest labour taxes from employers and employees within the OECD, the Paris-based organisation said in its recent survey disclosed on Tuesday.
Belgium topped the list with 56.0 percent, followed by Hungary with 54.1 percent and Germany with 52.0 percent. The OECD average was 37.4 percent last year.
In 2007 the same three countries topped the list in the same order: Belgium had a rate of 55.5 percent, Hungary 54.4 percent and Germany 52.0 percent.
Parliament voted on Monday to adopt a five percentage point cut in tax on labour effective as of July.
Well no surprise there!
It’s too bad the 5% cut in labour costs are restricted to 2x the minimum wage and that none of this will be passed on to the individual.
Hungary once again, re-affirming its position as Europe’s economic basket case.
Yes, the cut should apply to all employees. And probably both to employer and employee payable taxes – SMEs in Hungary need all the help they can get, and putting more money back into employees pockets might also have a positive effect on consumption.
John, who are you exactly, PM Bajnai’s chief woodoo economist? You must have proposed the latest 25% consumption tax for the country, right?