Bringing back honour to work is at the centre of the government’s 2010 tax package, Prime Minister Gordon Bajnai said in Parliament on Monday.
The government wants to tax consumption and assets to a greater degree, countering a reduction in the tax on labour, Mr Bajnai said. The benefactors of the tax package are those who choose to work and those who provide jobs.
“I want to reward those who are carrying the country on their shoulders today, too,” he said.
The reduction in the tax on labour is “of a size unseen in two decades,” Mr Bajnai said. Next year, nine out of ten Hungarian employees will be taxed in the lower personal income bracket, he added.
The government’s planned changes to the personal income tax system will benefit taxpayers in both the lower and upper brackets, with the exception of those 10,000 people who take home a monthly HUF 2m or more, Mr Bajnai said.
Average wage earners will take home a month and a half more wages next year than this year because of the tax changes.
Mr Bajnai said the luxury tax served social solidarity. “Every bit” of the revenue from the tax will go toward preserving jobs and creating new workplaces, he added.
“Average wage earners will take home a month and a half more wages next year than this year because of the tax changes. ”
Which equates to about 12% wage rise. It’s better than a poke in the eye with a blunt stick but I’m not sure it is enough to truely stimulate the economy. Factor in the 5% increase in VAT and a few more % for general inflation, Gordon is going to have to do a little more to really get things moving.
And as for:
“”Every bit” of the revenue from the tax will go toward preserving jobs and creating new workplaces, he added. ”
Well we’ve only got his word for that.
“Honor???” In a Gordon Bajnai Adminsitration??? I think I’m gonna be SICK!!!!
PUKE!!!! Arghh….. PUKE AGAIN!!!!
Anyhow, considering their workplace performance, Hungarians by and large are already overpaid by a rate of about 72 percent. Now, they are gonna get 12 percent more dough to take home!?
Phew…. Better move our operations over the Viet Nam or China real soon, hmmm!?
Hey Fantron, you make me smile.
Something tells me that your experience of Hungarian work morale will just never compute.
Good for you, don’t give up on the standards and values that you have just because no-one else here has them. You may be outnumbered but you are not mad.
“Mucho trabajo, poco dinero” is for Mexicans.
Hungarians are used to poco dinero, poco trabajo.
(Little money, little work – for those who don’t live in North Mexico, aka. USA).
JD, My Man, you cannot “compute” work morale, but hey, don’t worry: the rest of your so-called “arguments” also do not hold any water, Buddy.
And Godot, U R right. Hungarians would not know how to work if they were hit in the head with a shovel in a wide open field. Even the French have workers’ productivity almost three times as high as the Hunagrians do, and I never considered them to be leading in that category.
In Asia people WORK, and the Hispanics are also strong workers, provided you pay them for output, not per hour.
Come to think of it, which nation or nationality has a LOWER output per worker than your average Hungarian worker has? Anyone, please? Anything at all?
)
And there was me thinking I had found common ground with Fantron.
I’m struggling with the idea of Bajnai wanting to “reward those who carry the country on their shoulders…” As one of those overtaxed, who gets nothing but a kick in the nuts as a reward… and now facing yet more tax for my flat (which is also being taxed as my office space, but whose costs I’m not allowed to deduct), rising costs for utilities, city tax for my office address (registered at my home), 2% turnover tax, no ability to offset the tax wedge here against my US obligations as it’s all “not considered tax” by Uncle Sam… What exactly is this reward going to be? 2 kicks in the nuts?
And he’s a so-called tax expert… I’m wondering if it’s really an expertise of putting tacks on peoples’ chairs.
Don’t forget the “Phone Tax” Rolrox. The most bizzare and deliberately impossible to assess fairly, stealth tax yet.
Was that some greasy twat’s economics PhD thesis or just inspired by years of punitive taxation by arsewipes?
The only strategy Bajnai has employed so far is to fiddle about with taxes.
Twenty five per cent VAT? Oil companies are going to pass on the increase to customers. This will have a knock-on effect and we will find that
we are going to pay more for a whole host of products and services because of the more expensive transportation costs.
There is nothing left in the pot and Bajnai is in the process of selling it…the pot I mean!
Bajnai and his cronies need to bow out now before they do any more damage.
And, let us see a manifesto detailing a reform programme for Hungary from the various protagonists before we rush to the polls in our “anxiety” to get rid of the MSZP.