Hungary: Taxing work income is high in the region
GDP proportionate taxes burdening work are by far the highest in Hungary among the Visegrád countries, according to the participants of an international trade union conference in Budapest.
This amounted to 19.6% of the GDP in Hungary in 2005 and earlier years, while it was 12.6% in Slovakia, 14% in Poland, and 17.8% in the Czech Republic. All taxing beside personal income tax, such as social security and other fees amounted to total 38.5% of GDP in Hungary, higher than in the Czech Republic (36.3%), Poland (34.2%), or Slovakia (29.3%).
However, the rate of social security out of total taxing was the lowest in Hungary (35.3%), as compared to 36.9% in Slovakia, 40% in Poland, and 41.5% in the Czech Republic. The proportion of personal income tax out of all taxing was 17.1% in Hungary, while 12.8% in the Czech Republic, 11.5% in Poland, and only 9.4% in Slovakia.
Taxes burdening capital on the other hand are the lowest out of all Visegrád countries, representing 4.5% of the GDP, while it is 4.8% of the GDP in Slovakia, 7.1% in the Czech Republic, and 8.4% in Poland. However, even this 4.5% represents increase in Hungary as compared to the mid 90’s (3.5% in 1995, and 3.6% in 1996 and 1997). (Gazdasági Rádió)
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