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Cap on health contributions proposed

Socialist MPs have proposed putting a limit on the amount of healthcare contributions paid by private individuals as part of an amendment which would introduce a special 4% healthcare tax on extra-wage income, such as capital gains, dividends and income from rent. The introduction of the 4% tax on extra-wage income is intended to replace employers' fixed monthly healthcare contributions, which are being halved in November 2005 and phased out a year later. While the original amendment applied the special 4% tax, known by its Hungarian acronym "eho", to all extra-wage income, the new proposal would limit total healthcare contributions per private individual to an annual Ft 400,000. (Econews; Nb 4, Thurs Vg 3)