Are you sure?

Only few benefits from flat tax system

The newly introduced flat rate tax system is advantageous only for one-fifths of Hungarian taxpayers, a recently published survey reveals.

The survey, prepared by Medián for the request of national daily Népszabadság, states that nearly three quarters of the respondents would consider a progressive tax system to be fairer.

Less than 20% of tax payers are better off with the tax changes introduced in January 2011. The disappointment can affect the popularity of the government, Népszabadság writes citing the Medián survey, that has been prepared based on a representative sample of 1,200 people nationwide.

The majority of the respondents said that the new tax rules increased the gap between the poor and the rich, and three quarters of them would consider a progressive tax system fairer than the current one. The report says that 52% of the respondents think that the state should rather support those who are living under less favorable conditions – a similar survey brought the same result ten years ago.

However, Medián pointed out that in ten years time people’s opinion has significantly changed about the different tax systems. While 54% of the respondents favored the progressive system ten years ago, now this number grew to 73%. As for the flat rate tax system, 44% thought it fair ten years ago. Now only 25% of the respondents think the same.

The reception of the new tax rules varies based on party preference, however, nearly half of the supporters of the government thinks that the new tax system increases the differences between the poor and the rich.

In the meantime, the government keeps on saying that it finds wage decreases unacceptable, the Népszabadság notes. Government spokesman Péter Szijjártó said yesterday that no one should suffer losses because of the new tax system and promised immediate corrections in case it happens.