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Business association supports PM's economic plan, wants more tax cuts

The board of the Hungarian Association of Industrialists and Employers (MGyOSz) welcomes certain elements of an economic stimulus package proposed by the prime minister last week, but taxes could be reduced faster if the resulting loss in revenue was matched by budget expenditure cuts, MGyOSz said.

MGyOSz 's board, which discussed the program earlier, stressed the importance of proposals to set up a safety fund to cover the Ft 300 billion in tax cuts in the first year of the program as well as to simplify the tax system. They voiced their support for plans to develop vocational training and organize a crackdown on the shadow economy, which would generate revenue to cover the tax cuts.

Prime Minister Ferenc Gyurcsány conceded the proposals are a compromise between stimulating economic growth and ensuring social security and the healthy operation of the state while maintaining the budget balance. The proposals would give employees Ft 80,000 per year in payroll tax savings. (MTI – Econews)