Tax Wedge
I have been harping on about for the past few weeks on taxation in Hungary, as Eva Balogh, inanely, seems to think that Hungary is under-taxed!
See my comments here and herefor some flavor.
Clearly, Eva doesn’t understand two very important things:
1) Taxes, incentives and economics
2) Hungary
Let’s see what RealDeal.hu has come across:
Among OECD countries, Hungary imposed the second highest tax wedge – including income taxes and social security charges – on a single person earning average wages last year, behind Belgium and ahead of Germany, according to the OECD’s latest annual study on taxing wages.
The tax wedge is the difference between an employee’s net take-home pay and the cost of their employment, including income taxes and social-security contributions.
Hungary is 2nd. Who benefits from this? Not businesses. Not consumers. Not employees. The Hungarokrata benefit.
Not that I ever had any doubt in myself, but I stand vindicated, for lack of a better term. I will repeat, once again: Hungary has too-much-tax-and-spend-even-fucking-more problem. Combine that with the upcoming Hun. demographic meltdown and you realize something. Namely, Hungary is fucked.
