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Index – Economy – MSZP calls for progressive taxation

Index – Economy – MSZP calls for progressive taxation

The MSZP supports a tax on personal income, Bertalan Toth, leader of the party faction, announced on Tuesday, MTI reports.

Citing their programme, Bertalan Toth said they would make the minimum wage tax-free through the tax credit, because “it should no longer be taken from the smallest salary”. He emphasized explaining the details of their idea

Between the minimum wage and the median wage, the tax rate will rise to 15%, while the tax rate for those earning between five times the median wage and the minimum wage will remain at 15%.

Those whose total salary exceeds five times the minimum wage must also pay a 10 percent solidarity contribution for the amount more than five times the minimum wage – and the opposition politician has put forward their proposals.

The MSZP will restore the pension contribution ceiling, that is, it will end the payment of pension contributions after income exceeding this limit. Bertalan Toth said that since there would be no pension higher than the pension ceiling, this system would reduce the current disparity between old and new pensions.

The MP explained that the party will also impose progressive taxes on capital income, so that they will be subject to a higher tax rate than labor income, while the profits tax system will also be divided into bands.

The MSZP will abolish the system under which the largest Hungarian companies practically do not pay profit tax, and thus the corporate tax will be raised to 15 percent, of which only small and medium-sized enterprises will receive a targeted relief.

At the same time, the party recommends that companies distribute 3% of the 15% corporate tax equally among their employees as a share of profit.