All people earning below 280,000 forints (EUR 900) a month before tax would “do well” out of changes to the multi-bracket income tax system proposed by the left-of-centre Unity opposition alliance, a senior alliance politician said on Monday. Bence Tordai, a member of the board of the Dialogue for Hungary party, said the alliance, should it win power, would only increase income tax for people earning twice the average wage, or the top 8-10% of earners. He added that the top tax bracket would be below 30%. Tordai said part of the funds from the public works scheme would be diverted to programmes supporting job creation. László Varju of the Democratic Coalition said the minimum wage would be taxed at 8%. Between the 8% and top bracket would be a 16% rate. A “solidarity tax” would be added on top of the 16% rate for pay above 450,000-460,000 forints gross. In other words, pay that is twice the average would be taxed at 28%. As for planned measures in the corporate sector, the Socialists would retain the banking tax if elected and reduce it only if banks reinvest the money they gain from loans granted to companies.
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