Why you pay so much tax

In this article, I want to talk about taxation and state involvement. On the one hand, the Hungarian man laments the need to pay a lot of taxes, and on the other hand expects the state to pay everything from the education of the child to retirement, from the maintenance of churches to the operation of the Opera House. Beyond that, of course, health and travel should also be free.

In Hungary, the role of state redistribution is unhealthy

In 2011, out of every 100 forints produced, the state took away 52 forints and decided who to give it to. The CSO data show that the neighboring countries take a much smaller share: Romania 32.5%, Slovakia 33.4%, Bulgaria 33.1%, Czech Republic 40.3%, Poland 38.5%. (Put simply, you have to pay that much less tax to everyone, that is, you take home so much more money.)

What is even more tragic is that about 60% of the total abstract is spent on welfare expenditure. This is where pensions are paid (23.4% of total government revenue was spent on this before last year, compared to 19.5% last year, which would be a welcome improvement if the amount were not only due to technical outsourcing, as the age limit (I stress, on paper only), goes to social and housing allowance of 20.9%, and “free” education goes to 10.8% , 10% for health, 5.9% for culture and environment.

Maintaining the state takes 19.1% and economic functions 13.1%

Due to the accumulated public debt so far (because “naturally” the state spends more than it collects each year), we also pay more than one billion for interest. Just to be aware of the magnitude of this is more than two thirds of the money that comes from personal income tax. That is, you are paying PIT almost solely to pay off interest on your debts so far. They do not repay the capital, they only pay the interest.

To make the problem a little more personal, do you know how much you are taxing on your earned income?

If you bring home a net $ 160,000, you actually received $ 320K from your employer. That is, half of your income goes to taxes and contributions that you and your employer jointly pay.

Unfortunately, your taxation here is far from over

With the rest of your money, you go shopping. After every thousand HUF spent, another 213 HUF goes to the state coffers due to VAT. (The VAT rate on basic foods is 18%, but hardly anything is included here, only the most basic dairy and cereal products are included. Therefore, they are not included in the excise duty on alcohol and cigarettes.) Annual VAT revenue, which most people pay (as companies can usually reclaim it), two and a half trillion forints, almost double the total personal income tax.

In addition, you pay the telephone tax after you call, the part of the bank tax that the banks could pass on to you, and much more. When you go to refuel, remembering the $ 200 gasoline price, you should remember that there is an extra $ 913 billion of excise tax in the budget, most of it on fuel. Specifically, excise duty and VAT account for 54% of the price of petrol.

But we also pay $ 88 billion a year in taxes, and there are many types of tax that could be listed long.

We are not far from the truth if we say that out of every hundred forints you earn, the state takes away from you 65-69 for various reasons. In other words, you work for the state from January to early September, the income earned in the last four months of the year is yours only.

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