An appropriate tax policy is a fundamental requirement for the functioning of any country. This is how the state generates the resources necessary for its operation, and although the government would like to manage as many resources as possible, it is equally important that citizens have money to spend or that the economy is strengthened through favorable tax policies. Everyone takes notice when tax policies change. Tax increases can fill budget gaps, but a similarly valuable resource, voter support, can be lost as a result of tax increases. Conversely, tax cuts before an election can win votes, but make it difficult for the government to manage its finances in the next cycle and force it to borrow. Although tax policy is vital for both governments and citizens, there is no perfect recipe; there are as many tax policies as there are countries, each responding with varying degrees of success to the delicate balance.
Perhaps we don't need to explain Hungary's tax system, as our readers are well aware of the Hungarian tax regime that has a profound impact on their lives, but we will describe it anyway: the Orbán government does not like to disappoint its voters and is notorious for handing out benefits. The cornerstone of its tax policy is the flat-rate personal income tax, from which new groups of voters are constantly being exempted before each parliamentary election. This is accompanied by the European Union's highest value-added tax, which, together with foreign loans, helps to fill the state coffers through inflation. The government's position is well known, but it is worth discussing voters' views on taxation. Although the word "socialist" is almost taboo in public discourse, Hungarians' policy views often reflect left-wing values. Tax policy is a key issue in the 2026 election, with the Orbán government promising further concessions and handouts, while Péter Magyar would reduce personal income tax to 9 percent and tax the rich. In its latest survey, Republikon asked respondents about multi-rate income tax and the taxation of large fortunes.
The whole research can be read here.
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