Hungarian Politics

[Martinus]

Not sure how widespread this is, but due to high taxes we have had these cafeteria bonuses employers can give out. Important to our present story are the meal vouchers. On a limited amount, they come with reduced taxes on them.

Personally, I find the whole concept an abomination - make due with tax levels which does not necessitate these stuff. But anyway.

The present government will, from this year, only give tax bonus on electronic "voucher" cards, not the paper-based ones which have been widespread. Nice? Not quite so, first of all because the main bonus comes from implementing a state-licensed voucher card. Plus, read on.

-There has been only one such card-based system in the country, used by OTP, the biggest Hungarian bank. It's owner is one of the closest allies of Orban, one of the two well-known "oligarch" backers of him (beside MOL, our oil company). So they gave a very nice jumpstart in this newly created market for the pals

-where else do their friends have significant business interest? Hungarian supermarket/shop chains. So, the state agency responsible for integrating applicant businesses into the card-system refuses to negotiate with foreign shop chains, and the small local business can only get the green light for it if they join through a Hungarian chain's infrastructure, ie. succumbing to it.

I think this is pretty normal, no?

Benefits given to employees are income like anything else, especially when given in a cash form (or cash equivalent, like "gift cards" and the like). Why should they be taxed differently?

The tax authorities here go even further - there is a new line of case law which for example tries to make stuff like parties for employees a taxable income, but hopefully this will be crushed in courts.

[Tamas]

Because the entire reason to give it is the tax break. We are talking about foodstamps FFS.

I don't like them as I said, the taxes should be on a bearable level and there would be no need for these.

[Sheilbh]

I dealt with this a lot in my old job.  It's not common everywhere but lots of countries have something like it.  It's company benefits-in-kind.  Employers liked them because they were cheaper than wages and tax free.  It's like a really shit company car.

[Syt]

Yes, in Austria you can give meal vouchers up to 4.40€/day tax free. Also, 1/6 of the annual income can be paid as "special payments" at reduced tax rates (de facto 13th/14th salary, paid end of May and end of November).

[Admiral Yi]

First one looks like a Holy Grail interlude.

[Tamas]

the FIDESZ faction is having a congress closed off to the public. But some informations are allegedy leaked.

Including that Orban told the inner circle that the international attacks on him are part of an international conspiracy, reaching as far as the United States, and the CNN. 

Also allegedly, he urged a "hunt for moles", beause a few FIDESZ MPs voted "no" on the appointment of the head of the new authority over the judges in the country. She happened to be the wife of one of FIDESZ's most prominent members.

[Martinus]

Because the entire reason to give it is the tax break. We are talking about foodstamps FFS.

I don't like them as I said, the taxes should be on a bearable level and there would be no need for these.

I think you don't understand what a food stamp is.

I fail to see why a monetary benefit (i.e. remuneration) should be taxed differently than a non-monetary one. Both provide the employee with a taxable, financial gain.

[Tamas]

President of the Parlaiment, Laszlo Kover, 3rd official of the country, had an interview on Sunday.

He was always the most openly radical of the ancien regime within FIDESZ. His remark about opposition voters "could might as well go down the basement and hang themselves" was great munition for the opposition for a while.
But he is of the core of FIDESZ, childhood friend of Orban, so his voice supposedly carries weight.

He made three interesting points:

-Parlaiment should receive a separate guard force, independent of regular law enforcement. Because "the police, or the Republican Guard (don't be fooled by the name, it is a security team with a fancy title) cannot react fast enough if something happens in the parlaiment"

-There should be more severe punishments for MPs diverging from the house order

-the government's efficiency is highly hindered by the need to go through the Parlaimental voting process. "The factions should consider" switching to a system where the government has a much broader right to enact laws on it's own, with the Parlaiment approving these after they come into effect.

[Tamas]

This glorious stateman himself:

[Ed Anger]

-Parlaiment should receive a separate guard force, independent of regular law enforcement. Because "the police, or the Republican Guard (don't be fooled by the name, it is a security team with a fancy title) cannot react fast enough if something happens in the parlaiment"

The Capitol police nod sagely at such wisdom.

[Sheilbh]

Just saw this on the Guardian's Eurocrisis live blog:

12.09pm: The European Commission is withholding €495m of EU development funds from Hungary after the country failed to reduce its deficit.

These funds are means to support the EU's poorer regions. It is the first time the European Commission has proposed to suspend development funds from one of its members over an excessive deficit.

David Gow reports from Brussels:

The EC flexed its new fiscal surveillance muscles by threatening to suspend almost €0.5bn in structural aid to Hungary for persistently breaching budget deficit rules.

Olli Rehn, EU economic and monetary affairs commissioner, said: "Today's decision has to be regarded as a incentive to correct a deviation (from fiscal prudence) and not as a punishment."

He told reporters that Hungary had been in "excessive deficit" – breaching the 3% of GDP ceiling – since it joined the EU in 2004 despite repeated warnings to get its fiscal house in order.

Rehn was also dismissive of Budapest's argument that it brought its deficit below the 3% ceiling in 2011, arguing it was due to one-off factors.

Any Magyar rage yet Tamas?

[Tamas]

nothing yet, I wonder how this story will develop here, if at all.

[HVC]

nothing yet, I wonder how this story will develop here, if at all.

"Hungary doing so well that EU decides it doesn't need developement funds"

[Tamas]

 

[Martinus]

I wonder if you guys go the same deal from the EU that we did - i.e. that our social security/pension debt is not counted towards the deficit figures.