- 23 Jun 2020 8:34 AM
In a comment on regional purchasing power parity data, Portfolio points out that the Hungarian tax system prioritizes families. Hungary’s leading independent online economic media outlet recalls that according to Eurostat’s recent dataset, despite the steep growth of wages in Hungary, Romania caught up with Hungary in terms of net wages as well as purchasing power.
These comparisons, however, calculate with individual wages, and do not factor in the impact of family tax benefits, Portfolio notes.
As a result of Hungarian family deductibles, average Hungarian households with at least 2 children have a 10 per cent higher disposable household income – nearly as much as Slovenian households.
In the case of families with parents earning less than the average wage, the gap is even bigger: Hungarian families may have 25 per cent more household income than their Romanian counterparts, Portfolio writes.
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