1987. Különkiadvány, 1987.10.01 / HU_BFL_XIV_47_2

The first and foremost condition fór tbe taz system's acceptability is openness of its drafting.- It is intolerable tbat even tbe bodies (tbe Hungárián Academy of Sciences, SZOT, etc.) vhich tbe leadership customarily consulte on mattéra of aucb importance—bút vitbout any obligation on tbe leadership'a part to heed the advice—have been able to learn of the government's intentions only on a far more limited acale tban usual, and under a pledge of strictest aecrecy. Tbe alternative concepts ebould be made public, and the press should provide eztensive coverage of the bili*a debate.- Let tbe National Assembly set up a committee of ezperts to monitor tbe név taz system's economic and social impact, and to continually submit proposals fór tbe system's necessary corrections. Tbe committee's sessions should be open to the public, and the committee's chairman should present bis report to the full National Assembly.- The taz reform Í6 acceptable only in a package vith a reform of the system of political institutions and a comprebensive economic reform. Eigbts before taxesl

In conjunction vitb tbe név taz sy6tem itself, our proposals are as follovs:- Personal income taz cannot disregard the number of dependents; and it must nőt penalize tbe families vhere the mother devotes herself to raising the children, vhile the father compensates fór the los6 of her income by doing eztra vork. What ve need is indeed family income taz, rather tban personal income taz. Only this vould protect proliiic families, and tbe eztended families that are helping to support alsó tbe grandparents. Tazing tbe earner is socially unfair, inhumane, and antinational.- It is common knovledge that acces to housing places a disproportionately heavy burden on tbe family. It is varranted, both economically and socially, that tbe government accept tbe ezperts' proposal and recognize the creation of a home as a substantial taz-reducing factor.- Value-added taz must spare the lov-income groups. According to the plan6 tbat have been made public, tbere vili be no VAT on staple foods. Bút tbere must be mucb finer differentiation than tbat. Detergents and kitchen cabinets cannot be tazed at tbe same rate as leather sofas and armchairs or diamond earrings. At least four different taz rates ougbt to be introduced, to distinguisb essential goods, consumer goods, quality goods, and luzurie6.- Interests and dividends are tazed everyvhere in the vorld. It vould be intolerable to exempt bank accounts and securities from personal income taz. The interest rates, of course, vili have to be sufficient to yield a return on tbe investment, even vitb allovances fór inflation and tazes.- It is customary to taz on the basis of estimates the incomes tbat in themselves are nőt illegal, bút fór vhich there are no vritten records (tips, gratuities, and payments in cash fór vork performed). This is hov it should be in the Hungárián taz system as véli. After all, the proportion of

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