1987. Különkiadvány, 1987.10.01 / HU_BFL_XIV_47_2
■ucb incomee in Hungary is probably several tÍmeb higher tban vbat ia usual in tbe West. Tbe volume of unreported incomes can be reduced primarily by alloving deductions from the tax base fór a significant proportion of the expenditures tbat are aupported by voucbers.- In the same manner it vili be neceaaary to est imate the value of the perks that party cadres and government officials récéivé: tbe limousine fór personal use, tbe official residence, tbe presents from business organizations, the use of vacation homes and retreats, tbe free hunt ing, etc. Tbe taxable incomes of party cadres and government officials must include alsó aucb imputed income.- Tbere must be equal tax treatment of all incomes. Whether earned at a State enterprise or by a priváté entrepreneur, a forint remains a forint fór tax purposes. Different income brackets fór tbe self-employed than fór employees are unvarranted.- Taxpayers should be alloved to deduct from taxable income their contributions to velfare, cultural or scientific causes.- Finally, tax audits sbould be conducted nőt by the police, bút by civilian employees of the tax autborities. Tbe police should enter tbe investigations only vben there is reason to auspect tax fraud on a scale that constitutes a criminal offense. 4.6 Sources of Budgetary Revenue fór Social Welfare Policy Most of our proposals (vith tbe exception of our comment6 regarding the tax system) vili undoubtedly require an increase in expenditure. Tbe increase can be trimmed, of course, at tbe price of acceptable concessions. The question nevertheless arises: From vbere can revenue be raised fór this social velfare policy, more equitable than our present one? It should be noted first of all that somé of our proposals vili result in savings.- The State budget's burden vould be lighter if only elementary education and basic healtb care vere free; and if scbools and medical institutions vere establisbed a6 markét ventures.- Altbougb unemployment compensation and assistance fór retraining are név expenditures, ve start out from tbe fact that their combined amount vould be less tban tbe cost of maintaining tbe loss-making vorkplaces. Tbe drastic cuts in 8ubsidies fór industry vould more than offset these expenditures.- The cutbacks in the netvork of institutions caring fór children vho have been placed in the custody of tbe State, and tbe redundancy of a part of tbe public guardianship autbority staff, vould alsó result in somé savings.- Lovering the ceiling on pensions vould relieve the burden on tbe pension fund. f4 fi 4
