BALÁZS KRÉMER
Idiosync asies o ecen g owing inequali ies in
Hunga ian income dis ibu ioni
In oduc ion
Du ing pas yea s o inancial c ises and “g ea ecession” mos o he Eu opean
coun ies ha e expe ienced widening income inequali ies. These g owing dispa i ies
a e mul i ac o ial, no simply a ec ed by ea ned incomes in labo ma ke s, social
ans e s o iscal policies and e enue egimes, bu also by indi ec consequences o
ea lie unning indeb edness and amo izing loans.
This pape a emp s o ake in o accoun a ious ac o s o g owing income
inequali ies, and Hunga ian biases om in e na ional ends. As a conclusion, we will
a gue ha ela i ely high and apid g ow hs o Hunga ian inequali ies canno seen and
in e p e ed as an unlucky consequence o g ea ecession, a he as an ou come o
in ended poli ics o uling go e nmen .
Income inequali y ends
Con empo a y social discou se has pu he subjec o inequali y in o new insigh s.
Social inequali y is no simply iden ical issue wi h he humani a ian ouble o po e y,
any mo e; i is a he an o e all ac o o social and economic de elopmen .
Wilkinson and Picke (2009) p o ided e idences ha la ge inequali y no only leads
ha dships o bo om s a a o socie ies, bu also, o e all social and well-being
indica o s a e wo se in less equal socie ies, han in mo e unequal ones. K ugman
(2012), S igli z (2012) and Pike y (2014) con on ed wi h adi ional app oaches
supposing ha mo e unequal dis ibu ion o income and weal h would c ea e mo e
sa ings, mo e in es men s, mo e job-c ea ion, and inally as e economic g ow h –
and egali a ian iscal in e en ion and edis ibu ion by hei na u e slows down
heal hy ma ke s and economic de elopmen s. The a e -c ises “new economics”
discuss social inequali ies as damaging ac o o ma ke demands, he “secu i y” o
ma ke mechanisms, c ea es concen a ion o powe ha des oys such ounda ions o
ma ke s and capi alism, like ee compe i ion and en e ing new ac o s in o ma ke s.
In he below pape we do no wan o con ibu e in o ha high-li ed deba es on he
ele ance o inequali ies in economics and poli ical economy – we simply accep ha
social inequali y seems o be mo e impo an and mo e gene al ques ion han i used
o be, and I shall y o p esen Hunga ian indings on inequali y in ha wide con ex
– wha e e i means “wide ”.
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 119
Hunga ian public opinion and policy na a i es look back pas decades, as a pe iod o
pe manen g ow hs o inequali ies, mo e o less as “na u al consequence” o capi alis
ansi ion. The inequali ies exp essed by di e ences o nominal incomes (no
co ec ed by in la ion) illus a e and “con i m” ha pe cep ion.ii
Figu e 1.: Nominal income g owh s o bo om and op decile and a e age
income (HUF)
Sou ce: Social Resea ch Ins i u e (TÁRKI): Household Moni o Repo , 2012
Howe e he abo e g aph seems o p o e he popula na a i es, i shows also ha
inequali ies s a ed o g ow no a e he ansi ion, bu a he du ing he la e
communism (ac ually om he la e ‘70s). Meanwhile, he cu es le us suspicious
whe he he inequali y has been pe manen ly g owing. In ac , no, he ela i e a ios
show wa y, and no pe manen ly widening cu es.
120 METSZETEK Vol.3. (2014) No.4
Figu e 2.: Rela i e income o bo om and op decile as a io o a e age income
Sou ce: SRI (TÁRKI) op. ci .
Syn he ic inequali y indica o s con i m he wa y cha ac e o inequali y changes. I we
would o a oid he measu emen unce ain ies and una oidable mis akes o income
igu es in bo om and op deciles, and we use he lowe b eaking poin o op and
highe b eaking poin o bo om deciles (P90/P10), we gain he below g aph om
Tá ki 2012 da a.
Figu e 3.
Sou ce: SRI (TÁRKI) Moni o , 2012
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 121
O applying Gini-coe icien s ha e e o o e all dis ibu ion (and no only o he
bo om and op en h):
Figu e 4.
Sou ce: SRI (TÁRKI) Moni o , 2012
Gi ing b ie his o ical and desc ip i e explana ion o he inequali y wa es illus a ed
abo e, we may di e en ia e ou di e en ime-in e als. The i s pe iod is he
ansi ional c isis ha s a ed du ing la e communism and ended a he beginning o
2000s. Inequali ies we e g owing pa ly by impo e ishmen and mass unemploymen ,
since 1,5 million jobs o o me socialis economy disappea ed by he collapse o
Eas e n bloc, by es uc u ing and p i a izing o me s a e-owned indus ial and
ag icul u al i ms, as a consequence o pos -indus ial ansi ion, and as con on ing o
low compe i i eness accessing o open, globalized economic wo ld. Applying Ma xis
language, same pe iod was he e a o “o iginal accumula ion o capi al”, he bi h o
new Hunga ian bou geoisie ha aised inequali ies on he iche side, as well.
The second pe iod s a ed in 2002, when socialis -libe al coali ion won he elec ion
and socialis P ime Minis e opened a “new cou se” o so called “wel a e ansi ion”
(indica ing ha a e he democ a ic and capi alis ma ke - ansi ion he e came he
ime o ansi ion o wel a e owa d a mo e gene ous one gi ing mo e o he people).
Tha policy supposed a booming GDP g ow hs igh a e he accession o EU – ha
was an un ealis ic hope. Expanding wel a e expendi u es could be inanced om
dep hs and de ici s – ha pa ly educed social inequali ies, bu also b ough o
d ama ic sho ages he s a e budge s.
122 METSZETEK Vol.3. (2014) No.4
The hi d pe iod was e y sho . F om 2008 he socialis go e nmen almos “ga e
up” he poli ical compe i ion o he 2010 elec ion, and hei only objec i e emained a
p ope c ises-managemen ying o a oid a inal collapse o economy. Looking back
o ha pe iod, i was a p ope ly success ul ea men o c ises in economic and social
sense, as well: hey managed he s a e budge and did no cause as much social pains
and ha dships, as i had been p edic ed be o e. The social inequali ies we e g owing –
on a modes ange. On he o he hand, while go e nmen indeed a oided a majo
imbalance occu ing, bu he de ici was s ill well abo e he Maas ich-le el and le
he EU wi h no o he choice bu o con inue he EDP agains Hunga y; also, he
ela i e balance was inanced by inc easing go e nmen dep , om o eign (mainly
IMF) dep s.
F om 2010 he new igh -wing (FIDESZ) go e nmen s a ed a new e a widely
c i icized by hei au oc a ic use o poli ical powe , cu ing back he ules o law and
“uno hodox” economic and iscal policies. F om ha ime he scisso s o inequali ies
pe manen ly opened – ha we will analyze in de ail.
Following e alua ion o Tá ki Household Moni o epo o 2012 we may summa ize
he o e all pas decades’ ends o inequali ies as ollows:
Table 1.
Ra io o income s a a wi hin he popula ion (%):
1992
2000
2012
Rich (mo e han double o median income)
7
9
8
Uppe -middle s a a (120-200% o median)
25
25
27
Middle s a a (80-120% o median)
42
34
30
Lowe -middle s a a (50-80% o median)
20
23
21
Poo (less han he hal o median)
6
9
14
To al
100
100
100
Sou ce: SRI (TÁRKI) Moni o , 2012
We may obse e wo majo shi s, namely he in ensi e g ow hs o he poo , and he
ema kable loss o he middle. Bo h shi s a e unusual om he iewpoin o “middle-
classism” ha p og ess is ypical in de eloped coun ies. (E en i he ecession b oke
ha “middle-classis ” endency in many coun ies and middle classes we e na owed
du ing hose ha d imes. The Hunga ian special y is he wen y yea s con inui y in
sh inking middle s a a.)
Concen a ing on o pas yea s and ongoing de elopmen s he end has become
c aggy and de ini e: inequali y has been s ongly g own. (Tá ki, Household Moni o ,
2012)

Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 123
Table 2.
2009
2012
Gini
27,2
29,3
P90/P10
3,53
3,87
P90/P50
1,81
1,84
P10/P50
0,51
0,46
Sou ce: SRI (TÁRKI) Moni o , 2012
Thus, he p o ile o income s uc u e behind he o e all g owing inequali y is e y
special.
Figu e 5.: A e age o al income o households in Eu os, calcula ed in PPP
basis
Sou ce: Eu os a , SILC, 2013
One special cha ac e is he alling income o he poo : s epping back o he i s
g aph (Figu e 1), i is unique since con adic s o basic p inciple o jus ice by John
Rawls ha he nominal income o he poo has allen in pas yea s.
124 METSZETEK Vol.3. (2014) No.4
Despi e o alling income o he poo he eal b eaking poin is no a he lowe
income segmen s, i is a he a he op. In a pe iod when he a e age income
inc eased, he income dis ibu ion has shi ed oughly in a simple manne : he loss o
he lowe deciles became a gain o he iches .
Figu e 6.: Real income change calcula ed on HUF basis 2009-2013
Sou ce: Eu os a SILC 2014
Compa ed o abo e wo g aphs i shows ha only he op deciles ealized a e age
income g ow hs o he whole socie y; and, he gains on he op is much highe han
he loss on he emedy o popula ion.
Looking a pu e dis ibu ional e ec s du ing pas yea s we may obse e ha 9.-10.
deciles ha e gained a g owing p opo ion om o al incomes, while 1.-8. deciles los
om o al incomes.
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 125
Figu e 7.: Changes in% as gained o los sha es o deciles om o al income
(2009 o2013)
Sou ce: Eu os a SILC 2014.
As we said ea lie , he poo es a e su e ed by bigges loss o income, bu also he
lowe h ee qua e has expe ienced de ini e income declines.
Sea ching causes why households ha e less money hey had had be o e, we should
d aw he a en ions on o ollowing ac o s.
Fi s , he go e nmen cu down he le els o wel a e bene i s, also he du a ion o
unemploymen insu ance o 3 mon hs and es ic ed eligibili ies o disabili y pensions
and bene i s ha educed he income o poo es , social ans e ecipien s.
Second, while employmen a es emained, o sligh ly inc eased caused by he
ex ension public wo k p og ams (employing people in e y poo condi ions o e y
low wages) and he apidly g owing emig a ion and o eign job-placemen s – hese
employmen -g owing endencies did no compensa e he loss o “s anda d-
employmen ” in public p i a e sec o , and he ela i e highe wages ea ned in business
en e p ises and open job-ma ke s.
126 METSZETEK Vol.3. (2014) No.4
Figu e 8.: Changes in open job ma ke employmen compa ed o 2008 3 d
qua e
Sou ce: Hunga ian Na ional Bank, Repo on Employmen , 2012
Thi d, he FIDESZ go e nmen in oduced and implemen ed la a e ax (and o he
iscal policies, analyzed la e in ha pape ) educed undamen ally he e enues paid
by he ich, and a he same ime, abolishing ax deduc ions o low wages ha pu
hea ie ax bu den on o he poo e and middle s a a ha educed he ne income in
hese segmen s.
“Almos incomes” – impac s o consume c edi s o household incomes
Inequali y li e a u e p obably unde es ima es he impac s o dep hs and c edi s on o
social income s uc u e. Analyzes o en cha ac e ize ongoing ecession as “c edi -
c ises”, o , a leas as oo ed in c edi c ises, bu analyzes ocus on o ansi ion o
poli ical-economic sys ems and iscal implica ions, and less o social consequences.
-
100
-
80
-
60
-
40
-
20
0
20
40
-
100
-
80
-
60
-
40
-
20
0
20
40
2005
2006
2007
2008
2009
2010
2011
2012
i ms employing
less han
10 pe sons
i ms employing
mo e han
10 pe sons
Changes in open job-ma ke employmen compa ed o
2008 3 d qua e
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 133
Figu e 15.: Change o e ail a ic and esiden ial consump ion by qua e
yea s, in %
Sou ce: HNB epo on GDP ends, 2012
Losses exp essed in kind make us suspec ha ends “in kind well being” o people
migh be e en wo se han sh inking amoun s o incomes.
As an indica o o in-kind well being we may p o i om EU dep i a ion da a,
showing he a io o popula ion missing, being dep i ed om goods and se ices a e
seen as s anda d and no mal needed p e equisi es o li e. Eu os a de ines ac o s o
indica o s, as ollows:i
“Based on he limi ed in o ma ion a ailable om he EU S a is ics on Income and
Li ing Condi ions (EU-SILC) da a-se , he EU MD a e is cu en ly de ined as he
p opo ion o people li ing in households who canno a o d a leas 3 o he
ollowing 9 i ems:
• coping wi h unexpec ed expenses;
• one week annual holiday away om home;
• a oiding a ea s (in mo gage o en , u ili y bills o hi e pu chase ins almen s);
• a meal wi h mea , chicken, ish o ege a ian equi alen e e y second day; keeping
he home adequa ely wa m;
• a washing machine;
• a colou TV;
• a elephone;

134 METSZETEK Vol.3. (2014) No.4
• a pe sonal ca .”
Simila ly, Eu os a de ines as “se e ely dep i ed” households hose who canno a o d
4, o mo e i ems o abo e lis . The Hunga ian igu es on a io o se e ely dep i ed
popula ion show wo se si ua ion, han in he “old” membe s a es; bu he dynamics
o declining li ing condi ion is much as e wo sening da a compa ed o bo h, “old”
and “new” membe s a es.
Figu e 16.: Ra io o se e ely dep i ed (4+ dep i a ion ac o s) popula ion
Sou ce: Eu os a SILC 2014
Meanwhile, no only he a io o se e ely dep i ed household had g own, bu also he
“deepness” o dep i a ion had wo sened a he same ime in Hunga y.
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 135
Figu e 17.: ,,Deepness” o dep i a ion – Eu os a , 2013 (a e age numbe o
dep i a ion ac o s)
Sou ce: Eu os a SILC, 2013, Hunga ian da a
Dep i a ion is no iden ical wi h po e y wi h ega d o he ac ha no only he poo
miss basic p e equisi es o “no mal li e”. O cou se, poo people and amilies a e
su e ed mo e o en om sho ages in e e yday li e, bu o he s a a miss also ce ain
goods and se ices ega ded as s anda d and no mal elemen s o consump ion. Also i
is ue, ha dynamics o dep i a ion indica o s show mo e apid decline in case o
lowe income-g oups, bu a io o dep i ed households has g own in e e y income
le el.
136 METSZETEK Vol.3. (2014) No.4
Figu e 18.: Ra io o se e ely (4+) dep i ed wi hin in come quin iles, Hunga y
Sou ce: Eu os a , SILC, 2013
I we wan o illus a e declining li ing s anda ds by less sophis ica ed igu es han
dep i a ion and se e e dep i a ion index, we should ake a look on o da a p o ided by
Gallup G oup in collabo a ion wi h OECD on how people a e us a ed o no o
be able eeding p ope ly hei amily.
As explana ion o below cha s we mus d aw he a en ion on o he subjec i e na u e
o da a: da a do no show he p opo ion o popula ion expe iencing o li ing
pe manen ly in hunge , da a shows he a io o hose epo ing ha dships o a o d
app op ia e ood. Many and o en c i icize subjec i e well-being da a as showing
unce ain eali ies beyond subjec i e pe cep ions, bu longi udinal da a p e en his
u bulence, since basics o pe cep ion on wha is p ope and wha is no – do no
change o e nigh . Following ha conce n, inc easing a io o hose who a e unable o
a o d app op ia e meals – is a clea and alid indica o o declining li ing s anda ds.
Also we should add ha de eloped coun ies ega d nu i ion as e iden ially ul illed
need wi hin hei popula ion, inadequa e nu i ion is basically a ouble in he
de eloping wo ld. Da a con on as wi h said eali y: a la ge, and apidly g owing s a a
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 137
o people su e ed by being incapable o insu ing app op ia e ood, wi h special
ega ds o kids.
Figu e 19.: Top 9 OECD coun ies wi h highes incidence o amilies
s uggling o a o d oods 2013
Sou ce: Gallup epo in co-ope a ion wi h OECD (2014)
In in e na ional compa ison we may obse e ha he as es and deepes decline o
adequa ely eed amilies and child en can be obse ed – in Hunga y.
Figu e 20.: Families wi h child en epo ing di icul ies a o ding oods, in
OECD coun ies wi h la ges inc ease be ween 2007-2013
Sou ce: Gallup epo in co-ope a ion wi h OECD (2014)
138 METSZETEK Vol.3. (2014) No.4
Applying in-kind measu es o indica ing ends o li ing s anda ds, we may e alua e a
wo se decline in Hunga y, han in mone a is indica o s. By o he wo ds, he
“exchange a e om money o p oduc s and se ices” o sh inking income o
Hunga ians has been also de alua ed du ing pas yea s.
Changing cha ac e o e enue and ax policies would ound casual explana ions o
abo e obse a ions. The la - a e income ax- e o m (by abolishing ea lie ax-
deduc ions and ising e enues on low, and educing bu dens on high wages)
dec eased he o e all di ec bu dens on wages and pe sonal incomes, and a ious
consump ion- ela ed axes (e.g. li ing VAT o 27%) compensa ed sho ages o s a e
budge . This means also o pay highe axes in g oss p ices and less ne coun e - alue
o pu chased goods. Less income o lowe 80% o popula ion, makes pay e en less in
e ms o consump ion and li ing s anda ds.
Household sa ings and in es men s – he los secu i y
Sa ings and in es men s a e no so exci ing issues o sociologis s dealing wi h social
inequali y. I is a he a classical opic o economis s analyzing sa ings – wi h special
ega ds o sa ings o households – as esou ce o in es men s, basically o company
in es men s. Mone a is and banking se ices a e in e es ing issues as echnical ones:
how e icien ly hey may implemen ha ade o , how e icien ly hey channel
p i a e-indi idual sa ings o job-c ea ing and de elopmen -gea ing in es men s. Fo
us household sa ings ha e di e en , p obably less sophis ica ed meanings. Roughly, i
someone owns any o ms o sa ings o in es men s, he/she keeps in s o e some
ese e ha may se e su i al in ha d imes; ha migh se e as s a up capi al, i
some hing mus be changed, some hing new mus s a . In con as , ha ing no ese e
means ha ing no choice, no change and no powe o change – show mus go on, how
i goes.
Below igu es will illus a e how Hunga ians los hei p e ious sa ings ha e e used
o be smalle in in e na ional compa isons – bu o us ha means also a p ocess o
losing secu i y and eedom, as well.

Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 139
Figu e 21.: G oss household sa ing a es (as % o household incomes) 2003-
2012
Sou ce: Eu os a , 2013.
Gene ally speaking, he o e all alue o households’ inancial asse s had g own un il
2009, and a e 2010, hey ha e allen back o he le el o 2006.
Figu e 22.: Fiancial asse s o households, in USD, Hunga y
Sou ce: OECD S a is ics, 2013
140 METSZETEK Vol.3. (2014) No.4
Looking a he majo ac o s o asse s, in es men s and li e insu ance ese es
s agna ed wi h mino inc ease, loans allen as illus a ed abo e, and also pension und
equi ies allen d ama ically, since he go e nmen abolished p i a ely managed
manda o y unded pension schemes by con e ing equi ies o eligibili y in pay-as-you-
go pension sys em.
Figu e 23.: T ends o di e en inancials asse s in USD, Hunga y
Sou ce: OECD S a is ics, 2013
The o e all a io o households’ in es men s is almos he hal o same a io in Eu o
e a, and he end o changes is sligh ly posi i e in ime, despi e o he c ises.
As we men ioned ea lie , go e nmen p og ams like “exchange a e embankmen ”
and, “subsidized paymen o ull” gene a ed ade-o s be ween sa ings-in es men s
and loans, bu abo e u bulences caused by go e nmen egula ions he ends o
declines a e explici .
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 141
Figu e 24.: Sa ing and in es men s a es o households, Hunga y
Sou ce: Eu os a , 2013
O e all a es do no in o m on alloca ion and dis ibu ion o sh inking household
sa ings and in es men s. The only accessible help o know mo e on ha is he ela i e
small-simple, bu ep esen a i e su ey made un by G k L d. By ou assump ion G k
da a canno seen as punc ual, pa ly because 40% o su ey-in e iewed pe sons did
no answe a all abou hei sa ings, pa ly because sel - epo ed da a on weal h a e
e en mo e unce ain han income da a. Meanwhile, cleaned da a (wi hou non-answe s
and la e no sa ings) seem o be accu a e in a sense ha hey co ela e s ongly wi h
da a om ex e nal sou ces on same opic.
The loss o sa ings oo ed basically in loss o sa e s. Since less people ha e sa ings,
pa allel ewe people conside making pay o main ain hei clien - ela ion wi h banks.
Ra io o sa e s and bank-clien s we e all he ime smalle han in e na ional s anda ds,
bo h a io allen du ing he c isis e en deepe om ha ela i e low baseline, as well. i
142 METSZETEK Vol.3. (2014) No.4
Figu e 25. Ra io o hose owning sa ings and being bank clien s wi hin 16-64
popula ion
0
5
10
15
20
25
30
35
2008
2009
2010
2011
2012
2013
Owns sa ings
Bank clien s
Sou ce: G k L d, 2013 ( a io o pe sons epo ed hey own sa ings among hose we e answe ed o
ele an ques ion o inqui y, in he ep esen a i e su ey o RBM esea ch p og am)
The loss o sa e s a e p opo ional in all o he coho s, meaning also ha olde
gene a ion’s eadiness and ad an age o sa e emained p opo ional in lowe le els,
oo. In absolu e e ms, his means also a weakening ma e ial secu i y o younge
gene a ions.
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 149
Figu e 32.: Social spending inc eased leas in coun ies mos a ec ed by he
c isis (pe cen age changes in eal public social spending and eal GDP,
2007/08 o 2012/13)
No e: Es ima es o 2007-08 and 2012-13 a e a e aged o e wo-yea pe iods o allow o he di e en
yea s in which he c isis began ac oss coun ies and o limi he e ec o yea -on-yea luc ua ions.
Sou ce: OECD (2013), OECD Social Expendi u e Da abase (SOCX), p elimina y da a
(www.oecd.o g/social/expendi u e.h m).

150 METSZETEK Vol.3. (2014) No.4
Rega dless G eece (expe iencing an ex eme GDP loss), Hunga y is he only
excep ion by no inc easing (de ini ely educing) social expendi u es du ing he c ises.
Tha canno be explained by ex a high a io o wel a e expendi u es (Hunga ian a io
o GDP is on he middle ank in EU), and also he a io o ecession does no explain,
why he Hunga ian go e nmen did no wan o ease he ha dships o lowe s a a by
s eng hening wel a e schemes, and why we can obse e a solidly sh inking social
expendi u es. In ac , go e nmen cu back he amoun o social bene i s by mo e
han 25%, sho ened he du a ion o unemploymen insu ance o 3 mon hs ( om 9
mon hs), cu back d ama ically disabili y pensions and bene i s – ha esul ed a
de ini e loss o income o wel a e ecipien s.
Meanwhile, i we alk how go e nmen made ac i ely social inequali ies g ow, he
majo impac is no how he poo became poo e , bu a he how go e nmen
bene i ed he ich o be iche .
In 2013 S a e Audi O ice published a epo (Tó h G. Cs. – Vi o ácz, P. 2013) on
i s’ websi e, analyzing he impac s o iscal p og ams implemen ed by he go e nmen
om 2010 o 2013, applying mic o-simula ion me hods on adminis a i e ( ax- epo s)
da a. By ha epo , he income axes paid by di e en income deciles we e as ollows:
Figu e 33.: A e age income ax paid by income deciles ( housands HUF),
Hunga y
Sou ce: Tó h G. Cs. – Vi o ácz P. op. ci . mic o-simula ions on SAO da a, 2013
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 151
The di e ence be ween axes paid in 2013 compa ed o 2010 (p esen ed in he abo e
cha ) shows ex eme gap be ween lowe 7 deciles o which ax bu dens we e g owing,
and he op 3 deciles, especially he op (10.) deciles, whe e axes we e educed o less
han hal .
Figu e 34.: Di e ence o a e age income ax paid by income deciles
( housands HUF), 2013-2010
Sou ce: Tó h G. Cs. – Vi o ácz P. op. ci . mic o-simula ions on SAO da a, 2013
Go e nmen he o ic a gued ax e o ms by p o-na alis objec i es gi ing incen i es
o be e -o , wo king “middle-class” ia amily- ela ed ax-deduc ion schemes –
eplacing and con e ing pa ly he uni e sal amily-allowance scheme. No e lec ing
o he policies and ealis ic p ojec ions how s a es may “buy” child en om middle
s a a by ax elie s (no e idence on ha would esul posi i e shi s in e ili y
a es…), da a show ha na alis impac is mino , almos symbolic, compa ed o
widened gaps be ween poo and ich.
152 METSZETEK Vol.3. (2014) No.4
Figu e 35.: Di e ence in income axes (HUF) paid in 2013 o 2010, by deciles
and di e en ypes o amilies
Sou ce: Tó h G. Cs. – Vi o ácz P. op. ci . mic o-simula ions on SAO da a, 2013
Summing up we conclude ha di e en sou ces, su ey and adminis a i e da a a e
con e ging and co ela e s ongly abou he p o ile o widening gaps in li ing
s anda ds, also we demons a ed he e y special na u e o Hunga ian gen e by
g owing inequali ies is, ha no he ma ke s, no he c ises – bu he go e nmen and
iscal policies aised inequali ies in income and ma e ial well-being.
Balázs K éme – Idiosyne asies o ecen g owing inequali ies in Hunga ian income dis ibu ion 153
Conclusion
Income dis ibu ions become globally mo e unequal in 2000s, especially du ing he
“g ea ecession” almos e e ywhe e on he Ea h. Social sciences, especially a ec ed
by Th. Picke y’s popula concep s exe ed in his book explain global ends o
opening income-scisso s by s ong concen a ion o weal h and capi al incomes o he
iches . In con as o global ends he g owing income-inequali ies in Hunga y
canno be explained by capi al-concen a ion, o , he impac s o economic c ises. As
we demons a ed abo e, g owing income-inequali ies, and o e all weakening ma e ial
insecu i y o Hunga ian popula ion can be seen a he as a consequence o
go e nmen iscal policies. I is unique – a leas in Eu ope – ha go e nmen
dec eased social expendi u es du ing he c ises, and e en mo e unique ha
bene icia ies o iscal e o ms a e exclusi ely he op income-s a a o socie y. While
mean income o o al popula ion inc eased – jus only he op decile ealized g owing
incomes, and he income posi ion o he “ es ”, he 1-8 income deciles los om hei
income posi ion, mainly as an e ec o go e nmen iscal, e enue and edis ibu i e
policies.
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