Tax evasion and tax changes in Hungary

Tax evasion reduces the efficiency of the economy as unequal opportunities of tax evasion leads to an inefficient distribution of resources. In Hungary, based on data for 2005–2006, tax evasion resulted in a transfer of 7.9 per cent of GDP from taxpayers to tax evaders. Following measures aimed to reduce tax evasion, this transfer was estimated to be 6.7 per cent of GDP in 2006 and 2007. Underlying reasons for tax evasion are the different burdens on labour and capital incomes. According to international experience, either the control of splitting labour and capital incomes or bringing their contribution burdens closer to one another can help in this situation. The effect of administrative measures is often temporary, because they do not improve tax-compliance attitude. A positive change in taxpayers’ attitude is an especially difficult task; one of its possible means can be a shift in the tax burden in favour of local taxes.taxation, tax evasion, hidden economy.

Structural challenges towards the euro: fiscal policy

Broad theoretical consensus and vast empirical evidence reinforce the view that prudent fiscal policy – also advocated by the fiscal institutions of the eurozone – can support the stable long term growth. After presenting some general principles of the optimal fiscal policy, the paper analyses the questions of fiscal convergence necessary for the successful eurozone entry and membership of Hungary. The paper calculates the consolidation necessary to reach the 2008 deficit target set by the Convergence Program. Taking into account of not only the level of the government debt but also the relatively progressed state of the interest rate convergence, the potential reduction attainable in the interest balance is moderate. The main result of the paper is that the necessary consolidation measures are required to reduce the primary balance by approximately 3 percent. In case of cutting public expenditure it would require approximately 4 percent reduction taking into account the revenue content of those expenditures. The structure of macroeconomic growth is not expected to facilitate fiscal consolidation – as wage and consumption growth, which have major influence on the development of relevant tax-bases, are expected to be moderate – and no improvements in the balance are expected as a result of the EU accession. International experience, especially fiscal consolidations of eurozone member states, however, show that structural – i.e. quality-improving and sustainable – measures and the reform of the institutional framework are essential determinants of successful consolidations. Temporary measures and deficit reductions by creative accounting do not foster macroeconomic stabilization and their eventual reversal is highly probable.Fiscal Consolidation, Optimal Debt Policy, Maastricht Criteria.

Nostalgic nationalism, welfare chauvinism, and migration anxieties in Central and Eastern Europe

This contribution examines, in the Central and Eastern European context, the interplay between ideals of national specificity, welfare chauvinist appeals, and emerging politics of migration, for the purpose of providing welfare provision to a narrowly defined ethnic group, as promoted by right-wing populist parties in the region. We suggest a comparative framework to account the various positions that such parties occupy in the mainstream political systems in Central and Eastern Europe. Our study deals with the case of a right-wing populist party becoming the main governing force, such as the Law and Justice Party (Prawo i Sprawiedliwość, PiS) in Poland; the case of a right-wing populist party as key opposition force, such as the Movement for a Better Hungary (Jobbik Magyarországért Mozgalom, Jobbik) in Hungary; and thirdly, the case of an unsuccessful right-wing populist party, such as the United Romania Party (Partidul România Unită, PRU). For our qualitative analysis we are drawing on the official discourses of these parties as articulated from 2015 onwards, since it marks the beginning of what has come to be referred to as the European refugee crisis. The aim of this chapter is to map out the various electoral strategies employed, with varying degrees of success, which juxtapose cultural protectionist appeals to welfare chauvinist proposals, and consequently shed light on the culture and welfare nexus in the Central and Eastern European context

Investigating the Links Between Cultural Values and Belief in Conspiracy Theories: the Key Roles of Collectivism and Masculinity

Research suggests that belief in conspiracy theories (CT) stems from basic psychological mechanisms and is linked to other belief systems (e.g., religious beliefs). While previous research has extensively examined individual and contextual variables associated with CT beliefs, it has not yet investigated the role of culture. In the current research, we tested, based on a situated cultural cognition perspective, the extent to which culture predicts CT beliefs. Using Hofstede's model of cultural values, three nation‐level analyses of data from 25, 19, and 18 countries using different measures of CT beliefs (Study 1, N = 5323; Study 2a, N = 12,255; Study 2b, N = 30,994) revealed positive associations between masculinity, collectivism, and CT beliefs. A cross‐sectional study among U.S. citizens (Study 3, N = 350), using individual‐level measures of Hofstede's values, replicated these findings. A meta‐analysis of correlations across studies corroborated the presence of positive links between CT beliefs, collectivism, r = .31, 95% CI = [.15; .47], and masculinity, r = .39, 95% CI = [.18; .59]. Our results suggest that in addition to individual differences and contextual variables, cultural factors also play an important role in shaping CT beliefs