Bled local governments: we already know what the Hungarians would give up

The government has been stabbing local governments since the outbreak of the coronavirus epidemic and depriving them of resources, citing “burden sharing.” It started with the car tax and then made it free in the spring and now. Next year, local governments will not be able to increase local taxes and will have to keep profits, and the big increase is the most important revenue, the partial deduction from business tax.

The rule of thumb is that the local business tax rate is 1 percent, even if the tax rate stated in the municipal ordinance is higher. Micro, small and medium-sized enterprises, whose net sales or total balance sheet do not exceed HUF 4 billion, pay only half of this amount.

The government did not leave it to chance, as it ruled that in settlements with fewer than 25,000 inhabitants the amount lost would be compensated and in larger cities an individual decision would be made. The latter include the municipalities and districts that elected an opposition mayor and / or a representative body last year.

Due to the recalls, many mayors have already sounded the alarm and raised the possibility of some services being closed. Several cities have turned off decorative lighting Wednesday night to protest bleeding, which is obviously an essential public service, but anticipate that things that may already affect people’s quality of life may have to be abandoned later.

On behalf of our Pulse Research magazine, we conducted representative research, asking people what they would give up, what municipalities could save on. Respondents were able to check multiple options.

The majority, 63 percent of those surveyed, said savings should be made to support civilians, churches and the arts. More than a quarter of the population said aid should be stopped, or at least saved.

However, there are also those who would “face” the conflict: 16 percent of people would save on garbage collection and cleaning, for example. In the summer, an unbearable stench would spread in the larger cities for a short time. Thirteen percent of people would save on home help, which would hurt retirees painfully.

Unsurprisingly, only 8 percent of those surveyed would save in daycare and kindergarten, and only 6 percent in specialized clinics.

Budapest would put on the gloves

Among the population of the capital, only 52 percent would save on culture, churches and civilians, and 19 percent would agree to cover the streets with their eyes. Interestingly, 10 percent of Budapest residents also commit to jeopardizing the operation of specialized clinics if this is necessary for the survival of the local government.

In municipalities, this rate is 3 percent, which is achievable, since in many places it is the only option for someone to access health care.

There is no serious dividing line between graduates and those with lower levels of education in this area. Although elementary school graduates and high school graduates seem to attach less importance to the arts or the civil sphere, this is by far the most popular “saving idea” among graduates.

At the same time, the age breakdown yielded interesting results. For example, those over 60 would save more in specialized clinics than the younger ones, although medical care is more important to them. Thirteen percent of them would slash daycare and kindergarten budgets, and 25 (!) Percent wouldn’t mind stinking eyes on the streets either.

The difference between women and men is most evident in the fact that the latter would withdraw aid at a higher rate and reduce support for churches, civilians and the arts.

In early December, the IDEA Institute asked people for their input on the corporate tax collection and bleeding from local governments. The poll found that not even a quarter of Fidesz voters agree with the measures, although it is rare that the field does not hold together behind the party.