Opposition mayors control 48.5% of local corporate tax revenue in Hungary

3.57 million (out of 5.8) Hungarians living in 10k+ towns now have a non-Fidesz mayor. And the amount of money these mayors dispose about is also interesting.


g7 calculation opposition cities

Local corporate tax revenue in the 48 opposition cities (LEFT bar) and Fidesz (plus independent) on the RIGHT Source and chart:

After the election a few  other interesting calculations have been made by G7, an economic portal. According to their calculation based on data drawn from the National Office of Statistics and local budget information, G7 calculated that opposition mayors will dispose over 48.5% of corporate income tax revenue in Hungary.

Local corporate taxes are an important source of revenue for towns and cities – mostly because everything else has been taken away from them. They are allowed to collect up to 2% of tax from corporations on their territory – giving 77% of their revenues. They have to beg to the government for every other resource, including permission to win EU tenders. (And that permission is contingent upon their election results.)

Naturally, the first thing everyone says when they hear it is that the government can push a piece of legislation through parliament overnight and take that all away. And that is true. After all, this is the country of laws without any parliamentary debate, a government without any control on its power, and a captured state that makes sure that no dissenter gets to eat. Not even what they catch themselves. Can Orbán allow his hungry loyalists to see that money goes to opposition entities? Entities that are simply called traitors and political non-entities in Fidesz parlance.

But also made an interesting calculation about the amount spent on public procurement contracts in the towns that went to the opposition but were under a Fidesz mayor during the last five years. According to this, Fidesz has lost control over 1.3 billion euros’ worth of public procurement. That is money their loyalists don’t (automatically) get now, money that may go to opposition elements. That is huge, considering that those who don’t align, must not eat. But worry not, this, too, can be taken away easily.

That is why Budapest and a few other Eastern European capital cities are exploring the possibility to go around their governments in their effort to attract EU-funds. It is a very 21st century idea, considering that the new divide appears to be between cities and the countryside – not between nations and tribes.

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