The authors of the study analyse income redistribution in Hungary with a new tool: the taxation and support micro-simulation model. There are diverse factors acting in several directions embodied in the 2006 Hungarian tax and support system. Tax concessions make up a sizeable sum, but they fail to reach the truly needy, tending instead to benefit the middle-income strata. Welfare and family supports, on the other hand, go mainly to the poorest third of households and raise their disposable income to a great extent. The system shows high efficiency in reaching families with children and the import of the supports rises according to the number of children.
Financed by the National Centre for Research and Development under grant No. SP/I/1/77065/10 by the strategic scientific research and experimental development program:
SYNAT - “Interdisciplinary System for Interactive Scientific and Scientific-Technical Information”.