A left-wing take on Hungarian-US tax treaty
July 13th, 2022A left-wing commentator believes that the US will do whatever it can to pressurize Hungary to approve the global minimum corporate tax. He believes that it’s introduction would benefit Hungary.
In Népszava, Miklós Bonta wonders if Hungary will back off and approve the global minimum tax proposed by Washington in order to save the Hungarian-US double tax treaty. The left-wing commentator recalls that the treaty has been in place since 1979 and will be terminated in 2024 unless the Hungarian government agrees to raise the corporate tax rate to 15 per cent (see BudaPost July 12). Bonta accuses the Hungarian government of following a ‘narrow minded strategy, exaggerating the national interest’. He takes it for granted that the US will use its power to force Hungary into submission. Bonta also suggests that higher corporate taxes would be beneficial for Hungary, as they would boost revenues.