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Aron Kiss
Magyar Nemzeti Bank (Central Bank of Hungary)
Vol. 2 No. 2 (2013), Articles, pages 100-118
Submitted: Sep 24, 2018 Published: Dec 30, 2013
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The paper applies recent developments in the theory of optimal income taxation to the Hungarian personal income tax system. The main conclusion is that the optimal top marginal tax rate in Hungary is likely to be higher, perhaps substantially, than the actual rate. It is discussed how this result depends on the parameters describing labor-supply behavior, the income distribution, and the redistributive preferences of society.


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