The stunner? The tax breaks and spending cuts were sponsored by Hungary’s SOCIALIST ruling government.
What’s more, Hungarian spending cuts that began in April have already caused the Hungarian national currency to rise in value against other currencies. Compare and contrast to the dropping value of the dollar since Obama’ stimulus.
BUDAPEST, June 29 (Reuters) - Hungary’s minority Socialist government passed a crucial test on Monday when parliament approved key 2010 tax changes to help the country recover from its worst recession in almost two decades.
The passing of the law averts the risk of early elections. Prime Minister Gordon Bajnai had said he would stay in his post as long as the Socialists and the Free Democrats support his program, which is also the backbone of Hungary’s financing deal with the International Monetary Fund (IMF).
The tax law, which will cut personal income taxes and social contributions paid by employers to the government, was passed with 211 votes and 152 votes against, with backing from the Socialists’ former coalition allies, the Free Democrats.
Bajnai’s government, which took office in April, has cut spending and kept the budget deficit in check. This has helped the forint to firm from all-time lows hit versus the euro in March, and helped rebuild some investor trust in Hungary.