Unmasked: Peter Magyar’s Denial Falls Flat as Tisza Party Circles Push Tax Hikes

While the Tisza Party's leader talks about easing burdens, both a leaked internal document and the experts around the party are pushing for tax hikes, making the promises of tax cuts completely untrustworthy. Using written materials, video recordings, and public statements from recent months, Magyar Nemzet shows point by point that practically everyone around the Tisza Party believes Hungary’s personal income tax is too low or at least that the tax reliefs are excessive. This leads to one conclusion: if the Tisza Party comes to power, it will pursue an austerity policy. This conclusion is not contradicted by the tax cut pledge Peter Magyar came up with several days after their tax increase plan was made public, nor by the fact that he is threatening the journalists who report the facts with prison.

Tisza Party chief Peter Magyar (Photo: Balazs Hatlaczki)

After it was exposed that the Tisza Party is preparing a brutal tax increase, Peter Magyar began firefighting, trying to calm the nationwide scandal by claiming the opposite. However, he stumbled right at the starting block: the so-called "real" taxation plan he posted as a denial is totally discredited by the publicly expressed views of experts, advisers, and prominent figures of the party. Those views are about serious tax hikes.

Peter Magyar and Zoltan Tarr, Tisza Party's president and vice-president (Photo: MTI)

1 The leaked internal document

First, we must recall the contents of the internal material obtained and presented by Index. According to this, the Tisza Party may be preparing to introduce a three-tier progressive income tax. Based on the written memo of the party’s economic cabinet, only a very narrow group would remain at the current tax level, and even the average salary would fall into the 22 percent bracket, and above 1.25 million forints a 33 percent bracket would kick in.

Now let’s look at those statements which – contrary to Peter Magyar’s new promises – make it clear that the Tisza Party is preparing for a serious tax increase.

2 Aron Dalnoki, the economic coordinator

Here is Aron Dalnoki, who coordinates the economic working group that authored the document advocating a PIT hike. The Tisza Party’s economic expert did not deny the party's tax-hike plans to our newspaper, and at one of Tisza’s earlier forums he explained his stance in a completely obvious way. In Etyek – where he participated alongside Zoltan Tarr, Tisza Party’s vice-president – he asked the audience to vote on who wanted a flat tax system and who wanted a multi-tiered one. Dalnoki raised his hand for the multi-tiered system, and with satisfaction – and Tarr with a smirk – acknowledged that 80–90 percent of the audience did the same.

3 Zoltan Tarr, vice-president

At the same forum in Etyek, Zoltan Tarr, in the context of tax hikes, essentially said that they can lie about everything until the election. He put it literally like this: "This is a question that needs to be discussed, but right now it cannot be discussed. Here among ourselves of course it can, and later, when it comes out, I will be the one explaining, but that will be pointless. […] And there are countless things we cannot talk about. That is why we say, very firmly, that there are many things that can and should be done. Elections must be won, and after that anything is possible."

4 Maria Zita Petschnig, program writer and Tisza speaker

Experts working around the Tisza Party are also alluding to serious austerity. One such is economist Maria Zita Petschnig, who admits that the Penzugykutato Zrt, the institute where she happens to works, wrote an economic program for the Tisza Party. She is a regular speaker at Tisza events and not incidentally the wife of politcal analyst Laszlo Keri, who has practically become a propagandist for Peter Magyar and his party.

Petschnig has repeatedly criticized Hungary's flat tax, calling its introduction a mistake. At one Tisza event this March, she spoke ironically about mothers' PIT exemption, and more generally criticized the measure of granting tax exemptions. "Why should someone over fifty be given this? Because surely they are no longer able to improve the demographic situation,” Petschnig said mockingly.

Equally telling was another of her remarks this spring. She said that Peter Magyar and his team could only reduce VAT if they raised other taxes. "It won’t be easy for Peter, because right now it’s easy to make promises about a VAT cut […]. But anyone who talks about a VAT cut must also talk about a tax increase," Petschnig stated – naturally at her husband Laszlo Keri’s side (from 2:54:35 in the video).

5 Tamas Katona, who also took part in drafting a program

Tamas Katona, who also worked with the Penzugykutato Zrt on a program intended for a new government, believes that Hungary’s personal income tax is too low, driven down in what he called a “perverse way.” The mathematician, who earlier served as a state secretary under ex-PM Ferenc Gyurcsany, also attacked the mothers' PIT exemption, calling the whole system unrealistic, unjust, and irrational. Regarding the proposal for a single-digit PIT, i.e. below ten percent, he said it was "fortunate" that it never materialized, because in his view it would have caused outright "catastrophe."

Katona is a member of the V21 group, which also supports the  Tisza Party. As early as last March, V21 lined up behind Peter Magyar and pledged their support, saying he embodies the hopes of dissatisfied citizens.

6 Peter Akos Bod, who consulted with the Tisza Party’s experts

Also a V21 member, economist Peter Akos Bod revealed at a February Tisza event in Gyor that he supports a progressive tax system. Answering a question from the audience, he said he had met with the Tisza Party’s team of experts to discuss the introduction of a multi-tiered tax system. He argued that – alongside a VAT cut – Hungary should adopt a multi-tiered PIT, and also suggested that some benefits should be abolished. As he put it: "If someone asks me, I would advise a future finance minister that if they have a mandate from society, then indeed, in the name of fairness – and if they have the media to explain what it means, then indeed – Western Europe did not invent progressive taxation by accident."

7 Gyorgy Rasko, the know-it-all green baron

Also a V21 member, Gyorgy Rasko, one of the Tisza Party’s and personally Peter Magyar’s most important advisers, also championed raising PIT. This is well illustrated by an earlier Facebook post in which he lamented that both PIT and dividend tax are low, favorable to the middle class and businesses. His problem with this was that, in his view, these groups are largely made up of Fidesz voters. He also admitted that in the event of a change of government, progressive PIT rates would be introduced, though that would be unpopular with many. In another post, he disclosed that in an online vote about the Tisza Party, he himself voted against a PIT cut.

8 Gabor Bojar, the sponsor coming from the Free Democrats' orbit

One sponsor of the Tisza Party, businessman Gabor Bojar, also bluntly declared that he wanted higher PIT rates. In a March interview with Klasszis Media, the founder of Graphisoft said: "I don’t feel that personal income tax should be lowered. Fifteen percent is not a high personal income tax, and the state needs revenues. […] I don’t think there’s room to reduce it. In fact, I think it would be normal, as I’ve often said, to allow a higher rate for higher incomes. […] Whoever earns more can afford to pay a larger share."

+1 Peter Magyar, Tisza Party chief now promising tax cuts

The icing on the cake: earlier, Peter Magyar himself flatly contradicted his current tax-cut promises. Speaking to HVG about mothers’ PIT exemption, the Tisza Party leader said: "Every four years, at election time, they throw out such scraps to try to convince women. Let’s hope everyone’s eyes are opened. […] Anyone can announce anything, I can also talk about 2033. It’s a cheap lie: someone just names a year, 2027, 2028, 2029." 

Cover photo: Tisza Party chief Peter Magyar (Photo: Balazs Hatlaczki)