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An OECD study finds that replacing Hungary’s flat 15% income tax with a moderately progressive system could increase employment by 1.4%, raise long-term GDP by about 1%, and boost tax revenues by 0.4–0.8 percentage points of GDP by 2040 while reducing inequality. The report argues that lower taxes for low-income workers, combined with higher taxation of top incomes and capital income, would strengthen fiscal sustainability, improve labour market participation, and create a more inclusive growth model for Hungary.