Mihalyi on Social Security

http://www.portfolio.hu/gazdasag/adozas/mar_a_nav-ban_is_adocsalok_dolgoznak.207077.html - Hungarian economic news portal portfolio.hu reports: Visiting Professor in the Department of Economics at CEU Peter Mihalyi published an OpEd entitled „Tax Swindlers are Working in the Hungarian National Tax and Customs Administration Too.” In the article Mihalyi discusses the results of the Hungarian social security system, established in the 1990s, which aims at financing pensions and health care from the subsidies of wages. He claims the problem is not with the tax on wages but the subsidies on social security: if a company is honest in declaring all the subsidies, its services will become tremendously expensive – which leads to people working in the black market.