Hungarian population falls below 10 million

By Veronika Gulyas
October 28, 2010, 10:00 AM ET The number of Hungarians dropped below 10 million in August 2010, according to official statistics, bringing to the surface the threat of extinction, present in the collective subconscious of the Hungarian nation. Preoccupation of Hungarians with the nation’s survival most likely stems from the roughly one thousand years of its history, during which the country was threatened and invaded by Tatars, Turks, Habsburgs and the Soviets, with much of its territory dismembered. Turning around the declining population trend is high on the agenda of the country’s governing Fidesz party. To promote childbirth and help families cope amid the still unfavorable economic circumstances, Fidesz plans to introduce the flat rate of the personal income tax at 16% from 2011 and allow families to file taxes jointly. The move will enable families with up to three children to get gradually rising exemptions from the tax. In addition, the government plans to relax a very strict labor arrangement to support part-time employment and flexible working hours. Only women will be able to use flexible hours, however, according to the government’s proposal. Critics of the planned tax changes have noted that they especially benefit those currently in the higher tax bracket, in particular those high earners who have many children. …