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European Courts rules that 98% tax rate is in breach of human rights!

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An aggrieved public sector worker in Hungary was dismayed when a lump sum, paid to her on retirement, was taxed at 98%.

She appealed the imposition of the tax to the European Court of Human Rights. The Court ruled that the legislation, imposing the 98% tax, was in breach of Article 1 of the first Protocol of the European Convention on Human Rights. It awarded her damages of 11,000 Euros and costs of 6,000 Euros.

Older readers may remember that the UK imposed a similar rate of tax on investment income in the 1970’s when Lord Healey was Chancellor of the Exchequer.

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