Taxation and the Polanyian forms of integration in socialist and postsocialist Hungary

Reciprocity, redistribution, and (market) exchange were the “forms of integration” put forward by Karl Polanyi as a “special tool box” to investigate relations between economy society where principle price-forming markets is not (yet) dominant. Though intended basis for comparative alternative universalist assumptions mainstream (neoclassical) economics, did make significant use these concepts analyze noncapitalist societies his day. This article investigates Hungarian homeland, which in four decades socialism evolved from Stalinist central planning mixed (re)distribution was supplemented expansion market exchange, with personal taxation playing negligible role. The constellation has changed significantly postsocialist (neoliberal) era, but Scandinavian-type societal reciprocity remained elusive. Long after admission European Union, fiscal social policy regimes are distinctive form integration combines low political interventions (re)distribute resources (including transfer income EU) support formation national bourgeoisie. Theoretically, perspective socialist contrasted that liberal institutionalist economist János Kornai.