Taxation represents a leading instrument of social re-distribution in a modern society. Government gains spendable revenues by taxing incomes which it van then allocate to financing as it sees fit its goals concerning social welfare, culture, economics and other fields. As a result of this process, government changes the proportion of different incomes of a given societal group, thus influencing the interests and motivations of citizens and economic units, which also change their activities as a whole. Thus, taxation represents one of the main economic political instruments of government. Being a fundamental part of sources ensuring budgetary revenues, it determines the financial possibilities of the government. By altering the types and proportions of different taxes, economic units can be motivated to different activities preferred by the government, thus influencing the measure of prosperity, employment, and structural and regional growth of the economy, etc. We wish to study the question of entrepreneurial taxation by dealing with those questions which refer to economic activity and those relevant from the viewpoint of enterprises. All the other aspects of this subject concerning taxation theory (e.g. economic, theoretical, philosophical, sociological, distributional) will not be dealt with in this present study. Our purpose is to describe of the present Hungarian system of taxation and to reveal how levies hinder mainly small enterprises from functioning and growing. Further, we wish to outline some possible changes which might facilitate the situation of the above-mentioned entrepreneurial sphere.