Donald Tusk announced on 19 August an increase in the PIT threshold from PLN 120 to PLN 130 thousand, a fresh rate of 24 percent between PLN 130 and PLN 150 1000 and a higher CIT for companies with revenues above PLN 200 million. The government is talking about 3.5 million beneficiaries. The bill is to go to companies.
The government gives relief, but not for its money
Donald Tusk presented a taxation package for part of the mediate class. Reported Business Insider Poland The Prime Minister announced raising the taxation threshold from PLN 120 1000 to PLN 130 thousand. Between 130 and 150 1000 PLN of income is expected to be the rate of 24 percent, and only over 150 1000 PLN would be the highest PIT rate. The government declares that next year the fresh solutions will cover around 3.5 million taxpayers.
Sounds like a relief. However, we request to look at the full bill, not the conference headline. The government did not find money in the state's pocket after spending cuts, but indicated fresh sources of burden. A higher CIT for companies with revenues above PLN 200 million and a higher solidarity tribute are to finance part of the political promise.
Taxes Tusk without the amount of PLN 60 1000 free
The most apparent thing is what's not in the announcement. There is no increase of the amount free to PLN 60 thousand, 1 of the most bearable promises of the Civic Platform from the 2023 campaign. alternatively of simply relieving a broad group of working Poles, the government proposes to shift the threshold by PLN 10,000 and to add an indirect rate.
According to One in discussing taxation announcements, CIT for large entities would increase from 19 to 22 percent, and the solidarity taxation for incomes above 1 million PLN from 4 to 5 percent. The government sells it as justice. The problem is that the taxation imposed on the company seldom ends with the company. It turns into prices, investments, salaries and a lower hazard tendency.
It hits the national economy more than they like to admit politicians in love with redistribution. Poland needs capital, investment and unchangeable rules, not further proof that any relief for any can be covered with a fresh tribute for others. There's no magic money drawer in the economy.
Companies under pressure, country without savings
The government argues that the burden of change will fall on the largest corporations. The opposition responds that, in practice, part of the costs may be borne by a wider business. It's a fundamental dispute. If the state increases capital taxation, it sends a signal that economical success will be punished faster than bureaucracy forced to save money.
In the DN, we have already written that government's taxation ideas are resisting on the right, especially among the freedom groups. Sławomir Mentzen scored the task as a solution in which small companies can pay for relief in PIT. That's not a marginal remark. Polish tiny and medium-sized enterprises have been working under advanced labour costs, complex regulations and regulatory uncertainty for years.
Another DN text besides described the issue of lump sum and business concerns that Tusk taxes will put any self-employed against the wall. Even if a government communication focuses on large companies, political experience teaches caution. fresh burdens tend to spill across the economy.
National interest requires simplicity
The Polish taxation strategy has long been a maze. Each successive threshold, exception and tribute deepens the problem. The national state should make a framework in which work, saving and investing are rewarded. Meanwhile, the logic of this improvement is different: the government wants to show relief to the chosen group, and the cost is passed on to the entities that are most easy politically pointed to.
By Euronews The changes would cover around 3.5 million taxpayers in 2027. It's an crucial number, but it doesn't close the discussion. The real question is whether Poland wants to build wealth through lower and simpler taxes, or by increasingly complicated shifting of money between social groups.
For Polish families the amount in the account counts. For Polish companies, predictability is important. For the state, national capital is important, which stays in the country and creates jobs. Tusk improvement gives the government a convenient message for the conference. Poland needs a improvement that limits the state's appetite and not only changes the pocket from which the state takes money.
Source: Radio Maryja, Business Insider Polska, Onet, Euronews.
Source: Radio Maryja
