In the face of the recession, the government does not plan to withdraw from the tax increases planned for 2021. Prime Minister Mateusz Morawiecki argued on Wednesday that it is thanks to taxpayers’ money that the state can support companies and the economy. Entrepreneurs on the Prime Minister’s words will not leave a thread. There are words about false theses and a lack of logic.
- Prime Minister Morawiecki stated that taxpayers’ funds are necessary for the state to … save taxpayers
- According to the experts from employers’ organizations we asked, these words are devoid of more logic, and the trend is rather to lower taxes than to increase them
- – We absolutely do not agree with this thesis (Prime Minister – editorial note), on the contrary, it is basically false – emphasizes Dr. Łukasz Bernatowicz, vice president of Business Center Club
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Prime Minister Mateusz Morawiecki was asked about it during Wednesday’s press conferencewhether in the face of recession and uncertainty about the economic situation next year, is not considering postponing or abandoning increases and new taxes, stated that you need taxpayers’ resources to … save taxpayers.
– The IMF specified our shields as the largest in Europe when we take into account the ratio to GDP. (…) The Polish state has and will have the means to rescue the most endangered industries, a it is the vast majority of taxes that are used by Polish taxpayers to save the economy and industries that are in the worst situation – said the head of government.
The prime minister says about taxes in 2021. Entrepreneurs: “No logic. False theses”
The Prime Minister’s words were widely echoed in business circles. They accuse Mateusz Morawiecki of translating the square of the circle and making a completely illogical argument.
– The prime minister probably had redistributive functions of taxes in his head, i.e. we are taking one place to redirect the stream of funds to another place. In the context of new taxes in 2021, there is no greater logic in the Prime Minister’s words. Let’s have a look. The government wants to double tax limited partnerships, introduce a sugar tax that will hit primarily consumers and domestic, weaker producers of juices and beverages, and finally a trade tax leading to an increase in prices – says Przemysław Pruszyński, tax expert in an interview with Business Insider Polska from the Lewiatan Confederation.
In his opinion, what is the situation? “By saving the economy, as the Prime Minister says, we are introducing new taxes that may significantly worsen the condition of Polish entrepreneurs who generate income for this budget. What’s more, employers pay contributions from their employees, and a deterioration in their situation may mean layoffs, which will also reduce budget revenues. So this is a wrong assumption – he explains.
According to him, the government should take a completely different path. – The trend is that taxes are lowered in a crisis. Germany reduced VAT, The Czechs are seeking to cut income tax. We are going against the tide and by saving the economy, we are increasing the state’s fiscalism. This is not the way to go – he convinces.
Indeed, currently in the senate of our southern neighbors lies the largest tax cut in the history of the Czech Republic. Income tax is expected to sleep with 20.1 percent. up to 15 percent At the same time, the solidarity tax of 7% will be abolished. (from 4 times the average earnings in the Czech Republic) and a new threshold of 23 percent was introduced. The whole is to reduce the income from PIT by 40 percent, or about 2 percent. Czech GDP (approx. PLN 14 billion).
The economists we asked explained that a similar move should be made in Poland. This is, in particular, about reducing the taxation of the lowest-earning compatriots, because the current system in the country is simply unfair and there is practically no difference in the tax wedge between low and high wages.
False thesis
Dr. Łukasz Bernatowicz, vice-president of the Business Center Club and vice-president of the Social Dialogue Council, is of a similar opinion as the Lewiatan expert.
– We absolutely do not agree with this thesis, on the contrary, it is fundamentally false – emphasizes Bernatowicz.
– The additional burdens will aggravate the already severe effects of the pandemic on entrepreneurs. This is not the time for such steps! In other European Union countries, taxes for companies are even reduced – he adds.
Łukasz Kozłowski, chief economist of the Federation of Polish Entrepreneurs, agrees. As he points out, it cannot be the case that in the same year, support for entrepreneurs is given to one pocket, and funds are taken from the other.
– Aid is financed from an increase in the deficit, and only after emerging from the crisis is the consolidation of public finances. There is no point in doing this at the same time – he sums up.
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