This is one of the main pulses to introduce a single tax combining the current contributions to the National Health Fund, Social Insurance and PIT over which under the supervision of the minister of Henry Kowalczyk, the Prime Minister’s Office has a team of experts. They want to achieve it by changing the structure of the tax wedge.
Wedge is the difference between the total cost of employment and the payment of someone that whoever gets into his pocket. In Poland we have very unfavorable its structure. More than 80 per cent. premiums for social and health insurance. PIT is barely 20 percent. wedge.
Rates contributions are linear, independent of income, and the progression of the minimum PIT (more than 90 percent. taxpayers pay tax at a lower 18 percent. rate). Large wedge for low-paid work is very effective, “ejector” workers into the informal sector and the medium for application of the agreements junk, especially for those who are just entering the labor market. As the problem indicates Report which reached the DGP, “How to fix the tax wedge ‘, which specially for ZUS developed Piotr Arak of Policy Insight.
New tax is to connect the PIT and contributions. And this is a good opportunity to work on a wedge – recognized experts Chancellery. It makes no sense to focus on adding another PIT rates because it achieved the effect will be negligible due to its small share in the wedge. It is better to make clear the size of the insurance part of the income.
– Progression is needed if we want to achieve growth. High wedge for those entering the job market with low-income working prohibitively. Changes in PIT will give nothing, because even when a large amount of free and so you have to drain the system 35 percent. gross salary as the social insurance contributions – says Paweł Wojciechowski, chief economist at the Social Insurance Institution, who heads a team of experts on tax.
For the lowest income contribution would be radically reduced. In one embodiment, provided is about 10 percent. premium. The result would be a net increase in wages and a simultaneous decrease in labor costs due to the declining wedge. To maintain budget neutrality and does not hurt low income earners with low pensions in the future, the budget dopłacałby insurance for the poorest and the richest increased by the load. Even eliminating the so-called. 30 times – that is the principle that after reaching within a year of income in the amount of 30 times the average salary of the next salary does not pay the insurance premiums.
VIDEO. Extended confiscation main tool for fighting phishing VAT:
No comments:
Post a Comment