According to data collected by the DGP of tax chambers child tax credit deducted from PIT and deduct social security contributions cost the state money in 2015. Approx. 7 billion zł. Another 8-9 billion zł is spending on family benefits. A 17 billion zł is the cost of additives on children from the “Family 500 plus.” A total of 33 billion zł (nearly 2 per cent. Of GDP). Absolute record.
The amount in question is the only direct transfer from the state coffers. The Supreme Chamber of Control in a report last year, recalled the amount of 32.3 billion zł in respect of various direct and indirect benefits from the central budget and local governments. Chamber treated at the matter broadly, qualifying for the system, eg. Housing policy of the state. Counting spending on health, this figure rose to more than 42 billion zł. NIK alarmed then that no one really knows how much it all cost, because there is no single coherent system of support for families.
– We have come to a situation where we have some financial instruments to support the family friendly, each of which has been developed and implemented independently from the others. It is, on what should now work with the government, some form of integrating these instruments, preceded by a detailed analysis of how this structure change, taking into account the wealth of families and the possibilities of the budget – says Michael Myck, director of the Center for Economic Analysis CenEA. In his opinion, the lack of consistency can result from the lack of clearly defined objectives, what you want to achieve, spending so much money.
– It should be clarified what the government wants this policy to achieve, that is, how to set priorities among the possible most important effects: reducing poverty among families with children, promote their financial independence through greater presence of parents in the labor market and increase fertility – says Myck.
the tax credit rewards those who work and receive income. But on the other hand, the program works, “Family 500 plus”, which may discourage work at least one of the spouses. Among other things, why Janusz Jankowiak, chief economist of the Polish Business Council, believes that the increase in direct transfers from the budget to the families of the change rather quantitative, not qualitative.
– Two percent of GDP is already a big the amount you can certainly spend effectively address better than today. We have a system cluttered, inconsistent criteria for granting support, the various grounds for granting aid. Many successive governments dokładało elements that do not make up a coherent whole. Hence this mess – Jankowiak said.
This is an estimate based on the information sent to us by the Tax Chambers. The tax for the previous year benefited 4.3 million taxpayers – little more than a year earlier. The sheer size of write-offs is also comparable, because according to the statement of the Ministry of Finance in settlements for 2014. Taxpayers wrote back 6.9 billion zł relief for children.
Why amount is not growing? Michael Myck, director of the Center for Economic Analysis (CenEA), says that even if income taxpayers increased very rapidly, and so is the amount of relief it would not have much impact. This is due to its new design in force for two years. Increased the amount of deductions for the third child (up to 2000 zł) and the fourth and each subsequent (2700 zł). Besides introduced deduction of relief from contributions if the tax paid was too low to fully take advantage of it.
– Even the rapid growth of income taxpayers so much change here. Would reduce the payments of insurance premiums and health, but would grow tax deduction – net effect would still like. Size of relief could be increased only if more parents took a job and earn a taxable income. And to this effect especially can not now count among because just running the program “Family 500 plus,” which would rather have a negative impact on the activity of parents in the labor market. If some of them give up employment, the allowance may even decrease slightly – says Michael Myck.
Traditionally, the largest write-downs were in the provinces with large urban centers. Leads Mazowsze (thanks Warsaw), where 723 thousand. taxpayers offset a total of more than 1 billion zł. In second place is the Province of Silesia, in which 503 thousand. declaration written off about 700 thousand. zł. Third place is Malopolska (Krakow): 360 thousand. write-downs totaling 660 thousand. zł.
At the other extreme were the regions with smaller populations and less wealthy. The least write-offs was in the Opole region (less than 94 thousand. To 156.7 thousand. Zł), Lubuskie (117.5 thous. To 181.8 thousand. Zł) and Podlasie (107 thousand. To 188 thousand. Zł).
Michael Myck notes that, since the modified family allowance by the previous government actually abandoned any attempts to modify the formula to support families with children. And a review of its opinion, would be very handy. The EU countries apply different formulas assist families through the tax system and is not limited to the allowances. Examples are France and Portugal, which uses so-called. quotient family: the taxpayer can collectively account for not only his wife but also with children. As a result, in addition to employment is rewarded with many children. Because even at high incomes nominally taxed high tax rate real load is much smaller.
– Meanwhile, since the introduction of the reform of the 500 plus about relief for children in Poland virtually disappeared, stopped to think about whether this form of support is effective or not. There is much talk about the educational benefits, on the other forms less. Support under the tax system can be further customized to getting it to a greater extent to working families on low incomes. The idea of subsidies for full relief from insurance premiums for those who earn too little to fully be deducted only from the advance tax is a good example of how such support can be reformed – says Michael Myck.
a good opportunity to review the operation of relief may be working on a single tax, which last in the Prime Minister’s Office. However, according to the declaration of PiS politicians relief remain in unchanged form, as well as joint taxation of spouses.
According to Janusz Jankowiak, chief economist of the Polish Business Council, a tax credit for children, even modified, the entry, which today does not accomplish its purpose. – When it was introduced, there was little direct forms of support. In time, they began to appear: these were the kinds of solutions becikowego or additives currently 500 plus. In this environment, relief from the tax does not specifically raison d’etre – says Jankowiak.
In his opinion, it would be a departure from the income as a basis for deciding on the size of support and replace it with the criterion of means.
– If the purpose of state aid would be pulling families out of poverty, means test makes more sense, because it includes not only current income, but also the family fortune. It may yet be that the family has temporarily lower income, but its resources are large. In such a situation, direct aid to it seems to be very deliberate – Jankowiak said. And he adds that there are no illusions: solutions such as child tax credit or additions recently introduced long remain in the system for political reasons. For everyone who wants to reduce them must reckon with a decline in public support.
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