Business Criticizes Tax Hikes, Trump Pressures Iran. US Debt Hits Record High

Polish business organizations have sharply criticized the government's recently announced tax reforms, primarily due to the lack of an adequate transition period. Employers' and entrepreneurs' organizations point to the government's earlier promises of at least a six-month notice before implementing changes. The Polish Business Council warns that the proposed increase in corporate income tax (CIT) will disproportionately affect domestic firms, which have fewer options for tax optimization compared to international corporations. This could potentially reduce funds available for investment, innovation, and employee wages.

Simultaneously, the government is preparing to raise the CIT for the largest energy and fuel companies, potentially up to 30% in 2027. This move comes as President Donald Trump escalates economic pressure on Iran, leading to increased geopolitical tensions in the Middle East. The price of Brent crude oil has risen to approximately $94 per barrel, and the cost of transporting raw materials has also surged. Daily rates for chartering modern Suezmax tankers on routes from the Middle East to Asia have exceeded $162,000.

The conflict's impact extends to the European gas market. Analyses suggest that Europe might struggle to reach its target of 80% storage capacity by November, with gas contracts surpassing 65 euros per MWh. Meanwhile, the U.S. national debt has crossed the $40 trillion mark for the first time in history, prompting warnings from the Treasury Department about an increasing risk of fiscal crisis. This alarming growth is attributed to rising costs of social programs and tax cuts that fail to cover the debt servicing expenses. The debt has more than doubled since the beginning of Donald Trump's first term, when it was less than $20 trillion.