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Poll: Less Than 40% of Poles Support Czarnek's Tax Bracket Proposal
๐Ÿ‡ต๐Ÿ‡ฑ Poland /Elections & Politics

Poll: Less Than 40% of Poles Support Czarnek's Tax Bracket Proposal

From Rzeczpospolita · () Polish

Translated from Polish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A proposed increase in Poland's second tax bracket from 120,000 to 180,000 PLN has garnered mixed public support, according to a poll.
  • The plan, part of "Czarnek's Plan," also includes exiting the EU Emissions Trading System and exempting seniors' pensions from taxes and contributions.
  • The Finance Minister estimates the tax proposals would cost the state budget 25 billion PLN annually.

Przemysล‚aw Czarnek, the ruling party's candidate for prime minister, has unveiled the initial points of his "Czarnek's Plan," including a significant proposal to raise Poland's second tax bracket threshold. The plan aims to increase the point at which the higher 32% tax rate applies from the current 120,000 PLN to 180,000 PLN annually. For married couples filing jointly, this threshold would rise to 360,000 PLN. Czarnek intends for this change to take effect on January 1, 2028.

This proposed adjustment to the tax system comes as the second tax bracket itself was only recently changed. Introduced on January 1, 2022, it replaced a decade-long threshold of 85,528 PLN. The proposal also includes exiting the EU Emissions Trading System and exempting pensions up to 2,500 PLN net from income tax and social security contributions, a move intended to encourage seniors to remain in the workforce. Another political group, Poland 2050, has also suggested raising the second tax bracket, though to a lower figure of 140,000 PLN.

This would cost 25 billion zlotys.

โ€” Andrzej Domaล„skiEstimating the annual cost to the state budget of Przemysล‚aw Czarnek's tax proposals.

However, the financial implications of Czarnek's proposals are substantial. Poland's Finance Minister, Andrzej Domaล„ski, estimates that these tax measures alone would reduce state budget revenues by 25 billion PLN annually. Domaล„ski cautioned that such a significant reduction in income would necessitate either spending cuts or tax increases elsewhere in the budget, as there is no alternative path to balance the finances.

A recent poll conducted by SW Research for rp.pl reveals divided public opinion on Czarnek's proposal to raise the second tax bracket. While 38.8% of respondents viewed the idea positively, 25.2% expressed a negative stance, and 16.8% remained undecided. Notably, 19.2% of those surveyed were unaware of the proposal. The survey also indicated demographic variations, with respondents over 50 showing less positive sentiment (30%) compared to other age groups (around 46%). Additionally, higher income levels correlated with a more positive reception of the tax bracket increase.

If Mr. Czarnek talks about a 25 billion PLN reduction in revenue in one place, he will either cut spending or raise taxes elsewhere, because there is no other way.

โ€” Andrzej Domaล„skiExplaining the fiscal consequences of the proposed tax changes.
DistantNews Editorial

Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.