How to change the structure of the tax wedge in such a way that it helps increase employment? How to impose work income with taxes and social insurance contributions to ensure economic growth? These topics were the focus of an expert discussion organized by Employers of Poland.
The seminar was attended by a.o. Jarosław Neneman PhD, currently a lecturer at the Łazarski University, former three-time viceminister of finance; Paweł Wojciechowski PhD, Chief Economist of ZUS and former minister of finance, and Michał Myck PhD, director of the CenEA Foundation.
When assessing the structure of the tributes, guests have identified several key problems related to the impact of tax wedges on the economy, particularly on the labour market. – How to reform the tax wedge? In a way that would make getting a job, leaving the grey market and abandoning fictional self-employment profitable – pointed out Paweł Wojciechowski.
Jarosław Neneman emphasized the glaring disproportion between taxation for a hired employee and single-person firm. – The former is much higher. This chasm forces the transfer to fictional self-employment – he said.
Michał Myck PhD also mentioned the impact of factors such as the perception of the pension contribution by the taxpayer – particularly whether it is recognized as a source of future benefits. – The awareness of how the system works on the one hand, and the fact that parts of the wedge are savings for the future on the other, are particularly important. Moreover, the trustworthiness of the system is also imperative, so that employees really do treat contributions as savings to be used in the future – said Myck.
Piotr Lewandowski, chairman of the Structural Research Institute, stressed the issue of the connection between forms of employment and tax rates. – The variety of forms of contracts of employment is unheard of in Europe. Taxation should be linked to income and not the the form of a contract – he explained.
– Simple is beautiful: therefore taxes should be simple and the structure of the tax wedge should facilitate economic growth. Speeding up the pace of growth should be the main objective of the tax wedge – summarized Paweł Wojciechowski.