Deputy Prime Minister says a tax cut could be on the cards for low earners

Deputy Prime Minister Jerzy Hausner has declared that he is ready to talk about lowering taxation for the lowest earners. He prefers this solution to that proposed by trade unions of increasing minimal wages. Union chiefs believe that such an increase is vital because the difference between average earnings and the lowest wages is too great. "In times of high economic growth people have the right to expect wage increases," said Solidarity representative Marian Krzaklewski . But experts believe that such changes are unlikely to take place. Hausner thinks that it would be more realistic to talk about decreasing tax rates, as "In the end only 60% of a wage can be really spent by a taxpayer." Employers' representatives agree with Hausner, saying that it is most important to lower labor costs because increasing wages would discourage entrepreneurs from employing new workers. National Bank of Poland (NBP) warns that fulfilling trade unions' demands would result in price rises, which in turn would make NBP raise interest rates. (Parkiet, p. 7) D.W.