Heavy burden
Last week witnessed the annual Tax Freedom Day - the point in the fiscal year that the Adam Smith Center (ASC) calculates all government income from taxation.
In fact, last Wednesday was the day named by the center, based on the calculation of the share of public spending in GDP, with the Finance Ministry's budget plan serving as a base, when the country notionally no longer pays tax.
This year the Adam Smith Center used Tax Freedom Day to highlight how the whole tax system needs a radical revamp. A report issued by the group says Poland's tax regulations are "the primary cause of the dramatically high unemployment level."
The center concludes there have been no visible changes in the structure of public finance income - the bulk of which is still generated by levies on work, entrepreneurship and social services. The center says this results in the high unemployment level, which ASC labels Poland's most painful problem.
The country's 18-plus percent unemployment rate is in fact larger, according to the center, because government statistics do not include early retirement, those on disability pensions, and so-called hidden-unemployment in rural areas. Estimates suggest this group could total 1.1-1.3 million people.
The report doesn't agree that the high economic growth is the key to reducing unemployment. Poland's growth has been significant in the last few years, but it has had very little impact on unemployment.
In fact, last Wednesday was the day named by the center, based on the calculation of the share of public spending in GDP, with the Finance Ministry's budget plan serving as a base, when the country notionally no longer pays tax.
This year the Adam Smith Center used Tax Freedom Day to highlight how the whole tax system needs a radical revamp. A report issued by the group says Poland's tax regulations are "the primary cause of the dramatically high unemployment level."
The center concludes there have been no visible changes in the structure of public finance income - the bulk of which is still generated by levies on work, entrepreneurship and social services. The center says this results in the high unemployment level, which ASC labels Poland's most painful problem.
The country's 18-plus percent unemployment rate is in fact larger, according to the center, because government statistics do not include early retirement, those on disability pensions, and so-called hidden-unemployment in rural areas. Estimates suggest this group could total 1.1-1.3 million people.
The report doesn't agree that the high economic growth is the key to reducing unemployment. Poland's growth has been significant in the last few years, but it has had very little impact on unemployment.
