Soon, not never
As the negotiations continued it became clear that Balcerowicz's call for introduction of his plan by Sept. 20 was almost impossible. At the same time, AWS seemed determined to deal with the dilemma by playing a stall game.
The issue of tax reform is now stuck between a political rock (AWS) and a hard place (UW). On the one hand is Balcerowicz, who is looking to rush his proposals through Parliament in the blink of an eye. He has also failed to adequately lay the political groundwork necessary to ensure swift passage of such a radical proposal.
As we have said previously in this space, such a monumental change to the tax code through the elimination of graded taxation and exemptions in favor of a flat tax must be subject to proper discussion and debate. We agree with AWS that two weeks is not enough time for this to occur. Speaking at the Forum of the European Union Chambers of Commerce last week, Prime Minister Jerzy Buzek called such sweeping tax reform one of the most significant changes a country could face. He is right.
But we do not agree with what is increasingly becoming a stance of non-movement on the issue. Buzek told the EU Forum that such sweeping reforms are often years in the making. Now hold on a second. Yes, two weeks is a tad impetuous, but years is downright obstinate. Months would be a bit more to the point. The government should be able to work out the differences between AWS and UW on the issue and present to the public a plan by the New Year. That is not a crazy timetable, nor is it a tardy one. It can then allow a period of debate and go back and adjust its plan before presenting it to Parliament by late Spring.
Such a timetable would allow for adequate debate in government, the public and Parliament. And it would show the world that Poland is serious about creating a simple, transparent and equitable tax system. Such a system would help the economy grow and demonstrate a stability that investors just love.
The problem for AWS is that such a system would not allow it to create tax deductions for families. The party must realize that it can either have a simple system or one that tries to cater to special interests. It can't have both.
But because AWS has not yet figured its way out of the dilemma, the party and Buzek appear to think that it is best to let the normal government inertia take hold. In this way, the problem will just go away. The big losers from this solution will be all taxpayers. The people who fund government don't deserve to have a reform shoved down their throats as Balcerowicz initially appeared to be doing. But that is looking far better than AWS's it'll happen someday approach, meaning never.
The issue of tax reform is now stuck between a political rock (AWS) and a hard place (UW). On the one hand is Balcerowicz, who is looking to rush his proposals through Parliament in the blink of an eye. He has also failed to adequately lay the political groundwork necessary to ensure swift passage of such a radical proposal.
As we have said previously in this space, such a monumental change to the tax code through the elimination of graded taxation and exemptions in favor of a flat tax must be subject to proper discussion and debate. We agree with AWS that two weeks is not enough time for this to occur. Speaking at the Forum of the European Union Chambers of Commerce last week, Prime Minister Jerzy Buzek called such sweeping tax reform one of the most significant changes a country could face. He is right.
But we do not agree with what is increasingly becoming a stance of non-movement on the issue. Buzek told the EU Forum that such sweeping reforms are often years in the making. Now hold on a second. Yes, two weeks is a tad impetuous, but years is downright obstinate. Months would be a bit more to the point. The government should be able to work out the differences between AWS and UW on the issue and present to the public a plan by the New Year. That is not a crazy timetable, nor is it a tardy one. It can then allow a period of debate and go back and adjust its plan before presenting it to Parliament by late Spring.
Such a timetable would allow for adequate debate in government, the public and Parliament. And it would show the world that Poland is serious about creating a simple, transparent and equitable tax system. Such a system would help the economy grow and demonstrate a stability that investors just love.
The problem for AWS is that such a system would not allow it to create tax deductions for families. The party must realize that it can either have a simple system or one that tries to cater to special interests. It can't have both.
But because AWS has not yet figured its way out of the dilemma, the party and Buzek appear to think that it is best to let the normal government inertia take hold. In this way, the problem will just go away. The big losers from this solution will be all taxpayers. The people who fund government don't deserve to have a reform shoved down their throats as Balcerowicz initially appeared to be doing. But that is looking far better than AWS's it'll happen someday approach, meaning never.
