UW and AWS unlikely to agree on tax reform as elections take center stage

It is unlikely the ruling Solidarity Election Action (AWS)-Freedom Union (UW) coalition will conduct the tax reform it had planned, as time is ticking and presidential elections are looming. Last year the coalition prepared a tax reform plan in which, starting from 2002, only two personal income tax thresholds would exist: 18% and 28%. President Aleksander Kwasniewski vetoed this bill, but immediately afterwards the coalition vowed to return to the tax issue and be better prepared next year. However, so far the two coalition partners have not addressed the tax issue. AWS is currently worried about the selection of its presidential candidate and its low ratings in the polls. Tensions between the partners are mounting as UW is not willing to support AWS's candidate for president, while AWS did not support UW's Pawel Piskorski for Warsaw mayor. What's more, many AWS deputies are not willing to support a tax cut for top-earners. (Gazeta Wyborcza, page 24) T.J.