Despite the government’s tight assurances that the state supports the poorest and fights for the best earners to pay dutifully, In reality, this is not the case. The official data of the Ministry of Finance show unequivocally that the state taxes people with the lowest income up to 60 percent and the richest – only 20 percent.
Data provided by the Ministry of Finance show that people whose annual income does not exceed 10,000. PLN gross pay almost 60 percent! In turn, people whose gross annual income starts from 1 million PLN annually pay just over 20 percent tax!
How is this possible?
Two tax concepts are widely used. According to one, the more you earn, the higher the percentage income tax is paid. Rates vary between 18 and 32 percent. The first rate is paid on annual earnings up to 85.5 thousand PLN, and 32 percent above that figure.
In theory, it’s quite simple. In practice, people earning better than others complain that they are punished for their resourcefulness, but those earning less claim that it is more just.
The second concept is the same rate for everyone – thanks to this, the richer people pay the same tax as poor people.
For example, entrepreneurs (self-employed) in Poland very often choose a flat tax of 19%. – in this way, they often avoid falling into the second threshold.
But none of these concepts presupposes what is happening in Poland in practice. The less you earn, the higher the percentage of income the state takes. I suppose that’s crazy but it’ not just in Poland. The point is that the government should stop telling us that they are for poor people and fight to tax the rich more. It’s all lies!