Impact of Selected Tax and Social Security Reforms on Household Income in Poland

• Authors: Morawski L.
• Languages of publication: PL

Abstracts

EN

Two major tax and benefits reforms were implemented in 2007 in Poland. In the first one a rate of disability contribution for social insurance was lowered form 6.5% to 4.5% while a tax child credit in an amount of 1145 PLN was introduced in the second one. A paper compares implementation costs for these and some other potential tax and social security reforms as well as presents some distributional consequences of the reforms. Potential reforms include: flat-tax reform with a 18% tax rate, two tier personal income tax system with 18% and 32% rates, rising an amount of revenue costs for a permanent employment. The results obtained by using a tax-benefit microsimulation model SIMPL showed that the rising a revenue costs for a permanent employment would have been the most efficient reform in terms of lowering the at-risk of poverty rate. It is shown that introduction of a child tax credit of 1145 PLN in 2007 was not an effective anti-poverty policy.

Keywords

EN

AT-RISK OF POVERTY RATE; SOCIAL REFORMS EFFECTS; TAX - BENEFIS MICROSIMULATION MODEL

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Institute of Labor and Social Studies, Warsaw
• Journal: Polityka Społeczna
• Year: 2008
• Volume: 35
• Issue: 8(413)
• Pages: 8-13
• Document type: ARTICLE

Contributors

author

Morawski L.

• L. Morawski, Uniwersytet Warszawski, ul. Krakowskie Przedmiescie 26/28, 00-927 Warszawa, Poland

Identifiers

CEJSH db identifier

08PLAAAA05139758