Not long since the implementation of Mateusz Morawiecki’s plan for Poland that I mentioned in the previous article on similar topic, I’ve decided to discuss further improvements that quickly appeared concerning the Law and Justice Party rule and their impact on society. As a citizen of Poland I will endeavour to present my own student view on the current issues revolving around this beautiful and constantly developing country.
Morawiecki’s plan embraced 5 improvements which have been fulfilled. Now, it is time for 5th of Kaczyński, another “benefits and improvements” pack that has been approved and is to take its course over different periods this year. These postulates look really promising, but there is one concern over the issue of funding. Is Poland’s GDP really so huge that it can withstand financing all of these improvement initiatives? Is there a special sum of money allotted or set aside in order to finance the plan? I will present the postulates first and strive up to answer this crucial question. The fact is, however, that most of the ruling party’s promises have been fulfilled during their tenure. That makes the public trust in them even more; their electoral ratings have, in turn, remained high.
First, 500 pln is to be granted to each family for its first-born child. The previous plan embraced 500 pln allowance for every child starting from the second one, but now families get money notwithstanding the number of children they have. That is a considerable step towards improving demographic downfall caused by emigration, which totals around 2.5 mln of Poles living abroad. The most common countries visited by Poles are the UK, Germany, Holland and Ireland.
Second, a general pension plan across society is to be instituted across all walks of society. This is the levelling of the minimal pension and annuity of 1100 pln for all benefiters. Regardless of salaries of the elderly, those who are eligible for the pension will get the same starting minimal amount of 1100 pln. This is a great initiative; many poorer people could face problems and accumulate little amounts in their pension plan – the government wants to bolster the general welfare, ensuring that poorer would-be retirees are not faced with drastic cuts to standards of living or forced to give themselves to any low-paying job that will keep them alive.
Third, there will be large-scale improvement of the transportation system in boroughs and rural areas. This seems to require quite a big spending, but there are still many villages where people rely solely on their own cars. The government pursues the plan of recent public transport system renewal in areas that are currently very difficult to access. Around 14 mln poles are to be given an easy transportation system in the remotest places in Poland – despite the high costs for such infrastructure, this is a necessary change that the nation must make if it wishes to compete in the growing and developing digital era.
Fourth, young people up to the age of 26 will no longer be subject to income tax. Young Poles – currently among 35% of whom are employed below the target age – will be incentivised by the lack of income tax to enter the job market.
Last but not least comes a reduction of the income tax rate. Although it is only 1% – from 18% to 17% – it will have a significant effect on the 25 mln citizens paying this tax. It will cost the state around 3,5 mld pln which, in my opinion, is a great solution, taking into consideration all previous amendments.
All postulates that I put forward are really promising, with a predicted overall government cost of around 40 mln pln. Is Poland wealthy enough to fulfill such costly initiatives? To answer this question, the prime minister explained that the funding (i.e. better and abundant living within the European standard) is to be drawn from tax offences and foreign group tax evasions. In simple terms, money will be extracted from the so-called hidden economy, for example requesting international corporations to pay their taxes in places of business activity. Such progressive government action is a welcome necessity. These plans will have drastically positive effects across the nation.