The average OECD tax wedge in 2024 amounted to 34.9 percent and increased compared to 34.9 percent a year earlier. It is a tax situation of a lonely person. In 2024, Poland had 24. The lowest tax wedge among 38 OECD member countries, taking the same position in 2023 – was given in the report.
The tax wedge is income tax plus social security contributions paid by an employee and employer, minus returnable cash benefits. In other words, the wedge includes, among others 800 plus program and pit returns.
Not including the returnable cash benefits, in Poland income tax and employer's contributions for compulsory social insurance They constitute a total of 56 percent. total tax wedge, compared to 77 percent On average in OECD.
Lower taxation with children
There are ideas among politicians to motivate young people to start families and bother children with tax adapter, i.e. something like “bull tax” from the past. Informally, however, such domiors already exists, because Families with children pay much less, which results, among others from pit returns and 800 plus benefits.
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“A tax wedge for an employee with children may be lower than for an employee with the same income without children, because most OECD countries provide benefits to families with children through cash transfers and preferential tax regulations” – indicated in the report.
Poland had in this approach 34. The lowest tax wedge for 38 countries for the average employee who is married to two children, amounting to 11.9 percent in 2024, with an OECD average of 25.7 percent In 2023 we occupied the lowest position. It can be said that in the tax and contribution issue, the state is already doing a lot, so low reproduction is a matter in which additional benefits will not help much anymore.
Read also: The government will cover us with tax changes. You can get lost in the announcements
“Tax -related benefits and tax regulations tend to reduce the tax wedge for employees with children compared to the average lonely employee. In Poland in 2024 this reduction (22.8 percentage point) was greater than the average OECD (9.2 percentage point)” – comments OECD in the report.
In the years 2000–2024 in Poland, a tax wedge for an average lonely employee decreased by 3.5 percentage points from 38.2 percent. up to 34.7 percent At the same time, the average tax wedge in OECD decreased by 1.3 percentage points from 36.2 percent. up to 34.9 percent
But already In the years 2009–2024 the tax wedge for the average lonely employee increased in Poland by 0.6 percentage points. At the same time, the tax wedge for the average lonely employee in OECD increased slowly to 35.2 percent. in 2013 and 2014, after which he fell back to 34.9 percent. in 2024
Author: Jacek Frączyk, Business Insider Polska editor
