Family Ministry: It is difficult to justify further tax preferences for families with children

It is difficult to justify further tax preferences for families with children, because they already belong to the highest in OECD in Poland – he said in response to the parliamentary interpellation of the Ministry of Family and Work (MRPiPS). According to the ministry, e.g. tax breaks proportional to the number of children are more effective.

“It is also difficult to justify further tax preferences for families with children. Poland already belongs to OECD countries with one of the highest tax preferences for such families. This means that their tax burden is significantly lower than in the case of singles. In 2023, the model single had a wedge by 18.5 percentage points higher than a model family with two children and one working parent. It was the third highest level of preferences among OECD countries, “says the Ministry of Family, Labor and Social Policy.

“Studies indicate that cash transfers usually have a slight positive impact on fertility, but also often turn out to be inefficient. Just like a tax quotient (tax -free amount for each family member – PAP) involves significant costs for the public finance sector and go mainly to families who already have children, or to people with the highest income, for whom financial issues do not constitute an important barrier in increasing in increasing. Families. As a consequence, a more effective solution is tax breaks proportional to the number of children and the possibility of reimbursement of unused part of the relief ” – added.

The Ministry of Family and Work estimates that the impact of cash transfers on increasing fertility in developed economies is limited.

“This applies to both cross -sectional measures and cohort of fertility rates, i.e. the number of children per woman during the entire reproductive period. In addition, the observed effects are more likely to affect women who already have children and thanks to support decide on subsequent offspring. The impact that would be introduced to the introduction of another tax preference to reduce childlessness identified today as one of the main factors of the general inheritance Small ” – added.

At the beginning of August, President Karol Nawrocki sent a bill to the Sejm to introduce a zero PIT rate for families who have two or more children. The president also proposes to increase the 2nd tax threshold to 140 thousand. zloty. (PAP Biznes)

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