Experts want to “overturn the table.” A uniform levy instead of disputes over PIP

Instead of further changes in the powers of the National Labor Inspectorate, experts propose a real revolution in taxes and contributions. Their idea? Introduction of a single levy that will replace income tax and contributions. The solution is intended to simplify the system and equalize the workload of all employees.

The dispute over strengthening the powers of the National Labor Inspectorate is taking on a new dimension. As Money.pl found out, it was delivered to the ministers responsible for the ministries of family, finance and funds an appeal to modify one of the milestones of the National Reconstruction Plan. The signatories of the letter call for a departure from the current solutions and proposals a completely new approach. According to the website, the letter was signed by, among others: Paweł Musiałek (president of the Jagiellonian Club), Paweł Wojciechowski (president of the Institute of Public Finance), Tomasz Wróblewski (president of the Warsaw Enterprise Institute), Michał Ciesielski (president of the Center for Economic Thought), Michał Hetmański (president of the INSTRAT Foundation) and Damian Adamus (president of the National Social Institute).

A new uniform tribute for everyone

Instead of further tightening the regulations on labor market control and expanding the competences of PIP inspectors, the authors suggest a systemic change. In their opinion, this should become a new milestone in KPO preparation and implementation of a multi-year plan to introduce the so-called uniform tribute. It would replace both the personal income tax and the current contributions.

The authors of the letter argue that strengthening the National Labor Inspectorate will not solve this problem at its source. In their opinion, it is necessary to “overturn the table” and move away from ad hoc corrections in favor of a comprehensive reform of the tax and contribution system. A single levy would equalize burdens regardless of the form of employment, limiting regulatory arbitrage and incentives to push employees into less stable contracts..

A uniform tribute would require a reconstruction of the entire system

The implementation of a uniform levy would not be possible without a comprehensive reconstruction of the legal system covering both all acts regulating income taxes and the provisions on contributions. It would also be necessary to change the Tax Ordinance.

Currently, tax and contribution are separate legal categories operating in different legislative regimes, which further complicates the possible combination of these burdens. The entire project is based on based on the assumption of uniform rates too social security contributions, without discounts and preferenceswhich would mean a significant change for many groups of taxpayers. These include entrepreneurs who, when starting a business, would not be able to benefit from, among others: start-up relief, Small ZUS Plus or preferential contributions.

The latest proposal for the shape of such a reform was presented in September last year in the report “Taming tax chaos. A proposal for a reform in the spirit of a single levy”, authored by Artur Krawczyk.

Prepared by DF

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