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Why Ukrainian labor migrants leave for Poland

Author : Vyacheslav Cherkashyn

On September 24, 2019, the Polish government adopted a draft budget for 2020, which will prolong next year significant tax exemptions for individuals
22:46, 1 October 2019

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On September 24, 2019, the Polish government adopted a draft budget for 2020, which will prolong next year significant tax exemptions for individuals:

- full exemption from tax on salaries up to 85,528 zlotys (about 21,400 dollars) for people under the age of 26 years (the norm is valid from 01.08.2019);

- the minimum rate is 17% (in Ukraine it was 18%).

At the same time, the Polish economy will grow by 3.7% of GDP, inflation by 2.5%, and real income growth by 6.4%.

Much has been written about the budget of Ukraine, among other things: GDP growth - 3.3%; inflation - 6%; the living wage would not be raised before July 1, 2020, while about 28% of the population of Ukraine live below the poverty line; tax incentives for the development of economic activity are not provided.

Related: How to stop labor migration from Ukraine?

The striking difference. But this is not the main thing. This is about the approach, the ideology. There, the Minister of Finance states that tax breaks for young people, as well as small and medium-sized businesses, will lead to "a decrease in budget revenues, but in the future they will contribute to the development of the country, economic growth and, as a result, the growth of tax revenues."

And here they directly raise the minimum wage level by 22 dollars (to simplify, they raise taxes on salaries) and tighten the screws through a significant tightening of the rules of administration and control of tax collection (project 1209 and 1210).

Related: Migrant files a petition about railway resumption between Ukraine and Crimea

Poland demonstrates work for the future and an increase in living standards by increasing wealth.

Ukraine shows toughening tax policy for the sake of macro-financial stability and peace of mind of external lenders. In fact, the Ukrainian economic authorities act primarily as an agent of IMF influence.

Related: About 1.5 Ukrainian labor migrants stay in Poland

Ukraine continues to remain in a fiscal trap: high inefficient budget expenditures and high taxes (mainly ignored by many).

And finally, as a result of all efforts, the forecast for 2019-2020: the standard of living (GDP per capita) will increase for a citizen of Poland by 1,500 dollars, for a citizen of Ukraine - by 0,57 thousand dollars.

Related: G20 calls mass migration major world challenge

Refusal of radical economic reforms means the refusal of independence of Ukraine!


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