The Mises Institute has launched a petition that it will submit to the Minister of Finance. The idea is to stop fraud in civil law contracts.
“To increase budget revenues, the government is considering full taxation of civil law contracts. This harmful idea will threaten the flexibility of the labor market and organic income from many Poles. In response We call on the Minister of Finance, Andrzej Domański, to abandon this solution. Our petition defends freedom of choice and labor flexibility. Join us, sign the online petition and together let’s ensure the future of the labor market in Poland,” we read on the website of the Mises Institute.
Arguments of the Mises Institute
The libertarian think tank gives several arguments:
– Minimal impact on the budget – insurance profits would be approximately 0.5% of income;
– Our long-term goals are at stake – flexible contracts offer many young people the opportunity to improve their financial situation;
– Further taxes and regulations will obviously have a negative effect on people’s financial situation and limit the flexibility of the labor market;
– The development of private insurance systems will be inhibited;
– lack of long-term opportunities for public finances;
– The bureaucratic leviathan will grow and threaten many NGOs that employ their workers under civil law contracts.
The full content of the arguments and the petition form are available on the website petycje.mises.pl.
The Central Bureau of Statistics counted how many Poles worked under civil law contracts
The Central Bureau of Statistics reported in mid-May that 2.35 million people in Poland were working under mandate and related contracts at the end of September 2023. According to data from the Central Bureau of Statistics, 9 out of 10 people with such contracts (derogatorily called junk contracts) related to the private sector.
An employee who works under a mandate agreement or a related agreement is not formally entitled to paid leave and his working period is not included in the seniority.
Taxes, which means lower wages
According to Finance Minister Andrzej Domański, taxation of all contracts could provide the state budget with an injection of PLN 7 billion from taxpayers’ pockets.
– We are currently discussing this in the Economic Committee of the Council of Ministers, because (…) it would simply mean lower salaries for some Poles – the head of the Ministry of Finance admitted in August.
Based on last year’s data, “Dziennik Gazeta Prawna” calculated that, after deducting contributions for mandate contracts and contracts for specific work, ZUS would receive PLN 4.2 billion.
The European Union demands the deregulation of civil law contracts in Poland.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
