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No Elderly Country? Poland lacks income tax for young people



The new law, which enters into force in Poland this week will abolish income tax for approximately 2 million young workers.

Poles under the age of 26 who earn less than 85,528 Polish zloty ($ 22,557) a year will be exempt from the 18% income tax on the country from August 1. The aid is generous, given that the average Polish salary is just under 60,000 zlotys ($ 15,700) a year.

The government has stated that 2 million people will be eligible for compensation.

  Seasonal workers from Poland harvest white asparagus in Germany.
When Poland and seven other Central and Eastern European countries joined the European Union in 2004, its citizens earned the right to work throughout the bloc without the need for a work permit or visa.

When arguing for a new law in parliament, Moravetsky said that 1.7 million people have left Poland in the last 15 years. "It's like the whole city of Warsaw has left … it's a gigantic loss," he said.

"This must be over, young people must stay in Poland," Moravecki added.

Emigration had a negative impact on the economy. "Over the last three (or) four years, we started to notice a shortage of workers and (realized) that we needed these people back," said Barbara Jantsevic, who heads the Migration Economics department at the Center for Migration Studies in Warsaw. [19659011] European Union takes legal action to protect Polish judges "data-src-mini =" // cdn.cnn.com/cnnnext/dam/assets/180704100753-02-poland-judicial-reform-0703-warsaw-demo -small-169.jpg "data-src-xsmall =" // cdn.cnn.com/cnnnext/dam/assets/180704100753-02-poland-judicial-reform-0703-warsaw-demo-medium-plus-169. jpg "data-src-small =" http://cdn.cnn.com/cnnnext/dam/assets/180704100753-02-poland-judicial-reform-0703-warsaw-demo-large-169.jpg "data-src -medium = "// cdn.cnn.com/cnnnext/dam/assets/180704100753-02-poland-judicial-reform-0703-warsaw-demo-exlarge-169.jpg" data-src-large = "// cdn .cnn.com / cnnnext / dam / assets / 180704100753-02-poland-judicial-reform-0703-warsaw-demo-super-169.jpg "data-src-full16x9 =" // cdn.cnn.com/cnnnext/ dam / assets / 180704100753-02-poland-judicial-reform-0703-warsaw-demo-full-169.jpg "data-src-mini1x1 =" // cdn.cnn.com/cnnnext/dam/assets/180704100753-02 -poland-judicial-reform-0703-warsaw-demo-small-11 .jpg "data-demand-load =" not-loaded "data-eq-pts =" mini: 0, xsmall: 221, small: 308, medium: 461, large: 781 "src =" data: image / gif; base64, R0lGODlhEAAJAJEAAAAAAP /////// wAAACH5BAEAAAIALAAAAAAQAAkAAAIKlI + py + 0Po5yUFQA7 "/>

of those who left. The 22-year-old corporate analyst came to London to study and stay after getting a finance job.

Although she believes the government's proposal is generous, it will not be enough to persuade her to return.

"To get young people to stay in the country, I don't think this is the way to go," she said. "It's about building opportunities and opening up sectors that are attractive to young people right now."

Immigration experts are also not convinced that the strategy will work.

"It's not all about the money," says Heather Rolf, head of the Employment and Social Policy team at the National Institute for Economic and Social Research, London think tank.

"Studies conducted on young Polish migrants in the UK have highlighted that often young people leave as a type of ritual to pass, they will go out of their family to gain some independence," she explained,

Kitovska agrees. Salary, while important, is not a priority. "I'm looking for opportunities, not money in the short term," she said. The job he got in London doesn't really exist in Poland. Most of the financial jobs available there are in the back offices, the behind the scenes of the non-client business. "You don't have that many options in the reception area," she said.

The United Kingdom is the most popular destination for Polish migrants since 2004: almost 1 million people reside in the British Isles. Despite the great economic achievements that Poland has achieved in recent years, wages are still significantly higher in the UK. "The 18 percent tax break is a lot, but it still doesn't close the gap (profits) between Poland and the United Kingdom," Jancewicz said.

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[1965] tax is just one of many welfare gifts announced by the ruling Law and Justice (PiS) ruling party before the European elections in May. A general election is due by November.

The government expects the welfare package, which includes new benefits for families with children and the payment of bonus pensions, to cost PLN 40 billion ($ 10 billion).

Moravicki insists reforms are investments in society and the economy. And while the bill has received enormous support in the PiS-dominated Polish parliament, it has drawn some criticism.

Richard Petru, Member of Parliament for the opposition Now! the party called the measure "extremely deceitful populism."

  The Polish Government wants young people to stay in the country.

Speaking to parliament, Petru said that instead of making the younger ones better, the expensive new law would likely lead to a reduction in employers' salaries, keeping pay packages taxes after taxes the same.

"And what will happen when they are 26 years old? They will be cut because they will suddenly be more expensive," he added.

Rolf said that the age limit is likely to disqualify those who are already abroad and are thinking of returning to Poland. "The time when people start thinking whether they want to stay or return to their own country is a little later when they have decided they will have children, something from the late 20s, early 30s ", she said

However, the law can help convince those who are thinking of leaving to stay.

"It is much more important for those who are still in Poland and have not yet migrated, because this promotes more stable employment and gives them some benefit … so that they may be more likely to stay in Poland. " Jancewicz said.

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Even if the policy working on purpose, the Polish people can rethink their British future. The decline in the value of the pound after the 2016 referendum on Brexit made work in the UK much less attractive.

The atmosphere also ignited. The debate over Brexit has focused on immigration statistics, with police statistics showing that reported hate crimes against immigrants have increased since the referendum.
The confusion surrounding Brexit and the country's future migration policy are already pushing people away. Statistics show that more Polish people are now leaving the UK than arriving.

The UK Government's birthing policy and perceived British hostility to migrants may prove more effective in forcing Polish migrants to return home than any tax relief. CNN's Tara John contributed to this report.


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