Friday, October 5, 2012: 4:55 PM
The present crisis has forced almost all countries to introduce an active economic policy. A lot of attention has been paid to fiscal policy and taxes. The paper presents solutions in fiscal policy applied in Poland and explains the specificity of Poland’s economy and its anti-crisis policy (in comparison with other EU countries).
Changes in the Polish fiscal and tax policy have been moving in a direction other than the tax reforms in the EU-15. Tax cuts carried out between 2004 and 2009 were to a large extent random and were motivated by political reasons. In practice, it turned out, however, that they triggered the demand mechanisms that made the economic crisis in Poland run smoother than in other countries. However, lower budget revenues due to tax cuts led to a significant increase in public sector deficit.