Poland to Join Flat Tax Club?

It’s a bit too soon to crank up the unofficial theme song of the flat-tax revolution, but it appears Poland will be the next nation to hop on the flat-tax bandwagon. Because of Poland’s large population and proximity to Germany, this will create additional pressure for better tax policy in Western Europe’s welfare states.

The UK-based Guardian reports:

Poland’s centre-right government plans to introduce a low, single-rate income tax by 2011 at the latest, Prime Minister Donald Tusk said on Friday. …”On Sunday we will announce a specific timetable for launching a flat tax,” Tusk told radio RMF FM. “2010 seems to be the most likely date of introducing the flat tax, 2011 is the worst case scenario.”

Poland now has a progressive personal income tax with three rates of 19, 30 and 40 percent. A source familiar with the matter told Reuters the flat tax would likely be set at 17 percent….

Finance Minister Jacek Rostowski said on Friday that taxes had to be lowered to ensure growth stays high in central Europe’s biggest economy. Tusk led his Civic Platform to an election victory last October by attracting young, educated and urban voters on promises of lower taxes [and] less state intervention in the economy.