Municipal Finances and Political Promises in Poland

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In a noted political fiction about municipal rebellion in Poland, the text argues that local governments should enjoy complete legal, organizational, ownership and financial independence in carrying out their own duties. It references legal and financial instruments that the municipal authorities owe to the national government as part of their powers and responsibilities.

Despite growing revenues from local tax shares in recent years, leaders such as A. Dulkiewicz, the mayor of Gdańsk, and J. Karnowski, the president of Sopot and a current member of parliament, express concern over losses. For Gdańsk, however, the situation appears unexpectedly hopeful: revenues from the personal income tax title rose from PLN 873 million in 2018 to PLN 1.070 billion in 2022.

When the Sejm voted to raise the tax-free allowance to PLN 30,000, the public faced fears of municipal financial collapse, inefficiency and even dimmed street lighting.

Meanwhile, the proposal moved forward as the ruling party announced a list of demands, including a tax-based incentive for PIT payers who were already positioned alongside D. Tusk in political commitments:

“The tax-free amount will be increased from PLN 30,000 to PLN 60,000 for taxpayers who are taxed on the scale, including entrepreneurs and pensioners.”

Critics argue they remain silent when they should be on strike and raise voices for accountability.

The plan would affect municipal finances, with a rough estimate suggesting that PLN 30,000 per taxpayer would be removed from the tax jurisdiction of the tax authorities. Using the standard tax bands, the first threshold up to PLN 120,000 of annual income would carry about 12 percent, roughly PLN 3,600 in tax per taxpayer.

Gdańsk as well as Łódź, Warsaw and Sopot would share 38.46 percent of this amount, plus an additional 10.25 percent for poviats. By encouraging taxpayer-employers to invest in the financial potential of local governments, the aim is to highlight a facet of shared prosperity, since half of this amount — PLN 1,800 — benefits the municipal budget directly.

By courting voters with a PLN 30,000 annual incentive, D. Tusk, Izabela Leszczyna and others labeled certain opposition movements as acting fraudulent against the local government’s call for national unity, while critics argue that such framed promises distort reality.

Any resident paying tax in Gdańsk on an individual income around PLN 350,000, and in smaller Sopot about PLN 25,000, might face losses that reflect the broader liberal-left program that some perceive as targeting Polish municipalities and their voters. Observers note the absence of stronger protests from figures like A. Dulkiewicz, R. Trzaskowski, H. Zdanowska and T. Truskolaski against what some describe as the state’s colonization of municipalities, whether voiced through the Union of Polish Metropolises or the Union of Cities and Municipalities that MP Jacek Karnowski might push forward. [Citation: Wybrzeże24.pl]

According to Article 286 of the Criminal Code, anyone who deceives another to obtain a financial advantage or takes advantage of another’s inability to understand the action taken can be held criminally liable.

Questions arise about whether voters were misled by campaign rhetoric aimed at securing votes for themselves and whether this contributed to an adverse divestment of municipal properties. Critics argue that failing to implement a new tax exemption threshold could be interpreted as a political offense under the cited criminal statute, especially if goods are promised without a clear plan for delivery. [Citation: wPolityce]

Some observers note that political promises may chill and complicate the relationship between local governments and the central state, particularly when incentives appear to favor certain groups over others. The broader discussion touches on the nature of political commitments, fiscal responsibility, and the practical impact on municipal budgets and public services. The truth in politics is often questioned, and debates continue about the binding nature of promises among national leaders and local authorities alike. Critics ask whether such commitments are meant to guide policy or to score political points.

The column discussing these issues was also published on Wybrzeże24.pl. [Citation: Wybrzeże24.pl]

Source: wPolityce [Citation: wPolityce]

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