piątek, 20 sierpnia 2010

Factors Helping Economic Development


In Poland there is general trend, speaking about it, that key is freedom and freedom of trading, involving the absence of regulation, low taxation, lowcost country, without duties and boundation in adoption of economic organisation. Example of 130 years old economic stagnation of India's 0.1% percent economic development must be understood as a warning before cheapness of the country, which is deprived from the economic organisation of countries and becoming an outlet for others, which practically eliminate motivation of development, to encourage only to immigration.

In current debate we will focus on the matter concerned with taxation: whether it should increase or not, whether it is necessary to cut spending in the situation like Poland. However, it seems that we should concentrate rather on the matter how effectively we can spend our resources, in order to have expanded tax base in future. We must also consider in what direction they should be spent. In this case, the key is to determine what actually we want to achieve. The answer is that we should aim our activity in direction of developing economy and improving prosperity in the country.

The government has taken multi-year financial plan with higher VAT rate, which had not been published, despite the planned deadline of 31 July. There is also discussion in the Parliament, where Prime Minister in his speech acknowledged that Poland avoided the global crisis because one of the factors that it did not accepted persuation "to lend money to banks and other firms which bankruptted," nevertheless, 100 billion financial deficit is the fact with which the authorities must stand up. In the parliamentarian debate, MP Jerzy Polaczek accurately pointed out that 2010 is the final year when the number of people in productive age has been increased in the country, while the next year in line with the budget, there will be 100 thousand less, which will have structuraly bad impact on public finance.

In Poland, until not a long time functioned widespread belief that taxation is too high and it should be lowered, in order to generate economic growth. In a most accurate way define it Speaker Borowski: "Tax is a tribute, which is levied on citizen. Since it is a tribute, it should be reduced without inerruption, it is clear". After this he aptly added, "No, tax is an investment. This investment may be wll located or badly placed. Money from the tax can be used in a good way, for the benefit of society, and can also be wasted". One need to concentrate on investment of taxes in those areas which can generate jobs and economic growth, in the same way as it was planned in the economic growht plan of PiS in 2005, unfortunately later, it changed in decreasing taxes for the richest group.