Paulina Matysiak, a parliamentarian from the Razem party, recently became a member of parliament member of the Left Club again suspended for another three months. However, the MP from Kutno is still active and has just shared her opinion detailed calculations its proposal for changes in health insurance premiums.
Paulina Matysiak proposed reforming the health insurance premium. A reduction for the majority, the highest earners will pay more
Paulina Matysiak proposes the following changes in health insurance premiums:
- introducing an amount free from health insurance contributions of PLN 30,000. PLN for taxpayers settling on the tax scale (including entrepreneurs)
- abolition of the minimum contribution for companies (i.e. no contribution when the entrepreneur has a loss)
- increasing the contribution for JDG on the flat tax from 4.9% to 9%
- new rules for lump sum contributions (JDG, lease)
- introduction of a contribution for pensioners (currently their income is not covered by it).
Calculations show that people with up to PLN 10,000 will pay lower health insurance contributions. PLN of income. In the case of a hairdresser with this type of income, the reduction in JDG contributions will amount to PLN 225 (PLN 675 instead of PLN 900 in health insurance contributions). Also a cashier on a contract with an income of PLN 4.5 thousand. PLN will pay PLN 225 less health insurance premium (PLN 180 instead of PLN 405). The same applies to a pensioner who receives PLN 3,000. PLN (45 instead of PLN 270).
In turn, a lawyer paying flat tax on a sole proprietorship with an income of PLN 30,000. will pay a health insurance premium of PLN 1,230 higher (PLN 2.7 thousand instead of PLN 1,470). In the case of a pensioner who receives PLN 50,000 PLN of income from lump sum rental or capital gains, health insurance premium increases from PLN 0 to PLN 4.5 thousand. zloty. Moreover, calculations show that this type of burden “would almost exclusively affect 10 percent of the highest earners.”
Huge costs of the reform proposed by Matysiak. The Razem MP already has another proposal
Paulina Matysiak also asked Ministry of Finance about the effects of introducing such changes on the budget. The ministry calculated that its proposals would bring an additional PLN 22.1 billion to the budget:
- the change regarding JDG on the linear line would bring PLN 7.9 billion,
- new rules for lump sum contributions would provide an additional PLN 4.8 billion,
- the introduction of a health insurance contribution from capital gains amounts to PLN 9.4 billion.
Such an increase in revenues from health insurance premiums would be enough – as Matysiak notes – to fill the “hole” between revenues from health insurance premiums and the minimum expenditure of the National Health Fund. According to calculations, next year's shortfall in National Health Fund revenues relative to the minimum expenditure resulting from the Act is PLN 12.7 billion.
In the discussion about the health insurance premium, the topic of entrepreneurs who feel aggrieved by the tax reform introduced by PIS as part of the Polish Order. The ruling coalition is to abolish health insurance premiums on the sale of fixed assets from January 1. Matysiak, however, proposed abolition minimal health insurance premiums:
“Currently, even entrepreneurs who suffer a loss (or have minimal income) have to pay contributions. It is natural that removal the minimum contribution benefits primarily those earning less (or suffering losses). As can be seen in the chart, according to the estimates of the Ministry of Finance, the average annual benefit from this change decreases as the entrepreneurs' income increases. The total cost in 2025 would amount to PLN 2.8 billion,” wrote Matysiak.
However, the proposal of a contribution-free amount of up to PLN 30,000. PLN, would result in a loss of as much as PLN 60.2 billion in revenues next year. Such an exemption would apply to as many as 25.5 million people: entrepreneurs, employees, pensioners, uniformed services officers and beneficiaries of benefits (including maternity benefits). “In the case of the tax-free allowance, the benefits are the smallest among those earning the least (because they will not use the tax-free allowance in full) and for the remaining groups they are practically equal,” writes Matysiak.
To sum up the Razem MP's overall proposal, if it were implemented, the revenues from health insurance premiums would decrease by as much as PLN 40 billion. “Therefore, I am going to ask for additional calculations for another variant of changes: the so-called decreasing tax-free amount. This solution was already in force in PIT,” writes Matysiak.
“In short, it means that the tax-free amount is only available to the lowest earners (thanks to this, income below the subsistence minimum is protected). However, above a certain threshold, the tax-free amount gradually decreases. The highest earners cannot use it at all. This allows you to reduce the cost and direct the benefit primarily to the lowest-income groups. As a result, the system becomes more progressive,” concluded the Razem MP.