Since joining the European Union (EU), Poland has had an extremely difficult time with the phenomenon known as brain drain. For anyone unfamiliar with the term brain drain, it is used to summarize the process of important working-age people emigrating to find work outside of their own country of origin. When brain drain happens on a wide scale it can cause entire national economies to severely slow, something that is currently taking place in Poland.
Prevents Emigration
The major reason why the Polish government is giving youth an 18 percent tax break is that it creates an incentive for those people to continue their careers within Poland. The more people that stay in Poland, the more tax revenue the country earns over the long term. A tax break now is tax revenue later.
Career Investment
Another reason why the Polish government is giving youth a tax break is that it frees up money that these qualifying individuals can use to fund their education. The more educated they become, the more valuable they will be to the Polish economy over the short and long term future.
Small Business
Many of today’s youth across Poland have a very strong entrepreneurial spirit. What they often lack, however, is the proper funding necessary to launch a small business endeavor. With the 18 percent tax break, many of the country’s youth will have much more disposable income necessary to fund a small business or other entrepreneurial projects.
Pulls People Out of Poverty
A tax break to Poland’s economically susceptible youth is a major step towards pulling many families out of poverty. A poor family, especially if it has parents in their late teens, is particularly vulnerable and prone to draw on social welfare benefits. Tax experts within Poland feel that the 18 percent tax break could be just enough to keep thousands of families across the country from falling below the poverty line.
Brings Polish Youth Back Home
The 18 percent tax break is also large enough that it has already started inciting Polish youth in the UK, Germany, and elsewhere to return home to pursue their careers. Despite the fact that these returning immigrants are getting a tax break, the fact that they are home and contributing taxes to the Polish economy is a net gain for the country.