Business power against redistribution: The case of watered-down tax reform in Poland

Abstract

AbstractIn 2021 the ruling party in Poland proposed a reform to reverse the regressivity of the Polish tax system. Although the number of potential beneficiaries significantly exceeded the number of sufferers, the media coverage of the reform was strongly negative. This pushed the government to introduce reform adjustments, all of which benefited the high-income self-employed, increasing the cost of the reform and reducing its redistributive effect. To explain this, we analyze articles on the reform published in the three most opinion-forming newspapers. We demonstrate that the negative media coverage stemmed from successful incorporation of business narratives in the public debate by the business lobbying associations. It was supported by the weakness of workers’ organizations and a low level of citizens’ trust in government.