Abstract

The article attempts to answer the question posed in the title - is the tax wedge in Poland non-linear? The aim of the article is to present changes in the size of the tax wedge with the increase in gross pay and to examine whether there is a pay threshold beyond which the size of the tax wedge decreases. In the course of the research, the impact of gross pay on the size of the tax wedge was compared. The study also attempts to indicate the gross pay, beyond which the size of the tax wedge increases again.
 A hypothesis was formulated that there is a pay threshold beyond which the tax wedge loses its linear character. The comparative analysis of the size of the tax wedge was carried out on twenty-three variants of gross pay. The results show that after exceeding the gross spay of PLN 20,100, the tax wedge loses its linear character.

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