Poland's New Pitch to Brexiting Bankers: Pay Higher Taxes
- Plan boosts social security charges on salaries above $36,000
- ‘Ignoring the needs of entrepreneurs who create valuable jobs’
After Britain voted to Brexit, Polish leaders lustfully eyed the thousands of finance jobs that might leave London, expecting banks to embrace their country for its eager young workforce, inexpensive office space, and fast-growing economy. Now, Poland is adding a less welcoming element to the pitch: higher taxes for many of the people who might fill jobs imported from the U.K.
The lower house of parliament on Nov. 24 approved a bill that would remove a cap on social security contributions for salaries topping 127,890 zloty ($36,000) per year, saddling them and their employers with additional levies. That could boost costs for banks such as JPMorgan Chase & Co, UBS Group AG and Goldman Sachs Group Inc. that have said they’ll shift some operations to Poland.