Influence of Child Tax Credit on Inequity of Personal Income Tax in Poland

Child tax credit (known also as family tax credit) has been introduced in Polish personal income tax system in 2007. This tax credit enables every taxpayer, having dependent children, to subtract the certain amount from his (her) tax duty. As the deducted amount is quite high, analyzed tax credit caused significant change in relative situation of taxpayers having and not having dependent children. The main aim of the presented paper is the assessment of the influence of this tax credit on tax equity and distribution of tax burden among different family types. Consequences of this change are analyzed on the basis of data from Lower-Silesian tax offices.