Have Babies or Pay Tax, Says China

August 21, 2018 Taxation in China

fertility taxes in ChinaSHANGHAI – China could soon tax people for not having enough babies.

Hu Jiye, a finance professor at China University of Political Science and Law, is calling for the government to use taxes to encourage couples in the country to have more children.

The first of the two proposed taxes is a tax on the incomes of dual incomes couple with no children.

The professor claims that couples like these will end up consuming social resources, as they do not have kids to take care of them in their old age.

The collected taxes would offset the financial burden that the couples may eventually place on the government in the form of health care and social welfare.

Further, Hi Kiye called for the implementation of a fertility fund.

If enacted, the fund would see a tax paid by couples, with the collected funds being collected in a so-called fertility fund.

Any couple who is having their second child would be eligible to receive payments from the fertility fund.

Couples who do not end up having a second child would be eligible to draw from the fund upon retirement.

The intention of the proposal is to compensate couples for the loss of income and costs associated with having one part of the couple take time away from their career during their maternity leave.