Friday, September 22, 2006

Russia Mulls Childless Tax to Encourage More Births

a top government official has come up with a plan to re-introduce the long-abandoned childless tax in Russia.
. . . Russia health and social development minister Mikhail Zurabov suggested that childless taxpayers should help the state support families with children and thus at least partially assume the cost of encouraging more births.
. . .
In his state of the nation address earlier this year President Vladimir Putin said the most urgent problem facing Russia was its demographic crisis.

The country’s population is declining by at least 700,000 people each year, leading to slow depopulation of the northern and eastern extremes of Russia, the emergence of hundreds of uninhabited “ghost villages” and an increasingly aged workforce. Official Russian forecasts, along with those from international organizations like the UN, predict a decline from 146 million to between 80 and 100 million by 2050.
. . .
Birth-rates in many developed, industrialized countries are declining. Seeking to remedy the situation, governments in many European countries talk increasingly of sanctions against the childless.
. . .
But, experts see no reason to believe that sanctions against the childless will do much to raise the birthrate. Germany, for instance, already spends more than any other country on family subsidies, and has the world’s second-highest taxes on childless singles (after Belgium).

Russian observers also doubt that such measures as re-introduction of childless tax in Russia will prompt people to have children. While rights activists denounce sanctions against the childless defending their freedom of choice, even those who back the idea in principle are not sure it will work.

These days in Russia many married couples are reluctant about having babies, even if they are well-off and can afford to multiply. Many of the generation of those who are now in their 30s and 40s have already developed a set of personal values and there is hardly a place for a kid in their lives. Maybe, they would not mind a surcharge to exonerate themselves. If, of course, they ever experience any pangs of guilt…

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