Childless Tax

The content of the article

• Tax on childlessness in the USSR
• Tax cancellation
• The demographic situation in Russia
• What is being done to fix
• Do you need a tax on bachelors
• How to stimulate fertility

The deterioration of the country’s demographic situation (for example, the decline in the birth rate in 2019) requires a response from the government. As one of the options, the idea was proposed to introduce a special tax. It would be paid to citizens who have no children.

Tax on childlessness in the USSR

In 1941, a special fiscal deduction was introduced – “Tax on bachelors and small families”:

• The base rate was 6% of the salary. Between 1949 and 1952, a tax on the absence of children for rural residents was increased. Its size was 150 rubles. annually for children without children, for those with one child – 50 rubles, for those with two – 25.
• Payers were males from 20 to 50 years old and females from 20 to 45.
• Tax ceased to be levied after the birth or adoption of a child. If he was the only one in the family, then with his death fiscal deductions resumed.
• For persons with a salary of 70–91 rubles. there were benefits. Students of secondary and higher educational institutions, Heroes of the Soviet Union, etc. also had certain advantages. In the late 80s, within a year after marriage, the newlyweds were exempted from payments for childlessness for 1 year.
• For those whose earnings were less than 70 rubles, no tax was levied. The persons whose children died in the Great Patriotic War were also freed from it. It did not apply to the inhabitants of the monasteries, who took a vow of celibacy.

Tax cancellation

Deductions for childlessness began to be phased out in the early 90s. and the process was scheduled to be completed in 1993. In fact, this happened earlier – they did not begin to charge him already on January 1, 1992 due to the collapse of the Soviet Union.

The demographic situation in Russia

Specialists characterize the current birth rate in Russia as catastrophic.

According to the results of the first half of 2019, the natural population decline amounted to almost 200 thousand people.

This is the largest figure in the last decade, it is 21% higher than the same period last year..

High mortality and low birth rates are offset by natural migration:

What is being done to fix

• In June 2019, during the Direct Line, Russian President Vladimir Putin announced a new allowance for the care of children from 1.5 to 3 years old. The current amount of the subsidy is 50 rubles., The expected – 10-11 thousand rubles..
• In 2018–2019 a preferential mortgage was launched for large parents with a reduced rate and subsidy from the state. Currently, in Russia such families make up only 6.5% of the country’s population, but 20% of children are brought up in them.
• Consideration of the draft law on new fiscal deductions for childless citizens.
• Extension of the program for the issuance of maternity capital. In 2019, the amount of this social payment is 453,026 rubles, and it will be issued at least until 2021.
• The introduction of new federal and regional benefits and subsidies for certain categories of citizens with children. For example, from 1.07.2019 in Russia it was increased from 5,500 to 10,000 rubles. allowance for the care of a disabled child.

Do you need a tax on bachelors

A draft law “On the Status of Large Families” was submitted to the State Duma. It is proposed to introduce a special deduction for it – “tax on bachelors”.

They will have to pay it:

• parents with only 1 child;
• childless citizens (not due to medical contraindications).

Advantages of this legislative initiative:

• Increase in cash receipts to the budget. At the same time, the lack of information on a specific tax amount does not allow to accurately calculate the economic effect.
• Fertility increase. According to statistics, the country has a very high percentage of childless families – about 18%.

Minuses:

• An attempt to solve demographic issues by means of financial deductions from a certain category of the population, the closest analogue of which are fines.
• The negative attitude of society to this form of deductions.

How to stimulate fertility

Instead of a tax on childlessness, which is not approved by society, in our country there is a wide range of measures to support families with children. This also includes personal income tax benefits..

How in this case the size of the monthly deduction changes:

Citizens without children are forced to pay personal income tax in full – at least 182 rubles. higher.

A similar version of fiscal policy is called by many state and public figures an analogue of the childless tax. From a social point of view, this approach is fairer, as it stimulates families that have at least one child, and does not charge additional funds for citizens without children.