Hungary's PM Pledges Zero Income Tax to Women with Four Kids

The birth rate in many European countries has plunged. Hungary's Victor Orban wants women to have more kids.

In a move to counter falling population without allowing migration, Victor Orban promises Hungarian mothers Have Four Children and Pay No Income Tax for life.

“There are fewer and fewer children born in Europe,” Mr Orban said during his annual State of the Nation address. “For the west, the answer is immigration. But we do not need numbers. We need Hungarian children.”

Orban did not say how he would pay for the scheme. Of course, no one ever says how they will pay for any scheme.

Poland and Serbia have similar proposals on the books.

Have-a-Kid

  • Poland gives 500 zlotys a month, about a third of the minimum wage, to mothers for their second and subsequent children. That about $130 per month.
  • Serbia gives 12,000 dinars to families with three children and 18,000 dinars for the fourth. That's about $114 and $172 per month respectively.

Serbia Population

Starting sometime between 1995 and 2000, World Odometers shows Serbia started losing population and it has continued ever since.

Hungary Population

Poland Population



The EU allows freedom of movement. Those in Eastern European countries are voting with their feet.

Mike "Mish" Shedlock

Comments (39)
No. 1-15
Carl_R
Carl_R

Economics was given the name "the dismal science" due to the theory of Malthus that in times of abundance human population would increase until the population was once again limited by the means of subsistence. It seems we have found a way out of that trap.

Escierto
Escierto

It's obvious the populations of these countries see no future there which is why these cockamamie schemes have no chance of working. Why not enact economic reforms that free the people like less regulation and low taxes for all?

shamrock
shamrock

Why do they need more people?

Schaap60
Schaap60

It looks like the population in each of the countries has fallen since the year before the highlighted periods since the "yearly change" is based on the previous period. For example, Hungary's population has been declining since 1980. Of course, it's possible it went up from 1980 to 1981, only to fall by a larger percentage over the rest of the five year period. In any event, those are very long-term declines.

Mish
Mish

Editor

Latkes: "It will cost very little, because there will be very few takers. You can't meaningfully increase natality by bribing women."

Mish: The FT reports "the initiative costs more than 1 percent of Poland’s GDP" That's quite a bit