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

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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
No. 1-16
tz1
tz1

We do the same thing, but only if the kid is born out of wedlock, likely in an inner city to a welfare mother.

KidHorn
KidHorn

In the US we have similar incentives. The more children, the bigger the welfare check. Problem is it only encourages those on welfare to have kids. And those kids have a preponderance to end up on welfare too.

KidHorn
KidHorn

The only part of the world with population growth is sub Saharan Africa. And they have too much growth. The problem is government ponzi schemes require an ever growing population and nobody wants blacks emigrating to their country.

Sechel
Sechel

i'm going to speculate that the poorest and least educated will most respond. It could be that such a policy increases gov't outlays more than intended. The better educated and more affluent women probably will not respond to such incentives. There's probably more at play in declining birth rates than simply taxes.

Webej
Webej

This will cost next to nothing. How many women with four children have a large income tax liability, after existing deductions for the children? They're lucky to do some part-time work. Any scheme that creates an incentive for children is a good investment in the future of pension liabilities and the credit-worthiness of the state. It is also has a much higher return on investment than unskilled migrants who will break the social solidarity and cooperation, bankrupt the social safety net, and eventually displace the population.