The New Hungarian Family-Friendly Tax System Boosted The Propensity To Take On More Children

  • 22 Jun 2012 8:00 AM
The New Hungarian Family-Friendly Tax System Boosted The Propensity To Take On More Children
The proportionate flat rate tax system has delivered the expected results. The family tax allowance introduced together with the proportionate flat rate tax stimulates families to take on more children which impact has also been manifested in the significant increase of the number of births.

In 2010, after the government was inaugurated, it introduced a family-friendly tax system. Due to that, last year 800 000 parents could claim family tax allowances of almost 160bn HUF. This was the extra amount which was left at families. As a consequence of this family-friendly tax system, real incomes at families with three children increased by almost 20 percent.

In the tax system, which has been aiming for a proportionate, work-centered economy, therefore a change of attitude has taken place and in line with that the state leaves the income necessary for raising children at families.

As a consequence, in 2012 so far 5.2 percent more children were born than in the corresponding period of 2011, therefore available data gives reason for hope.

The measures of the government aimed at boosting the propensity to take on more children – which include the family tax allowance – managed to halt the decline of the number of births which had been brought on by the extremely counterproductive measures of previous governments.

Source: kormany.hu - Ministry for National Economy

  • How does this content make you feel?