Chapter 4 Overcoming the Declining Birthrate with Basic Income and a Fair Tax System 4.4 A Fair Tax System and a Mechanism to Support Child-rearing Across Society

4.4 A Fair Tax System and a Mechanism to Support Child-rearing Across Society

"Child-rearing is the responsibility of the family."

This idea is still deeply rooted. But is it really true?

For example, let's consider roads.
Everyone uses them, but it is not the case that "only those who use them should bear the burden."
That is precisely why there is a mechanism to maintain them across society using tax money.

Isn't child-rearing the same?
Raising the "human resources" that will support the future society is a challenge for society as a whole, and not something that individuals should bear alone.

"A mechanism to support child-rearing across society"
What is needed for that is a fair tax system and the utilization of basic income.

1. What is a fair tax system?

The current tax system is not necessarily fair to the child-rearing generation.
In particular, there is a contradiction that "the more children a family has, the heavier the tax burden becomes."

✅ Heavy income tax burden: Paying high taxes while bearing the costs of children's education and living expenses.
✅ Consumption tax puts pressure on household budgets: Taxes are applied uniformly even to childcare products like diapers and milk.
✅ Inconsistent corporate childcare support: There is a large gap in welfare benefits between large companies and small to medium-sized enterprises.

So, how can we realize a fair tax system?
The following mechanisms can be considered.

✅ Strengthening "child-rearing deductions": Reducing income tax for families with children.
✅ "Mandating corporate childcare support": Ensuring all companies provide a certain level of childcare support.
✅ "Simplification of taxes": Abolishing reduced consumption tax rates, keeping them uniform, and supplementing with BI.

It is better to stop reducing consumption tax

There is an opinion that "consumption tax should be lowered for child-related products."
However, that does not work well in reality.

✅ It is difficult to draw the line on "what is a child-related product"
✅ Administrative costs are incurred every time target products are decided
✅ A sense of unfairness is created, and the system becomes complicated

In the first place, if the goal is "reducing the burden on child-rearing households," it is better to provide direct payments via BI rather than complicating the tax system.

2. BI payment amounts increase as the number of children increases

The greatest advantage of basic income is that it "lowers the economic risk of having children."

✅ BI for one person if single
✅ BI for two people if married (two shares of BI per household)
✅ Two shares even if not married, as long as there is a partner
✅ One additional share for every child added

With this mechanism, "living funds increase every time a child is added", so the burden on the family is significantly reduced.

For example, it looks like this.

👤 Single (for 1 person)
Living on BI for one person. It is free, but the household budget is individual.

👫 Couple/Partner (for 2 people)
BI for two people is provided. Even without both working, a minimum standard of living is stable.

👨‍👩‍👧‍👦 Couple + 1 child (for 3 people)
BI for three people is provided. It is easier to focus on child-rearing.

👨‍👩‍👧‍👦👶 Couple + 2 children (for 4 people)
With BI for four people, living expenses increase. Funds for child-rearing are also stable.

This reduces the pressure that "having more children makes the household budget tighter."

Can also be applied to same-sex marriage

This system uses "whether you have a partner you live with" as the standard rather than "whether you are married."

In other words, it can be applied to same-sex marriages and common-law marriages so that everyone can build a family equally.

4. Even if the BI payment amount increases, there is an expiration date

By increasing the BI payment amount, the household budgets of child-rearing families will be stabilized. However, by setting an
expiration date for BI, we should also aim to stimulate the economy.

For example,

✅ BI provided will expire if not used within 3 months
✅ It will be halved after the deadline passes

With this mechanism,

✅ an incentive to "actively consume" rather than "hoard" will work
✅ the local economy will be revitalized, and BI will be returned to society as a whole
✅ it will become a mechanism where funds as "child-rearing expenses" flow appropriately

Isn't it important to think of BI not just as a "benefit payment" but as a "mechanism to promote economic circulation throughout society"?

5. Creating a mechanism for society as a whole to support children

It is often said that "child-rearing is the responsibility of the family," but in reality, that is unreasonable.
A mechanism for society as a whole to support it is necessary.

✅ Revitalization of local communities: Establish a system where adults in the neighborhood watch over children.
✅ Strengthening child-rearing support by companies: Increase options for working from home and shorter working hours.
✅ Enhancement of schools and childcare facilities: Introduce flexible childcare systems that meet diverse child-rearing needs.

For example, in Finland, the idea that "child-rearing is society's responsibility" is deeply rooted, and comprehensive childcare leave systems and free educational support are in place.
Isn't it an urgent task for Japan to adopt such a "mechanism for society as a whole to support children"?

Summary: Toward a society that supports child-rearing with BI and a fair tax system

✅ Create a BI mechanism where household finances become more comfortable as the number of children increases
✅ Keep the tax system simple and fair without making it complex (no need for reduced consumption tax rates)
✅ Encourage the use of BI with time limits to stimulate the economy
✅ Create a mechanism for society as a whole to support child-rearing (cooperation between companies, communities, and the government)

"Child-rearing is the responsibility of society as a whole"

Isn't adopting this perspective the first step toward overcoming the declining birthrate?

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