Low tax burden young people...Low birth rate needs a structural approach rather than tax support"

It has been suggested that younger people need a structural approach rather than tax support to respond to low birth rates because they earn less and do not have a large tax burden.

The National Assembly Budget Office said the effective tax rate, which refers to the actual income tax burden rate, is much lower than average for those in their 20s and 30s, and the effective tax rate for men under 30 years old is 2.77% as of 2022, one-third of the average for all men.

In addition, half of those under the age of 30 were tax-free due to the high proportion of tax-free people in various deduction and reduction systems, 22% of men in their 30s and 37% of women were tax-free.

The Budget Office said tax policy efforts to support childbirth could only shrink the tax base and have a small impact on the fertility rate, noting that structural countermeasures such as work-family balance should be combined.

This year's tax law amendment included countermeasures for low birth rates, such as the establishment of a marriage tax credit, the expansion of tax exemption for corporate childbirth subsidies, and the increase in the amount of child tax credit.