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🇹🇼 Taiwan /Economy & Trade

Taiwan business leader proposes $1 million per child subsidy, funded by stock tax

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Taiwan Life Insurance Chairman and General Chamber of Commerce Chairman Hsu Shu-po proposed a government subsidy of NT$1 million per child, paid over six years, to combat the low birth rate.
  • Hsu argued that the current tax revenue, particularly from stock transactions, is sufficient to fund such a program, estimating that a few days of transaction tax could cover the costs.
  • He also suggested incentives for companies to establish childcare centers to help working parents manage family and career responsibilities.

Taiwan Life Insurance Chairman and General Chamber of Commerce Chairman Hsu Shu-po has called for a substantial government initiative to address Taiwan's declining birth rate. He proposed a subsidy of NT$1 million per child, disbursed over six years, to support young families during the critical early years of raising children until they enter elementary school.

The low birth rate is a genuine national security issue.

— Hsu Shu-poHighlighting the severity of Taiwan's demographic crisis.

Hsu described the low birth rate as a "national security issue" that threatens to severely imbalance Taiwan's future population structure, potentially reducing the proportion of children aged 0-14 to less than 10% and undermining national productivity.

He asserted that Taiwan's current tax revenue can easily afford such a program. Hsu pointed to the daily stock market transaction volume, which can reach NT$1.5 trillion, generating NT$4.5 billion in transaction tax daily. He calculated that the revenue from just a few days of this tax could fund the initiative. Assuming 100,000 newborns annually, the program would cost NT$15 billion per year, achievable with 4-5 days of stock transaction tax revenue.

With Taiwan's current tax revenue situation, it is absolutely affordable.

— Hsu Shu-poAddressing concerns about the financial burden of the proposed subsidy.

While acknowledging government efforts like extended parental and family care leave, Hsu noted practical challenges for employees balancing work and family. He urged the government to offer tax incentives for companies to establish more childcare centers and even mandate their creation for larger enterprises to alleviate parental burdens related to commuting and childcare.

Just a few days of stock transaction tax can save the low birth rate.

— Hsu Shu-poIllustrating the financial feasibility of the proposed subsidy.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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