Study On Fiscal Policy For Improving Fertility Level

Population issues have always been an important factor affecting the progress of economic and social.China’s birth rate has fallen below 1% for three consecutive years,with1.06 million fewer people born in 2022 compared to last year,the first negative population growth in nearly 61 years.China’s population problem is facing a serious challenge,and it is urgent to encourage fertility and raise the fertility level.One of the most important factors affecting the families fertility intentions of child-bearing age is the high cost of childbirth due to the high level of privatization and inadequate government and social contributions.China published the "three-child policy" in 2021 to raise fertility levels and improve the current demographic structure.The continuous adjustment and optimization of the fertility policy has highlighted the important influence of fertility and dependency costs in limiting the effectiveness of fertility policy implementation.As an important tool for the state to regulate the economy,promoting fiscal and taxation policy reform is an important step to promote the harmonious development of China’s fertility policy and related economic and social policies,and plays a significant part in relieving the stress of bearing and fostering costs and effectively solving the problems of Chinese families’ reluctance to have children,their fear of having children,and their affordability to have children and raise them.This paper firstly sorts out the research background and related literature,and analyzes the mechanism of the role of financial subsidies and tax policies in fiscal policy in reducing the bearing and fostering costs for families and increasing fertility wishes.Second,the paper estimates bearing and fostering costs for families with children aged 0-17 and compare the estimated cost with its ratio to GDP per capital in China and some other countries to highlight the high cost of bearing and fostering in China.Next,the article compares China’s current fiscal policies on childbirth and child support,and analyzes the problems of current fiscal policies on childbirth and child support from a macro perspective based on the current high costs of bearing and fostering in China.Based on Leibenstein’s family cost-utility theory,this paper conducts a questionnaire survey and descriptive statistical analysis to understand the economic burden of various indicators of fertility and child support costs on families,and to investigate the satisfaction with the current fiscal policies on fertility and child support and the desired improvements.The survey was conducted to find out the satisfaction of the current fiscal policy on childbirth and child support and the expected improvement of the fiscal policy suggestions.Based on the data from the questionnaire survey,relevant variables and models were further designed,and Poisson regression models were used to analyze the relationship between fertility and dependency cost indicators and the impact of fiscal policies on households’ fertility intentions.The results show that the burden of fertility costs,the burden of education costs,the burden of living costs,and the burden of opportunity costs all have significant negative effects on families’ fertility intentions,while an increase in satisfaction with fiscal and tax policies enhances families’ fertility intentions.As the link between national economic policies and micro-family fertility,fiscal policies should be optimized to further reduce the burden of fertility costs,education costs,living costs and time costs for families,so as to boost family fertility rates and promote the "three-child policy" to be effective.Based on the conclusion of data statistics analysis,this article put forward the following improvement suggestions for reducing the cost of fertility and raising and improving the level of fertility.At the financial level,expand the benefits and subsidies of maternity insurance;provide fiscal subsidies for female companies;raising subsidies for two-child and three-child families.At the level of taxation,expand the scope of enjoyment of preferential tax taxes;adjust the personal income tax deduction project and deduction amount;build a new personal income tax collection model with family as a tax unit.