Should tax payers help pay for other peoples children?


There is an interesting debate going on over here in Australia at the moment and the topic is if tax payers should be asked to help pay for the costs associated with having children. Essentially it all boils down to people who either don’t have children, or only have 1 child paying more by way of not collecting tax benefits.

It’s a really interesting thing to think about, particularly as a parent of a young child. My wife and I received very little from the government when our son was born, and we receive nothing now.

I remember my wife and I having a conversation about if it was going to be worthwhile for her to go back to work or not. Long story short, we ended up deciding that she would be best off staying at home, as after all the childcare costs she would only be bringing home about an extra $100 a week, but would be away from our son for 5 days out of 7 – not a great deal.

A big part of the calculations that went into that decision was how much money the government would provide us each week. As it turned out, we weren’t going to get all that much money, because as a combined income we would be earning what is considered an above average wage.

Having said that, I do know that many people get large government handouts to help pay for their living expenses and to help them raise their children. Which takes me back to the main point of what I am writing about – is that something the government should be doing or not?

If the government doesn’t help these families, the children will miss out (through no fault of their own), yet it isn’t exactly fair to people who are being asked to pay an ever increasing amount of tax, to support a system that rewards people for having children they can’t really afford to have.

From a country point of view, I know the government likes the population to always increase (it increases the tax pool and adds wealth inot the government coffers), but I struggle to see why people who don’t have children should have to pay for those that do.

It’s an interesting debate, and one that I don’t really have an answer for. I would love to hear what you have to say about it in the comments below.

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Hi, I'm the founder of The Money Spot - I hope you have found the information on the site to be useful. I love talking about all things related to finance, business, marketing, blogging and the most important things - family and lifestyle. You can learn more about me here, or visit me on my other website Monster Piggy Bank.

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