Bachelor tax against aging society

When economist Terdsak Chomtohsuwan proposed that single people should pay more tax, the world was too small. Terdsak was mocked on social media. Ridiculous and absurd were the least unkind reactions.

But Terdsak was deadly serious at a seminar earlier this month. Because Thailand is aging. At present, 14,8 percent of the population is older than 60, which makes the country an 'aged society' in demographic terms. When that percentage rises above 20 percent, Thailand can call itself a 'complete aged society' and that state is expected in 2021.

The "bachelor tax," as it's called in the walk, could be a way to "subsidize the seniors and ease the burden of people with kids," says Terdsak. 'Because the country is heading for a shortage of labor due to the aging population and a decline in the birth rate. That can lead to a stagnant economy and higher health care expenditure.'

Increasing taxes is not sacred for Terdsak, there are also other options

Incidentally, the tax idea was one of five proposals Terdsak made at the seminar, but the other four received little attention. So increasing the tax is not sacrosanct as far as he is concerned. It is, however, a means for the government to absorb possible future structural deficits in the budget. "At the same time, it makes fertile people aware that the birth rate is falling and encourages them to start a family."

Terdsak explains that not all single people have to pay the tax. The target group are unmarried men and women with an above-average income. And the system could exempt certain people from the tax. The funny thing is that Thailand already had such a tax once, namely in 1944. But after a year it was scrapped.

Health care costs are not increasing, geriatrician says

Whether the costs of healthcare will increase in the future is contested by geriatrician Sirintorn Chansirikarnjana. In the 50s life expectancy was about 74 years, now it is XNUMX years. According to Sirintorn, this longer life expectancy does not necessarily lead to higher spending.

'As long as seniors are in good health and are not physically or mentally handicapped, they are not a burden. The biological age does not always correspond to the calendar age. A woman of 70 can be 60 years old. People should live healthy. That's something we can all do.”

Sirintorn points out that palliative care and hospice care make up only a small portion of total health care spending. The care that can be provided in a hospice and at home requires less expenditure in the case of a chronic illness than hospitalization. Another way to reduce costs is to set up a network of volunteer aid workers. Young people can be encouraged to take care of their older relatives, friends or neighbours.

Sirintorn: 'It's a matter of give and take. Today's responders are tomorrow's recipients. That system would be ideal in our social context.'

(Source: Bangkok Post, Sept. 17, 2013)

Postscript: I asked Tino Kuis, retired GP and GP trainer in Chiang Mai, to respond to the geriatrician. This is what he wrote:

I think the geriatrician is right that an aging society is not necessarily increase healthcare costs need provided you ensure that all people grow old in a healthier way than before. That will certainly happen to some extent, but not so much that health care costs will remain the same. That seems like a utopia to me.

In addition, increasing prosperity will mean greater demands on health care. What will also certainly increase is welfare care, care for the elderly, especially with the current changes in Thai society. I think all these costs will increase quite a bit in the coming years. Taxes and premiums will have to go up, that's for sure, how's a second.