Thursday, July 7, 2011

State may lose millions on new law on artificial insemination

A new law that makes people to pay fees for artificial insemination could eventually have cost the government more than it actually would save by not having introduce the law.

Surprise? Not really.

The new law was introduced from the 1st of January 2011 where one is facing fees for artificial insemination in public sector. Up to that day Danish tax-payers could get 3 treatments at states expense.
Now own payment means that a childless couple must calculate with having to take out of their pocket between 15,000 and 30,000 kroner for the treatments. And it has caused many to stay away from clinics.

It is so weird to hear that Danish population is getting older, there are not enough young people who would be able to support the economy in about 25 years. And so what does the government do? Yes, it comes up with a brilliant idea of asking for fees for artificial insemination. How clever is that?

Right now all you can read in the newspaper a shocking discovery on the facility conference in Stockholm. One of the highlights are that fewer people will seek fertility treatment, because they themselves must pay. That means fewer births and thus fewer people who can contribute to the economy with their taxes.

Am I chocked? Not really. Why does the government thinks in a short run, not in the long run. Yes, they will save the money now, but who will pay the bill later, when in comes in the form on lost tax revenues?

The two scientists wrote in their report that a decrease in the number of treatments of 30-50 percent as a result of the new standards for user fees in Denmark means that the state in 2034 will have saved between 500 and 830 million kroner.

However in 2059, then 25 years later, the state will in turn have lost between 555 and 920 million kroner. A loss due to less tax because there will be fewer children born to pay taxes.

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