South Africans who are apparently wealthy are not so in reality because they are some of the highest taxed people on the planet.
There you have it: Minister of Finance Enoch Godongwana has said categorically there will not be a wealth tax to increase government revenue and help the state balance its books.
And the reason the government – read the majority part of it, the ANC – has abandoned this juicy populist promise?
Not because it has suddenly become more free market-orientated but because, simply, you cannot get blood out of a stone.
Godongwana revealed that, as it is, taxpayers earning above R750 000 annually pay more than 60% of all personal income tax, despite the fact they make up only 12% of the tax base.
ALSO READ: Relax, there will be no wealth tax – top 12% already pay 60% of personal tax
But, that’s not all, folks. Once you factor in the myriad other ways in which salary earners and business owners are scalped by the SA Revenue Service – through estate duty, transfer duty, donations tax and securities transfer tax, never mind the “ordinary” tithes like VAT and the fuel levy – South Africans who are apparently wealthy are not so in reality because they are some of the highest taxed people on the planet.
Pushing those burdens even higher would trigger the “golden goose” syndrome.
Once you start slaughtering those precious birds, where are you going to find the golden eggs?
