Wealth gap widens, ANC dodges wealth tax

That old saying “the rich get richer and the poor get poorer” is true of the world over the past two decades, as the gulf between the wealthiest and those at the bottom of the financial pyramid grows by the hour, never mind day.

When you have the vast majority of the wealth on planet earth in the hands of such a tiny minority of mega-billionaires – and when you note that children die of hunger while they sun themselves on their ocean-goings and flit from mansion to mansion in private jets – you wonder about two things.

First, why does an individual, even one with an extended family or army of concubines, need such obscene amounts of money? And, second, how can that wealth be spread more evenly?

One of the answers to this virulent form of capitalism was conjured up by Karl Marx and Friedrich Engels… but so far their socialism or communism hasn’t worked.

However, even in many capitalist countries, there are taxes on wealth – money which, theoretically, can be used to raise up all citizens.

ALSO READ: Minister of finance says no to wealth tax

It’s interesting, therefore, to see that the ANC has seemingly come down on the side of the fat cats by not pursuing the idea of a wealth tax – at least according to what Finance Minister Enoch Godongwana has said.

His arguments are that such a levy might persuade the wealthy to leave the country for more amenable tax climes and that, in any event, taxes on property, estate duty, securities transfers and donations already exist – and they bring in R22 billion a year. That’s not counting property taxes levied by municipalities.

That level is in line with global best practice, says Godongwana.

So, if you’ve ruled out a wealth tax, perhaps you should seriously start cutting government spending to balance your books, minister.