3 million people shoulder almost all of SA’s tax burden

3WA

Executive Member
Joined
Sep 25, 2012
Messages
7,074
I reran the numbers.

Source of numbers: http://www.treasury.gov.za/documents/national budget/2019/review/KeyBudgetStatistics.pdf

Government spend is R1.8266 trillion, of which R910.2 billion comes from income tax and VAT (i.e. ignoring corporate tax and debt). That is 49.8%, so for every rand government spends, you're only contributing 49.8 cents.

The child grant makes up 3.6% of the budget, so for every R11,944.44 that government spends, one child grant gets paid. But you only contributed to 49.8% of that R11,944.44, so for every R23,970.24 you pay in VAT and income tax, one grant gets paid.
 

garp

Executive Member
Joined
Aug 2, 2004
Messages
7,629
I believe everyone will be affected i;f the thugs in government decide to raid pensions.
That is pretty much what I said. I merely pointed out that in addition a portion of that 3m has been singled out as the target of vitriol from certain political sectors, which only makes the problem worse.

Maybe it's just me, but when so many people rely on so few, the pragmatic approach would be to treat them with kid gloves and not hostility.

It's funny how so much is said about our severe income inequality, but we also have a corresponding severe taxation inequality and yet it seems that politicians think increasing the taxation inequality is the solution to decreasing the income inequality. It's not sustainable. What would be sustainable, is to focus on ways of increasing the tax paying pool, instead of on ways to milk it even further. And that means giving the existing pool of tax payers support and enough confidence in the future to expand their pool, not the other way around.
 

PhireSide

Executive Member
Joined
Dec 31, 2006
Messages
9,338
That is pretty much what I said. I merely pointed out that in addition a portion of that 3m has been singled out as the target of vitriol from certain political sectors, which only makes the problem worse.

Maybe it's just me, but when so many people rely on so few, the pragmatic approach would be to treat them with kid gloves and not hostility.

It's funny how so much is said about our severe income inequality, but we also have a corresponding severe taxation inequality and yet it seems that politicians think increasing the taxation inequality is the solution to decreasing the income inequality. It's not sustainable. What would be sustainable, is to focus on ways of increasing the tax paying pool, instead of on ways to milk it even further. And that means giving the existing pool of tax payers support and enough confidence in the future to expand their pool, not the other way around.
Don't come here with your logic and reasoning! /s
 

RedViking

Nord of the South
Joined
Feb 23, 2012
Messages
22,729
I reran the numbers.

Source of numbers: http://www.treasury.gov.za/documents/national budget/2019/review/KeyBudgetStatistics.pdf

Government spend is R1.8266 trillion, of which R910.2 billion comes from income tax and VAT (i.e. ignoring corporate tax and debt). That is 49.8%, so for every rand government spends, you're only contributing 49.8 cents.

The child grant makes up 3.6% of the budget, so for every R11,944.44 that government spends, one child grant gets paid. But you only contributed to 49.8% of that R11,944.44, so for every R23,970.24 you pay in VAT and income tax, one grant gets paid.
@Grant must be rich.
 

Polymathic

Honorary Master
Joined
Mar 22, 2010
Messages
14,828
It's basically gone to the point where they are better off having a progressive 5 to 25% VAT rate and doing away with income tax all together
 

flippakitten

Expert Member
Joined
Aug 5, 2015
Messages
1,452
Step 1: ANC stop looting.
Step 2: Reduce PIT.
Step 3: Give up EWC and NHI.

Step 4: Watch economy magically bounce back a bit.

It's honestly not witch craft or science fiction, we know it will work.
 

ponder

Honorary Master
Joined
Jan 22, 2005
Messages
78,481
My question is based on the highlighted bit on his post. Nothing sinister.

I believe everyone will be affected i;f the thugs in government decide to raid pensions.
And that's what he said, all 3m will be affected but the gov will lay blame on a portion of that 3m.
 

rambo919

Executive Member
Joined
Jul 30, 2008
Messages
5,917
It's basically gone to the point where they are better off having a progressive 5 to 25% VAT rate and doing away with income tax all together
Problem is that will only really benefit the rich and upper middle class.
 

Jabulani22

Expert Member
Joined
Feb 11, 2017
Messages
1,645
I thought this 3-10% paying for the rest was some sort of colonist lie ?
Im sure i have seen people on mybb say similair and poke fun at those who said this is whats happening.
 

Stephen

Expert Member
Joined
Nov 7, 2006
Messages
1,386
I thought this 3-10% paying for the rest was some sort of colonist lie ?
Im sure i have seen people on mybb say similair and poke fun at those who said this is whats happening.
Its MyBB, you swear by the 'kerels' on here, that when you walk outside anywhere and you will encounter this:

 

Johnatan56

Honorary Master
Joined
Aug 23, 2013
Messages
25,935
I reran the numbers.

Source of numbers: http://www.treasury.gov.za/documents/national budget/2019/review/KeyBudgetStatistics.pdf

Government spend is R1.8266 trillion, of which R910.2 billion comes from income tax and VAT (i.e. ignoring corporate tax and debt). That is 49.8%, so for every rand government spends, you're only contributing 49.8 cents.

The child grant makes up 3.6% of the budget, so for every R11,944.44 that government spends, one child grant gets paid. But you only contributed to 49.8% of that R11,944.44, so for every R23,970.24 you pay in VAT and income tax, one grant gets paid.
That's yearly I assume?
 

krycor

Honorary Master
Joined
Aug 4, 2005
Messages
15,695
Why do I get the impression that our Government is gearing up to increase VAT again?

The coffers are empty and trying to milk the taxpayers even further have failed, thus Plan B is on the cards....
At 15% SA is still cheap vs others.. normal is 18-24% in most places.

If they wanna raise VAT, this is the year to do it. PIT can’t be adjusted much short of adding in new top tiers and even then the net gain is not worth it.
 

Vrotappel

Bulls fan
Joined
Feb 22, 2005
Messages
17,668
I dunno maybe its like the same people on News and Current Affairs who laugh and have a smart ass comment when people get retrenched
Actually for this country to turn around a lot more needs to get retrenched. Obviously we need to trim the fat from government and SOEs.
 
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