Big VAT increase to fund SRD grants on the cards

ToxicBunny said:
The problem the government faces is that increasing VAT will get them additional funds temporarily to support the grant payout, but within a tax cycle or two the VAT receipts will decline somewhat but the grant payment will have to be increased... self-reinforcing cycle unfortunately.

If they have to increase taxes (of any kind) to fund the grant, then the grant is being counter productive and is a detriment to the economy as a whole.
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Exactly. You get stuck in this cycle. Grants go up, tax/debt/money-printing goes up causing economic damage. Grants go up/different grants get introduced to provide temporary relief again from the economic damage, tax/debt/money-printing goes up to fund it, and on and on.

Nothing is getting solved, and I’ve not seen anything from the ruling party to indicate they have any intention of addressing the underlying cause, the state of the economy. They’re actions have been outright hostile to the economy.
 
Blackhand said:
Exactly. You get stuck in this cycle. Grants go up, tax/debt/money-printing goes up causing economic damage. Grants go up/different grants get introduced to provide temporary relief again from the economic damage, tax/debt/money-printing goes up to fund it, and on and on.

Nothing is getting solved, and I’ve not seen anything from the ruling party to indicate they have any intention of addressing the underlying cause, the state of the economy. They’re actions have been outright hostile to the economy.
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they know they are in trouble with the elections, so this is there way of trying to mitigate the damage by buying loyalty.
with grants ect ect...
 
Blackhand said:
Exactly. You get stuck in this cycle. Grants go up, tax/debt/money-printing goes up causing economic damage. Grants go up/different grants get introduced to provide temporary relief again from the economic damage, tax/debt/money-printing goes up to fund it, and on and on.

Nothing is getting solved, and I’ve not seen anything from the ruling party to indicate they have any intention of addressing the underlying cause, the state of the economy. They’re actions have been outright hostile to the economy.
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They're at a loss as to how to fix it unfortunately.

Everything that needs to be done, alienates them from the proletariat and also runs 1000% counter to their marxist ideology.
 
The ripple effect will just be that more people will look abroad and less tax will be collected.
Eventually you will be completely out numbered of the money coming in and what you can spend
 
Acid0 said:
The ripple effect will just be that more people will look abroad and less tax will be collected.
Eventually you will be completely out numbered of the money coming in and what you can spend
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There still is plenty of fat on the middle class. Higher taxes bring more equality. This is what the majority want. SA is a socialist state, ruled by communists.
 
I
mypetcow said:
I’m down for 20% VAT. UK style. That way when everyone’s had enough we can maybe get some infrastructure fixed a bit. All jokes aside these R350 grants go a long way for some of our fellow South Africans. I would rather pay more vat than have them suffer or need to turn to crime to live. Nobody asked to be born and they can’t help having grown up in certain circumstances
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I say go for it, let the ANC voters suffer too. Pity we have to as well.
 
Using taxes to continue to buy votes whilst the country burns. The anc really are utter scum. Try not stealing instead you vokker5!
 
ProfA said:
There is tax on absolutely everything else required to get it to the shelves. ;)

There is no such thing as "tax free"
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Yes but so what? If you increase taxes enough then this will be covered for maize meal. Can even give a maize meal grant each month.
 
Insint said:
I do not support the R350 grant scheme at all.
People will use it for alcohol, drugs and cigarettes.

People would rather be hungry and smoke cigarettes or drink alcohol.

There are people that would use it for food but rather open Food houses or something rather than giving away money.
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I've spent my last pocket money I have left on a bottle of Witzenberg back in the day, don't judge.

LOL
 
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