supersunbird
Honorary Master
No, they take 33% (think it might be 40% now, I am unsure) of you profit made on the sale of an asset, then tax that 33% at your tax bracket rate. So its effectively 16% tax at most.
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Budget 2016 - Discussion thread
- Thread starter OrbitalDawn
- Start date
No, they take 33% (think it might be 40% now, I am unsure) of you profit made on the sale of an asset, then tax that 33% at your tax bracket rate. So its effectively 16% tax at most.
reactor_sa
Executive Member
This year we got off easy, next year until 2019 we ****ed up the royal rings, us tax payers anyway.
Sideshow Bob
Honorary Master
You seem extremely unhappy with personal income tax relief of R5.5 billion focused mainly on lower and middle-income earners. ??
Diesal
Expert Member
Yes, the 33% of the gain made on the sale of the asset is then added to you taxable income, after which is taxed at the normal tax table rate.
Does that 16% include the 30k annual exclusion?
Edit I need a refresher course on all of this lol
itareanlnotani
Executive Member
Inflation is going to put paid to any tax relief on lower and middle income earners. We're realistically closer to a 25% inflation rate, vs the governments actual rates. Any concessions are meaningless with that in mind.
Quite a disappointing budget. Gordhan basically didn’t rock the boat. Talked about government spending cuts, then Zuma announces 8% increase in salaries for the useless Kings / Queens and other Vote suppliers for the coming year in the next breath. Thats totally fiscally prudent. Not.
He also didn’t say dick about SOE’s, only hand wavy **** about SAA and possibly doing stuff
Totally a voter friendly budget. increased social grants. penalised the actual tax paying public.
Taxpayers are meaningless vote wise, so **** them is the essential gist of this.
This budget is aimed squarely at the "vota" public. Not the taxpayer. Don't conflate the two.
The consensus was that this would be a "desperate times call for desperate measures" budget, and the absence of the desperate measures in the budget is a outright denial by government that desperate times are ahead.
(snarfed from another thread, but a good summation also)
The good news though is that we’ll be going to junk status, and won’t be able to do nuclear.
So a mild silver lining.
Although given zupta’s complete disregard for anything but himself, that may go through anyway, **** the taxpayer.
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Jola
Honorary Master
Yes, it's an election budget, and fusck the economy and country.
We will be downgraded to junk, and the next few budgets will be horrendous.
Very opportunist.
The FX market seems to agree with what I am saying.
itareanlnotani
Executive Member
...and those who can't see it are blind to whats happening.
The obvious result is going to be further capital flight, and a weaker rand.
The market had hopes for this budget, and Gordhan has completely screwed the opportunity pooch on this.
Tomorrow will see the real drop.
reactor_sa
Executive Member
After loadshedding hits in winter, along with the annual strike's, we will hit junk status.
Next year being another election year, the top two brackets will be getting additional PIT, and probably a wealth tax too for the high nett worths....
Next year being another election year, the top two brackets will be getting additional PIT, and probably a wealth tax too for the high nett worths....
supersunbird
Honorary Master
The annual exclusion can make it 0%.
I'm saying the highest effective rate will be around 16%, it can be anywhere between 0 and around 16%, based on the amount of capital gains and personal tax bracket.
konfab
Honorary Master
Load shedding is not going to happen, our economy has shrunk enough for Eksdom to cope.
He sugar coated it so much that if the sugar tax was in effect, he could have single handedly funded government for the next 4 years.
Jola
Honorary Master
supersunbird
Honorary Master
http://www.moneyweb.co.za/in-depth/budget/capital-gains-tax-hiked/
Seems I was right about the new exclusion rate, but luckily the exemption amount also went up.
Seems I was right about the new exclusion rate, but luckily the exemption amount also went up.
Mike Hoxbig
Honorary Master
What a major disappointment this turned out to be. A lot of hot air that sounds good but doesn't mean jack. We will cut government expenditure, but no defined plan on how...
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F
Former member 61586
Guest
Wonder where all those are who thought Gordhan was any better than any of the rest?
McSack
Executive Member
.... and in other news Zuma announces salary increases for political office bearers, kings and queens.
Seriously ... this lot does not know their @rses from their elbows. There is no defined plan because it would just be ignored anyway. We are fsked I'm afraid
OrbitalDawn
Ulysses Everett McGill
He is better than the rest. Doesn't mean he has the political leeway to do what he wants or needs to do.
If he was as useless as some of the other ministers things would be way worse.
R13...
Honorary Master
People seem to have trouble understanding that all politicians belong to a political party and by extension everything they do will reflect the wishes of that party's collective. They implement the party's policy positions but ability to let the party know the realities of the world and markets when you're finance minister is important. Pravin has that ability unlike some of the others who simply rubber stamp #1's wishes.
Trevor Manuel used to remind us that he serves at the pleasure of the president and you could tell he's ANC through and through when he was discussing politics.
OrbitalDawn
Ulysses Everett McGill
Yep. Gordhan also has a certain level of credibility and stature within the party so Zuma can't just play ventriloquist with him like some of the others.
Saw a tweet from someone who was watching saying Gordhan shook Ramaphosa's hand after the speech but not Zumas... Haven't seen/read/heard anything more about it, though.
I saw a picture in the paper this morning of him shaking his hand with Zuma, so unfortunartly that doesn't seem true.