Budget 2017

[OCP]

so.... study and work hard, then eventually give 45% of your income to a corrupt nepotistic government.

What are they going to do when the wealthy have either left or have no money left to pay taxes?

 

[Priapus]

At least 1 big positive.

Yeah, that definitely helps first time home buyers.

 

[Thor]

New income goals!

 

[Rkootknir]

All personal income tax brackets were only increased by 1% for the year - assuming CPI stays at 6.6% p.a. up to 28 Feb personal income taxes for everybody will essentially increase by 5.54% due to fiscal drag.

 

[NarrowBandFtw]

What are they going to do when the wealthy have either left or have no money left to pay taxes?

They're going to celebrate their newfound wealth, the land will finally belong to its rightful owners and they will be infinitely wealthy from just having land and not lifting a finger to do any work, viva!

 

[ToxicBunny]

All personal income tax brackets were only increased by 1% for the year - assuming CPI stays at 6.6% p.a. up to 28 Feb personal income taxes for everybody will increase by 5.54%.

Huh?

I see no mention of Income tax bracket percentages being increased.

 

[JStrike]

Also massive increase for foreign ownership. Should drop the Cape Town prices a bit, maybe.

Can you provide more detail? I didn't see anything about that

 

[JayM]

Ouch.

 

[Garson007]

Can you provide more detail? I didn't see anything about that

http://www.treasury.gov.za/documents/national budget/2017/sars/Budget 2017 Tax Guide.pdf

Second on the left of the last big block on the last page.

 

[JStrike]

Huh?

I see no mention of Income tax bracket percentages being increased.

Not the bracket percentages, the brackets themselves are only being adjusted by 1% (i.e 5% less than inflation)

 

[ToxicBunny]

Not the bracket percentages, the brackets themselves are only being adjusted by 1% (i.e 5% less than inflation)

Ahhh ok, got it..

Will only really come into play IF people get increases based on CPI then.

 

[powermzii]

Not the bracket percentages, the brackets themselves are only being adjusted by 1% (i.e 5% less than inflation)

 

[JStrike]

http://www.treasury.gov.za/documents/national budget/2017/sars/Budget 2017 Tax Guide.pdf

Second on the left of the last big block on the last page.

Thanks. Ok, not that serious "set off against the normal tax liability of the non-residents"

 

[Rkootknir]

Huh?

I see no mention of Income tax bracket percentages being increased.

For 2017 on income above R701 300 you pay 41%. For 2018 it's from 41% R708 310 (a 1% increase in the bracket) which means everybody pays more tax because the brackets weren't adjusted by at least CPI.

Presumably salaries will increase by CPI on average (usually more), i.e. all incomes are higher and more people now pay the higher rates because the brackets weren't adjusted to compensate for that effect. This is by far the easiest way for the government to effectively raise taxes as most people don't consider the effects of fiscal drag and only look at the tax rate.

 

[JStrike]

View attachment 419546

Yep

 

[JStrike]

Ahhh ok, got it..

Will only really come into play IF people get increases based on CPI then.

Yep. Given a salary increase of CPI with an adjustment of the brackets by CPI, you are effectively earning the same amount afterwards.
Since the brackets have not been increased by CPI, you will are earning 5% less after tax.

 

[ToxicBunny]

For 2017 on income above R701 300 you pay 41%. For 2018 it's from 41% R708 310 (a 1% increase in the bracket) which means everybody pays more tax because the brackets weren't adjusted by at least CPI.

Presumably salaries will increase by CPI on average (usually more), i.e. all incomes are higher and more people now pay the higher rates because the brackets weren't adjusted to compensate for that effect. This is by far the easiest way for the government to effectively raise taxes as most people don't consider the effects of fiscal drag and only look at the tax rate.

I think you will find in Private Sector the average increase is below CPI when you are into the middle tax brackets,.

 

[Garson007]

Thanks. Ok, not that serious "set off against the normal tax liability of the non-residents"

Still pretty serious, imho. 50% increase. That's going to ruin margins.

 

[rietrot]

Ahhh ok, got it..

Will only really come into play IF people get increases based on CPI then.

You should. Otherwise you are going to start moving backwards pretty fast.

 

[Garson007]

I think you will find in Private Sector the average increase is below CPI when you are into the middle tax brackets,.

I don't feel sorry for companies that lose loyal employees if they aren't giving them CPI+ increases.