How much tax do you pay?

[kissingmybbgoodbye]

http://www.iol.co.za/index.php?set_id=1&click_id=13&art_id=vn20070811082955979C621515

 

[BTTB]

How much tax do you pay?

People pay up to 65 percent in direct and indirect taxes, says a retired bank economist in a report commissioned by the trade union Solidarity.

'but only around 10 percent of taxpayers account for approximately 50 percent of taxes'

Nothing new in this article, but it does emphasise where the root of the inflationary pressures are in this country.
There has been a massive uptake in credit, agreed, but how much of this credit was simply to survive from one month to the next.
Government imho is the single biggest reason why so many people are stressing out in this country. Everyone may think Trevor is doing a sterling job, which he is to a certain extent measured against his less able peers, but has he gone flat out to help the hard working people that prop up this country? That 10%+ mentioned above that keep this country and the rest of Sub Saharan Africa afloat and stable.

I believe taxpayers are taken for granted by our Government.

 

[Syndyre]

Steven Jones, an independent tax consultant, said Solidarity was trying to score political points. "Most people's tax burden has dropped significantly in real terms in the past 13 years."

He also questioned the statement "have to pay extra for their own healthcare, education, safety, electricity, housing, pension and other services".

The state did provide healthcare and education - "whether one finds the standard thereof acceptable is, of course, one's own choice".

This guy just irritates me, the standards are not acceptable by any reasonable standard and that's a fact.

 

[Syndyre]

I believe taxpayers are taken for granted by our Government.

Totally, and unfortunately the people that emigrate are usually the ones paying a lot of the taxes too.

 

[Meisteral]

I wrote a post a while back and an extract of it focussed on the LOSS of taxes for the government. ie: when you have had over 1million emigrations in around 12 years with ½ to ¾ of these being average to high class tax payers, you could imagine the pressure it puts on the current tax payers and Trevor.

It doesn't paint a pretty picture and it brings to my surprise, why the Vat rate has not yet been increased.

 

[noxibox]

when you have had over 1million emigrations in around 12 years with ½ to ¾ of these being average to high class tax payers

Those with the most money are the biggest tax avoiders/dodgers, so maybe many of these people didn't leave much of a hole.

It doesn't paint a pretty picture and it brings to my surprise, why the Vat rate has not yet been increased.

Why would there be any need to increase VAT? The tax rates are adjusted downward each year compared to a steady increase under the Nationalist government and at the same time the tax collected each year is an improvement.

 

[noxibox]

This double taxation means that the average taxpayer spends around 65 percent of his income before he can begin to take care of his family.

Double taxation is something to which I am opposed. Every, or nearly every, country does it and it is wrong.

 

[Syndyre]

Those with the most money are the biggest tax avoiders/dodgers, so maybe many of these people didn't leave much of a hole.

Even assuming they did manage to avoid some tax they're still likely to have paid a fairly large amount.

 

[Ricard]

What tax holes

Car Allowance : Gone
Work at Home Allowance : Gone
Equipment allowance : Gone
Entertainment allowance : Gone
Medical Aid : partially deductable

Education : Not in Tax anymore
Roads : Toll Roads & and Council Tax
Medical Aid : Rather be dead than in BaraG (altho you will soon be dead if you are admitted there)

 

[noxibox]

Even assuming they did manage to avoid some tax they're still likely to have paid a fairly large amount.

Actually not. If they were smart they could manage to pay less than someone on minimum wage.

 

[noxibox]

What tax holes

Where have you been prior to 2006?

 

[noxibox]

they then have to pay extra for their own health care, education, safety, electricity, housing, pension

I always had to pay for most of these prior to 1994 anyway.

 

[Meisteral]

Those with the most money are the biggest tax avoiders/dodgers, so maybe many of these people didn't leave much of a hole.

Hopeful. But these would be the people who remain as they continue to avoid and profiteer.

Why would there be any need to increase VAT? The tax rates are adjusted downward each year compared to a steady increase under the Nationalist government and at the same time the tax collected each year is an improvement.

Your highest 'dodgers' would be for example Taxi drivers. Increasing Vat would ensure they pay their part towards a 'Better Country'. Don't get me wrong, as Vat is increased, so should Personal Income Tax be decreased.

 

[noxibox]

Car Allowance : valid travel still claimable
Work at Home Allowance : can still claim home office costs

(so-called) Entertainment allowance : heavily abused, essentially fraudulant

Medical Aid : Now fully deductible by the poorest people

Education : decent schools became expensive in 80s (of course back then everyone paid tax, but only white people had any real money put into their schools)

 

[Ricard]

Where have you been prior to 2006?

My salary had loads of "pre-tax deductions" on it over the years... now its

Gross :Rxxxxxx
PAYE : Rxxxxxx
UIF : Rxxxxxx

Thank you for sponsoring a small village in Ethiopia.

I cant claim anything back that is deemed reasonable. I earn too much to even qualify for UIF, but yet its deducted. My council rates in taxes has gone from R200 per month to R800 in 3 years. Councils charge for 'Sewage Removal' and its the same number as 'Water consumed'

The Schools in the west rand in 1985 didnt deny your exam results if fees were not paid ... (the fees were R80 per term)

 

[Syndyre]

The tax rates are adjusted downward each year compared to a steady increase under the Nationalist government and at the same time the tax collected each year is an improvement.

I always had to pay for most of these prior to 1994 anyway.

Education : decent schools became expensive in 80s (of course back then everyone paid tax, but only white people had any real money put into their schools)

Why the continual reference to Apartheid and pre/post-94? I don't see the relevance to the taxes now.

 

[Meisteral]

Double taxation is something to which I am opposed. Every, or nearly every, country does it and it is wrong.

True. In Germany the Vat is 19% (and 7% on your necessities like milk, etc). The same 65% average applies here too for the average wage, but then again your schooling is covered and your medical needs (except cosmetic surgery).

 

[Meisteral]

(so-called) Entertainment allowance : heavily abused, essentially fraudulant

Still deductible if you are mainly a commission earner.

Here is something: Why not register yourself a Cc and contract yourself to your current company (on the basis it is water tight or else they fire you). You'll have more tax deductions available to you?!

 

[lsuacner]

Norway, taxes 50%, free school, university, medical, actual police, STATE PENSION. hmmm

 

[BobbyMac]

Those with the most money are the biggest tax avoiders/dodgers, so maybe many of these people didn't leave much of a hole.

Have you got evidence of this? I own several companies and loads of property - and you don't want to know how much tax I fork out each year. My VAT alone each month is enough to pay many large salaries. In any event, SARS has taken away virtually every perk you can imagine - all that really remains is car allowance, and most people know that it's a matter of time before that's a thing of the past as well.

Why would there be any need to increase VAT? The tax rates are adjusted downward each year compared to a steady increase under the Nationalist government and at the same time the tax collected each year is an improvement.

Not quite: the last tax "break" was very cleverly orchestrated with increases in car allowance and medical aid tax contributions, meaning that many of the higher tax payers hardly benefited from any tax cut. Increasing of VAT has been on the cards of late - Trevor Manuel is probably sure to mention VAT in his mini budget, and I wouldn't be surprised to see VAT go up a percentage point in 2008.