South Africa’s big economic lie

This is why we need to tax people who are broke on paper. They must be getting money to exist from somewhere. Blanket R10k/year tax for them.
 
Daily Investor said:
South Africa’s big economic lie

Entrepreneur and township economy expert GG Alcock says South Africa’s economy is much healthier than what people are told.
Click to expand...

I read Alcock's books years ago. They were enlightening but they also pissed me off. In his one book he talked about this Mozambican guy who was selling vegetables at a taxi rank. He was taking home 30k a month.

Alcock asked him if he paid taxes and the oke just laughed.

There are many similar stories about locals in the townships also operating below the radar but taking home big bucks. All of these people deal in cash.

It's a ****ing joke. If these people are happy to dodge taxes I wouldn't be surprised if they were also paying off guys to hook them up with free electricity and ****.

Alcock tries to paint it as a positive thing but na, it's actually a ****ing crisis. Legal tax paying individuals and businesses are carrying these free loaders on our backs.

If I was in charge I'd be making moves on getting rid of cash and making everything digital.
 
zolly said:
I read Alcock's books years ago. They were enlightening but they also pissed me off. In his one book he talked about this Mozambican guy who was selling vegetables at a taxi rank. He was taking home 30k a month.

Alcock asked him if he paid taxes and the oke just laughed.

There are many similar stories about locals in the townships also operating below the radar but taking home big bucks. All of these people deal in cash.

It's a ****ing joke. If these people are happy to dodge taxes I wouldn't be surprised if they were also paying off guys to hook them up with free electricity and ****.

Alcock tries to paint it as a positive thing but na, it's actually a ****ing crisis. Legal tax paying individuals and businesses are carrying these free loaders on our backs.

If I was in charge I'd be making moves on getting rid of cash and making everything digital.
Click to expand...
But what would we do with all these shiny new Madiba's that were just introduced?
 
If the informal economy was taxed like the formal economy I can guarantee that many people would stop voting ANC. That is why a significant portion of black middle class in the metros are now voting for opposition parties. When you touch someone's pocket then critical thinking kicks in and trumps ideology and blind loyalty.

It's in the ANC's best interest to keep the informal economy off of SARS' radar.
 
3WA said:
This is why we need to tax people who are broke on paper. They must be getting money to exist from somewhere. Blanket R10k/year tax for them.
Click to expand...
Sounds socialist. I like, let’s do this.
 
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Reactions: 3WA
In every country there is the rich and the poor.

Ever been to Singapore or Korea? Korea especially. Even the middle class are seen as poor, unless you have VVIP access to the mall, the hospital etc.

Money rules the world.
 
zolly said:
In his one book he talked about this Mozambican guy who was selling vegetables at a taxi rank. He was taking home 30k a month. Alcock asked him if he paid taxes and the oke just laughed. There are many similar stories about locals in the townships also operating below the radar but taking home big bucks. All of these people deal in cash.
Click to expand...
The moment i saw this article i knew the goalpost is gonna move to income tax.

That bloke, assuming the R30K is nett profit, pays more tax then most on here...
A non-vat registered seller moving R200K worth of vegetables a month, IS PAYING MORE TAX then the same guy that's formal, vat-registered, and taking R7000 salary...all 100% legal.

  • The non-vat guy pays 15% vat himself and can't claim it back, which is a whopping R26 086...a month.
  • The formal vat registered guy CLAIMS BACK the vat, pays only the difference between input/output...which he collects from his customers. His company pays him R7000 a month, on which he LEGALLY don't pay no taxes. He enjoys the rest of his 30k salary from within his company as operational expenses...all legal. This is the guy mybb tax experts prefer
The average mybb tax sandbox shouter do not understand tax. While you are outrage about his lack of income tax, he's paying a lot of vat, and you not understanding that tax is tax, can't comprehend that. He, in his current state as informal vendor is much more worth to the tax base then when he gets educated and goes formal.

Beware what you wish for...

zolly said:
Alcock tries to paint it as a positive thing but na, it's actually a ****ing crisis. Legal tax paying individuals and businesses are carrying these free loaders on our backs.
Click to expand...
Carry them how? Substantiate your claim. A legal tax paying individual can't even come close to the amount of vat an informal seller pays, even with their fancy pansy expensive purchases. Business collects VAT paid by their customers...you know, like the informal seller.
 
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Paul_S said:
If the informal economy was taxed like the formal economy I can guarantee that many people would stop voting ANC.
Click to expand...
They are taxed the same. Maybe ease up with those guarantees.
Paul_S said:
That is why a significant portion of black middle class in the metros are now voting for opposition parties.
Click to expand...
Why? Did the opposition parties promised them NO TAXES?
Paul_S said:
When you touch someone's pocket then critical thinking kicks in and trumps ideology and blind loyalty.
Click to expand...
Funny,,,de Ruyter touched many pockets but still enjoyed blind loyalty
Paul_S said:
It's in the ANC's best interest to keep the informal economy off of SARS' radar.
Click to expand...
The lazy argument. Today the Anc keeping something away from SARS, tomorrow the ANC controlled SARS is doing god knows what to the perpexual victim group.
 
Paul_S said:
If the informal economy was taxed like the formal economy I can guarantee that many people would stop voting ANC. That is why a significant portion of black middle class in the metros are now voting for opposition parties. When you touch someone's pocket then critical thinking kicks in and trumps ideology and blind loyalty.

It's in the ANC's best interest to keep the informal economy off of SARS' radar.
Click to expand...
They also won't be able to exist if they were taxed like the rest.

There is a fish and chips place down the road from our office, that only accepts cash. I doubt their business would be viable if they had to pay their full share of VAT.

Its proof of what could be possible of we did not have incredibly high tax rates and instead had a small government and minimal red tape.

Also worth noting that this informal economy was largely founded on seed money coming from social grants and informal lending, not lending money from the formal sector.
 
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Lots of assumptions. From big bags of pap to fancy cars, credit is driving us deeper into a recession..
 
zolly said:
I read Alcock's books years ago. They were enlightening but they also pissed me off. In his one book he talked about this Mozambican guy who was selling vegetables at a taxi rank. He was taking home 30k a month.

Alcock asked him if he paid taxes and the oke just laughed.

There are many similar stories about locals in the townships also operating below the radar but taking home big bucks. All of these people deal in cash.

It's a ****ing joke. If these people are happy to dodge taxes I wouldn't be surprised if they were also paying off guys to hook them up with free electricity and ****.

Alcock tries to paint it as a positive thing but na, it's actually a ****ing crisis. Legal tax paying individuals and businesses are carrying these free loaders on our backs.

If I was in charge I'd be making moves on getting rid of cash and making everything digital.
Click to expand...
A guy selling vegetables in a taxi rank is pissing you off
 
The term WMC, as constantly repeated by a certain buffoon, springs to mind also......
 
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