The ANC has revived its wealth tax proposal

[mylesillidge]

ANC proposes wealth tax to fund universal basic income grant

The African National Congress (ANC) is bringing its proposal for an additional tax on South Africa's wealthier taxpayers to help fund the basic income grant (BIG) back to life, Sunday Times reported.

"BIG can be regarded as a mechanism to promote equity and thus a wealth tax can be a mechanism through which revenues can be raised to fund a BIG," its proposal read.

 

[Herr der Verboten]

Agreed. We got to tax those whites vf+ voters who keeps on taking all the jobs and all the money! Amandla! Awethu!

 

[op365]

Nothing quite like having 45% of your salary taken away to fund corruption as it is... Real motivating factor to keep working hard and asking for an increase...
Let's take from the haves and give it to the have nots...

 

[RVQ]

Until they realise that the Wealth Tax targets largely ANC politicians and connected friends/ family that have stolen themselves into the top 5%, with the people they intended on taxing having left SA already

 

[deweyzeph]

Allan Gray tax manager Komil Gordhan said that SARS required assets to be declared at market value. This suggests the revenue service is trying to gauge how the value of these assets has changed and determine from where opportunities for tax revenue can come.

This is not true. Anyone who has had to fill in a "Statement of Assets and Liabilities" in their tax return can tell you that SARS requires you to declare your assets at COST, not market value.

 

[swift412]

It's always easy to waste spend money when it is someone else's money you're spending.

 

[Danie_V]

A large part of the issue though is also education and job creation.... Wealth taxes will still keep people at the bottom trapped in poverty if education and job creation is not sorted out. Lots more job types are due to disappear in the coming decade, and without addressing education and job creation, those people will struggle to adapt. Problem is that education and job creation has supposedly long been focus areas. So what happened? Jobs seemed to have been lost (?) and is the education situation truly improved (lowering a pass rate does not count, as it actually creates an even worse effect).

 

[whatwhat]

Until they realise that the Wealth Tax targets largely ANC politicians and connected friends/ family that have stolen themselves into the top 5%, with the people they intended on taxing having left SA already

These rules do not apply to them.

 

[borro]

There is a circus in town today?

 

[Cranjus McBasketball]

What a great idea. To fund the sick, lame & lazy, tax those who can actually afford to leave. Who needs a tax base anyway.

 

[Cranjus McBasketball]

Until they realise that the Wealth Tax targets largely ANC politicians and connected friends/ family that have stolen themselves into the top 5%, with the people they intended on taxing having left SA already

Yea gonna be interesting to see them explain that one.
"We're taxing the affluent."
"But you're the affluent?"
"Yes. But. No. Well you see..."

 

[rvZA]

South Africans are going to be surprised when the government introduces this and find out that 98% of those who will have to pay it will be black people. But then again, what is fair is fair. If they need tax money to fund it, take it from the people earning an income.

 

[BuckRogers]

 

[deweyzeph]

Wealth taxes are notoriously difficult to enforce. SARS simply doesn't have the resources to effectively police and enforce a wealth tax.

 

[rvZA]

Wealth taxes are notoriously difficult to enforce. SARS simply doesn't have the resources to effectively police and enforce a wealth tax.

True. The best option for the ANC would be to raise VAT to 17 / 18 or 19%. This is the only way they will get the money, but then again, not even sure if this may be sufficient to cover such grant.

 

[waynehooper]

I have a better solution, how about a 5% tender tax. Fairly sure few of the tenderpreneurs pay tax.

 

[Sensorei]

These rules do not apply to them.

Previously disadvantaged tax exemption of course.

 

[CB40]

South Africans are going to be surprised when the government introduces this and find out that 98% of those who will have to pay it will be ANC Politicians But then again, what is fair is fair. If they need tax money to fund it, take it from the people earning an income.

FTFY

 

[deweyzeph]

FTFY

Wealth taxes are not a tax on income. They are a tax on the appreciation of assets bought with money that has already been taxed. In effect they are a form of capital gains tax, except they are a capital gains tax on assets that have not even been liquidated.

 

[itareanlnotani]

Richer people - well, screw that, we're emigrating.

Laffer curve yadda yadda.