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Thread: Expect drastic decision in budget speech on funding free education – Gigaba

  1. #31

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    Quote Originally Posted by JayM View Post
    The devil is in the detail. Large scale disputes over valuations will make the whole thing more expensive to maintain that what they'll get out of it. Capital flight and emigrations will hit astronomical levels. A 60 year old with a paid off house and low cash flow will have to sell his house just to pay the wealth tax. Valuing businesses is extremely difficult - how will business owners be taxed on this? Say my business is worth 20 bar, but I make a loss one year and can't afford to pay the wealth tax - do I just close it down?

    First world governments with good tax collection departments have struggled with this for decades - there is no way SA can implement it in a profitable and equitable manner.
    Make the tax payable before the dispute can be accepted.

    France has had a wealth tax since 1981 I think and no issue collecting it.

    It's really not rocket science. Which countries are struggling with it?

    I never said it's a good or smart idea for the country, nor that it won't hit people who have capital but no revenues.

    Merely answering to the assumption that it was not feasible.

    SARS is actually recognized as a very efficient collection agency worldwide (not sure with Monyane anymore).

  2. #32

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    Quote Originally Posted by Hamster View Post
    Wealth tax
    Increase in dividend tax
    Increase in CGT
    VAT remains at 14%

    EDIT: fixed CHAT....wtf is CHAT
    . Not much more they can really do on the wealth tax. Even the rich are at breaking point when it comes to tax. And those are the people you need in the country to pay tax. They can and will up and leave if pushed much further.

    . Dividend tax sure, but it won't cover the short fall

    . Another possibility but the affect it would have could lead to less informal trading affecting the economy.

    . Vat is the only other option they have left really.
    I have signed up with Bitco and it's by far the best internet I have ever had. Get a quote

  3. #33

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    Quote Originally Posted by Tander View Post
    /shurg - I figured it was something since you had it in uppercase and everything.

    Wealth Tax == taking higher in PAYE IMHO.
    Supposed to be CGT, but autocorrect had other ideas.
    Screw this...

  4. #34

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    Quote Originally Posted by Pitbull View Post
    . Not much more they can really do on the wealth tax. Even the rich are at breaking point when it comes to tax. And those are the people you need in the country to pay tax. They can and will up and leave if pushed much further.

    . Dividend tax sure, but it won't cover the short fall

    . Another possibility but the affect it would have could lead to less informal trading affecting the economy.

    . Vat is the only other option they have left really.
    VAT is the logical option if one was to put the country first, agreed.
    Screw this...

  5. #35
    Super Grandmaster blunomore's Avatar
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    Quote Originally Posted by Adrianax View Post
    It was promises made to them. Everyone will get free grants. Everyone will get free houses. Everyone will get free electricity. Everyone will get free water. Everyone will get free basic services. Everyone will get free medical treatment, and now, everyone will get free education. They're just living up to the expectations created back in 1994. No one ever thought anything through. It was all a spin, right from the onset, to get and keep voters.
    Those are wonderful ideals. The issue is the way it is implemented. These are all tainted by either massive corruption (e.g. free houses - many developers of RDP houses did sloppy jobs, but got away with being paid millions of Rand and never returned to fix their shoddy work) or a pillage and subsequent damage to the SOE involved with it, like ESKOM. When their is a project, there are vultures moving in, hoping to benefit financially from it, as opposed to render a proper service to the citizens.
    Quote Originally Posted by jingaling View Post
    Blu, you're a genius.

  6. #36

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    Quote Originally Posted by f2wohf View Post
    Make the tax payable before the dispute can be accepted.

    France has had a wealth tax since 1981 I think and no issue collecting it.

    It's really not rocket science. Which countries are struggling with it?

    I never said it's a good or smart idea for the country, nor that it won't hit people who have capital but no revenues.

    Merely answering to the assumption that it was not feasible.

    SARS is actually recognized as a very efficient collection agency worldwide (not sure with Monyane anymore).
    Yes, SARS is efficient at extracting cash from the middle class. The wealthy will side-step a wealth tax with ease.

    France has all but scrapped their wealth tax due to complexity and inefficiency - see Macron's most recent changes for more evidence that it's a bad idea all round.

    Bottom line: it simply does not collect a lot of revenue for the effort and is damaging to an economy in the medium to long term - that in itself makes it not feasible in SA.

  7. #37
    SmoothOokerMaximus The_Librarian's Avatar
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    stick head into sand and hope for the best?




    500th anniversary of the Protestant Reformation has passed.

  8. #38
    Super Grandmaster xrapidx's Avatar
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    Quote Originally Posted by Messugga View Post
    Graduates become middle class eventually.
    Wait till they find out they have to work after free education.

  9. #39
    Super Grandmaster xrapidx's Avatar
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    I'm sitting here trying to figure out how to get my RA out of the country if I move.... think its time to reduce it and put money elsewhere.

  10. #40

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    Quote Originally Posted by xrapidx View Post
    Wait till they find out they have to work after free education.
    Wait till they realise they still have to pass. They should make 2nd and 3rd year "free". Pay first year, pay for fourth year and onwards.
    Screw this...

  11. #41

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    Quote Originally Posted by JayM View Post
    Yes, SARS is efficient at extracting cash from the middle class. The wealthy will side-step a wealth tax with ease.

    France has all but scrapped their wealth tax due to complexity and inefficiency - see Macron's most recent changes for more evidence that it's a bad idea all round.

    Bottom line: it simply does not collect a lot of revenue for the effort and is damaging to an economy in the medium to long term - that in itself makes it not feasible in SA.
    Really? Has he scrapped it?

    It was replaced by the IFI, tax on the real estate wealth.

    Thanks for lecturing me on my country...

    https://en.wikipedia.org/wiki/Solidarity_tax_on_wealth
    They call me Mr. Know-it-All

  12. #42

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    Complexities with wealth tax? What's complicated about adding another bracket at R1,500,000.00 and taxing everything above that at 45%?
    Screw this...

  13. #43
    Super Grandmaster xrapidx's Avatar
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    Quote Originally Posted by Hamster View Post
    Complexities with wealth tax? What's complicated about adding another bracket at R1,500,000.00 and taxing everything above that at 45%?
    They already do that?

  14. #44

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    Quote Originally Posted by f2wohf View Post
    Really? Has he scrapped it?

    It was replaced by the IFI, tax on the real estate wealth.

    Thanks for lecturing me on my country...

    https://en.wikipedia.org/wiki/Solidarity_tax_on_wealth
    According to this, they've dropped revenue from it to only 1.5bn a year (from 5bn): https://www.ft.com/content/3d907582-...b-4a9c83ffa852. The figures in the article are a prime reason why this kind of tax is a bad idea.

    Why are they throwing away 3bn revenue if it's so easy and efficient to collect?

  15. #45

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    Quote Originally Posted by Hamster View Post
    Complexities with wealth tax? What's complicated about adding another bracket at R1,500,000.00 and taxing everything above that at 45%?
    That's income tax, and they already do it.

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