Tax increase is pittance for some

27 February 2015 - 02:34 By The Times Readers
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NENE MOMENT: Finance Minister Nhlanhla Nene arriving at parliament yesterday to deliver his first Budget speech. From April 1 many middle- and higher-income earners will take home slimmer pay packets - he has increased personal income tax for the first time since the 1990s
NENE MOMENT: Finance Minister Nhlanhla Nene arriving at parliament yesterday to deliver his first Budget speech. From April 1 many middle- and higher-income earners will take home slimmer pay packets - he has increased personal income tax for the first time since the 1990s
Image: HALDEN KROG

Why does Karen Botha, a senior tax manager at PricewaterhouseCoopers, ("Taxed to death" yesterday), find it "incredible" that the top 11% of taxpayers pay 61% of all income tax? That is the nature of a progressive tax system, and would be the case in just about any developed economy.

If you earn R1-million a year, you'll be paying R380 a month more tax after Wednesday's increase. That's not going to kill anyone, as the headline suggests.

Our top marginal rate of 41% is still way below the 45% we had back in 1995, and also lower than marginal rates in France, the UK or Brazil, to name a few.

Before Wednesday we had not had an income tax increase for two decades. And no, poor people don't "get to take more home on a monthly basis" after this tax increase.

What does Botha mean when she says she's not sure how much longer the 11% will "tolerate" this? That they should stop paying tax? Move overseas? Maybe to Australia, where the marginal rate is 47%?

Robert Brand, Claremont

Last month you published an article stating that we have lost R700-billion over the last 20 years due to corruption. Jacob Zuma and his unqualified comrades at the trough can hide behind as much legal and political rhetoric as they want - we all know the government is fleecing us.

Now, they want more. How much more blood can they squeeze from the middle-class stone? If they offered loyal, honest taxpayers one iota of value for our hard-earned tax rands, we would probably all happily contribute. Instead, we are scared of our police, our education is an embarrassment and our hospitals are a disgrace.

If Zuma showed any form of leadership we would all give willingly. It would not be surprising if the middle class stopped paying their taxes. Desperate times call for desperate measures.

Dave Harris, Edenburg

If we had an honest government there would be, by all reports, a R6-billion saving a year. We are paying for unsound government decisions on SAA and Eskom.

As for the 2c electricity levy being abolished when the crisis is over, we have heard such fairytales before.

Justin Bachmann, Sandringham

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