In early June the Centre for Development & Enterprise released a report in which it was argued SA could not afford to introduce a basic income grant .
Since the release of our report there have been two important developments: the BIG’s principal proponents nailed their colours to the mast about eligibility and value; and Business Unity SA released a report commissioned from Intellidex focusing on the financing of a BIG. Both developments reinforce and heighten our concerns. Our guess about the potential cost of a BIG was a dramatic underestimation.
Raising R280bn in new taxes using personal income tax would require raising everyone’s tax bill by an average of 48% The Intellidex report argues that raising the VAT rate is the least bad way to fund a BIG because it is the least distortionary of the major tax types. The report shows that raising VAT would have a smaller effect on the economy than increasing either personal income taxes or corporate income taxes, both of which are far more distortionary. It is also the only major tax type in which SA’s levels of taxation are lower than other developing countries.
Generating more corporate taxes by raising the rate of corporate income tax is also constrained. The rate is already relatively high. Only a small minority of businesses make a taxable profit: in aggregate, the 360,000 businesses whose taxes were assessed in 2019 made a collectiveThese facts show just how implausible it is to think there is an easy way to raise enough taxes to finance a BIG. They will be crippling. But that is only one part of the problem.
Source: Law Daily Report (lawdailyreport.net)
Becoming a great person in life do take time but time awaits you so get started with _JamesAlderson He's actually the best in the stock market. A highly recommended broker
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
REVEALED | How SA’s most notorious thugs got out of jail free and killed 24, including two Hawks officersThe number of case withdrawals involving dangerous cash-in-transit criminals is cause for serious concern Nothing is competent under Cyril. It's a reflection of the wider failure in leadership. NPA_Prosecutes Gangster state.
Source: SundayTimesZA - 🏆 47. / 51 Read more »
REVEALED | How SA’s most notorious thugs got out of jail free and killed 24, including two Hawks officersThe number of case withdrawals involving dangerous cash-in-transit criminals is cause for serious concern
Source: TimesLIVE - 🏆 28. / 59 Read more »
Source: News24 - 🏆 4. / 80 Read more »
DAVID FURLONGER: Tesla ups the brand anteChinese companies are the big winners in brand values ranking.
Source: FinancialMail - 🏆 20. / 63 Read more »
ANN CROTTY: Investec’s R2.2m sets alarming precedentInvestec will pay millions to keep its executives safe, but it raises questions, not all of them about bodyguards.
Source: FinancialMail - 🏆 20. / 63 Read more »
ANN CROTTY: Investec’s R2.2m sets alarming precedentWhat is the source of the statistics on which the decision to pay the remarkably hefty security costs directly to the individual executive is based? You will be shocked to discover how much many major SA corporates have been spending on security for their execs. Millions. For eg All the banks protect their top managers Considering how many execs are getting kidnapped and the ransoms paid this year I can't blame them. We all saw this ridiculous precedent causing problems and without a proper police response, you can't blame the businesses for protecting themselves.
Source: FinancialMail - 🏆 20. / 63 Read more »