Wealth tax on South Africa’s richest people could raise R160 billion, study shows | Citypress

An annual wealth tax on the net worth of South Africa’s richest people could raise as much as R160 billion and would narrow inequality in a nation where the most affluent 1% of the population own 55% of personal wealth, a study showed.

2021-01-20 07:30:00 PM

An annual wealth tax on the net worth of South Africa’s richest people could raise as much as R160 billion and would narrow inequality in a nation where the most affluent 1% of the population own 55% of personal wealth, a study showed.

An annual wealth tax on the net worth of South Africa’s richest people could raise as much as R160 billion and would narrow inequality in a nation where the most affluent 1% of the population own 55% of personal wealth, a study showed.

South Africa is one of the world’s most unequal nations, a legacy of the apartheid system of racial discrimination that disadvantaged the black majority and ended in 1994.A progressive wealth tax concentrated on those most capable to pay would be a significant policy tool to finance debt reduction.

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World Inequality Lab studyThe concentration of wealth is more extreme than in France, the US, the UK, Russia, China or India, and has not decreased since 1993, according to the study published on Wednesday.Under the moderate tax scenario, about 350 000 individuals would be subject to the tax, with the level ranging from 3% to 7% depending on affluence.

The top rate would apply to people with a net worth of above R146.89 million. Raising R160 billion in tax would be equivalent to 3.5% of gross domestic product, the study said.RECORD CONTRACTION“A progressive wealth tax concentrated on those most capable to pay would be a significant policy tool to finance debt reduction,” it said. headtopics.com

It would spare the “most vulnerable households, thus placing South Africa in a better position for an economic rebound.”Read:Wealthy taxpayers set to cough up R40bnSouth Africa’s economy is estimated by the government to have contracted by the most in nine decades because of the coronavirus pandemic.

The study was authored by Amory Gethin of the World Inequality Lab, which is linked to the Paris School of Economics, together with Aroop Chatterjee of Johannesburg’s University of The Witwatersrand’s Southern Centre for Inequality Studies and Leo Czajka of the Universite Catholique de Louvain in Belgium. –

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That 1% must be members of the ANC cabinet i suppose. Cc MxolisiBob It’s like saying we have oceans of water when there’s not a drop to drink for the thirsty ones. I mean why allow concentration of so much wealth and power in one family’s hands? Who does it serve? tito_mboweni, what happen to implementing this? And the StateBank?

It’ll cost those same people less to GTFO and move somewhere that grants them better value for the extortion fees they pay. R160 bill R 500 bill and yet ANC contributed fokkol with that. Reasons Why Not To Invest in South Africa: 1. Racist BBBEE laws 2. Corruption 3. Crime 4. Unfriendly labour legislation 5. Expropriation without compensation 6. Failing infrastructure 7. No electricity 8. Exorbitant taxation rates RIPJacksonMthembu

Assuming they stay to pay.... I trust you did not include CyrilRamaphosa and his billionaire and millionaire cadres into your calculation. They are exempted. Tbh, as a South African, I'm okay with this. BUT it's not going to help. We have a corrupt government. We don't get value for the taxes we pay. Increasing taxes and not decreasing corruption won't solve any problems.

The 'wealthy' are already leaving in droves, in fact if it weren't for covid travel restrictions, 10's of 1000's more would already have left, but a wealth tax will accelerate the exodus even more. We can expect a lot of wealthy South Africans in London then. They are most welcome. That's a lot of money, if only it could actually be used the right way without making it into the pockets of some comrades who in turn buy houses in Sandhurst and a bunch of luxury cars.

Sorry to break it to you but the 1% are far too wise to let you get your mitts on their cash. How do you think they got 55% of the wealth? mckaytracey I would suspect the other consequences of such a move may be more material than a one off boost to the fiscus Nkanyiso_ngqulu F off I pay enough tax....

And where will this R160 billion go? ThuliMadonsela3 It doesn’t matter how much money they trying to raise, sort out the corruption first. The money raised will never be enough, it will not be given to the needy, only to the people that have stolen enough already How would it narrow inequality? Government are already rubbing their fat fingers in anticipation.

It will also make them move to places that won't steal their millions. Mauritius, Luxembourg, Monaco will gladly take them in and protect their wealth. And it will raise nothing and harm the economy. Zimbabwe 2.0 loading faster than expected. To finance debt reduction for the money stolen by politicians n never tricked down to ordinary South Africans - Fok.

Obviously this will include Cyril , right ? I'm not saying I'm against it in principle but what's the point if the government just pockets the money? But all of that monwy will just go into ANC pockets. This is a proven fact in SA. As apposed to the trillions the ANC government has wasted and looted? ThuliMadonsela3 I went from being broke, homeless, and suicidal, to making $15k per week. My message to you is DON'T GIVE UP! Even when all seems impossible. I STILL work a regular job on top of my business because I’m scared to death to be homeless again. All thanks to mike83779344 I'm great

Would be useful if you showed us your calculation As R invested by SAs super rich into local productive employment benefits SA, it’s smarter to subsidise all productive investment & tax all excessive non-productive financial investments /savings, property, offshore investments & non-capital imports & not just of the super rich.

Apparently the tuck shop business is worth billions.... tax them. Stop taking from the same people who will eventually leave this country. While others are living tax free in SA. Equally miserable ThuliMadonsela3 😂😭 Since I don't fall under this tax bracket, the government must act fast before these people run away! Tax them, tax them all!

ThuliMadonsela3 Yoh then all the anc politicians and their cronies will be opening Swiss bank accounts It certainly could. And if the ridiculous insistence on reviving SAA with money that could be spent on vaccines etc, things would be even better, Amazing short sighted! You take the rich's money. Then everybody is poorer. How effective!!!!! Just lift booze ban then you have your billions. Media you are so short sighted even after so many has lost their jobs

The Scandinavian countries are widely regarding as the best countries in the world to live in and how did they do it by raising taxes on the wealthy in order to create a society that works for everyone and not just the wealthy This idea that raising taxes on the wealthy will lead to capital flight is a neoliberal myth show me one example just one where the reasonable raising of taxes on the wealthy lead to a statistically significant increase in the emigration of the wealthy

ThuliMadonsela3 So your idea of bridging the inequality gap is not to increase the income of the poor, but to make the rich poorer? And providing R160 billion more into a tax system that government individuals use as a personal cheque account thereby Enriching the already rich? Seems legit... ThuliMadonsela3 Yeah they will also leave the country in droves if you drive up taxes and then you are fucked because there will just suddenly be no more taxes.

ThuliMadonsela3 😂😂😂😂. Why writes this crap. The wealthiest are not stupid. Their wealth is well hidden. That is why they are wealthy ThuliMadonsela3 Assuming they stay to pay. Those rich people have money offshore and will do as much as they can to pay as little as possible. Don’t delude yourselves with this headline.

I owe you an apology to ever doubt your sincerity and professionalism. It’s was just like a dream to me when I received my first payment. After my second payment it became a reality now after several payments it has become a way of life. marksust7 But where would it goJust another feeding trough for the cadres

And get rid of bloated ministry!!! The wealth tax must come into effect immediately. The next step is for government to unleash the domestic economy which is 80% of any country's economy and downplay this nonsense called FDI which is a meager 20% of any country's economy. Reduce import drastically, consume local

You will never narrow inequality by redistributing wealth this way while millions sits in SASSA queues. Wealth will flee the system.