Thread by @mikeschussler

Mind the GAP – a few thoughts on the primary deficit!
SA government spending will exceed revenue by R375 billion next year! Of that R143 billion is the primary deficit (i.e. excludes paying back interest on debt).
Just to close the primary deficit of R143 billion from Vat alone1

would mean VAT increasing from 15% to 22%
Closing the primary deficit with personal income tax alone would increase PIT by 20%! So excluding bracket creep the 18% rate would increase to 21,6% and the 41% rate to 49% and the 45% rate to 54,5%! 2

Closing the R143 hole with the fuel tax alone would mean increasing the fuel tax from R3,52 to R10,57c taking the current Gauteng price from R16,21 to R23,26!
Or the Government can just close the police services and courts saves about the same money. 3

BTW stop all funding to university & colleges will not be enough to close the GAP! We could also cut social grant by two thirds just to close the primary deficit.
To balance the budget in full; Government would have to eliminate ALL health spending and raise VAT to 22%! 4

Or just not spend on ANY education at all that should just about do it!
This ain’t no party this ain’t mucking about; this the damage by corruption & inability.
BTW the extra bailouts this year total R36 billion so far that’s close to a 2% increase in the VAT rate. Just saying 5