The typical PAYE income taxpayer in SA, gross salary is R21k per month. At today's exchange rate the person working at minimum wages at Mcdonald's in the USA would earn this income in just two-thirds of a month. Just 3,5 million South Africans earn more than this amount. 1/7
The typical income tax payer in SA has a marginal 26% tax rate. In many other countries, this would be far less. In Florida, you would pay a marginal rate of less than 17% ($1350) (including health insurance and social security) &receive food stamps, housing allowance etc 2/7
In fact, the income taxpayer in Florida would be able to get as much back from the state as the tax paid or even more. But in SA, the typical income taxpayer gets nothing back & likely has to pay school fees, etc. The personal income tax burden in SA is the 10th highest 3/7
Our government wastes money and never says no to any crazy suggestion. SA has less than 7 million income taxpayers but 28 million people who receive grants. So someone who would be likely to pay close to zero tax in most other countries faces a hefty tax rate in SA. 4/
Moreover, we fund extensive parts of 4 other countries. We also pay kings and traditional leaders. Close to a quarter of the 7 million income taxpayers work for the state. So the private-sector income taxpayers are less than 5,5 million. This is a meager number 5/7
In essence, SA income taxpayers are so few and poor in world terms, yet they fund most of an enormous government and the world's highest portion of people on grants. Most of them would be net-zero income taxpayers in most developed countries! CRAZY! UNSUSTAINABLE! 6/7
The government needs to pay the grants to stay in power, so it cannot stop paying them. It has to pay 85% of customs revenue to other countries (making cell phones and cars far more expensive here). This cannot last. Go elsewhere to earn income young people. 7/7
What one needs to know is that South Africa's richest 10% of adult earners earn less than the USA minimum wage a Mcdonald's! That needs to be explained to the government, many academics and people who think just spend a little more....that may however fall on deaf ears.
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