Friday, January 08, 2010

Pressure on Gordhan to Raise Tax

January 7, 2010

By Donwald Pressly

Pressure is building on Finance Minister Pravin Gordhan to raise taxes in his national budget next month to finance an expanded budget deficit, which most economists believe will reach a level higher than in the pre-democracy period.

This week the Treasury issued a statement on national revenue, expenditure and borrowing indicating that tax revenue to November for the year was R337 billion compared with R363bn the previous year to November. In contrast, spending was up to R489bn to November, from R403bn up to November the previous year.

Econometrix senior economist Tony Twine said that Gordhan might choose to boost flagging revenue "a little sneakily", by avoiding direct personal and corporate tax increases, but allowing bracket creep to do its job.

But Cosatu Western Cape general secretary Tony Ehrenreich, who is also an economic analyst, said there was a perception that politicians spending money on fast cars and luxury hotels had added to the expenditure burden. While this was "a minuscule" part of the budget, it did, indeed, send the wrong signal.

read the rest here.

9 Opinion(s):

Anonymous said...

Only a matter of time till the gravy runs out on the train.

Anonymous said...

Yes - let's once again raid the minority tax payers to pay for the mistakes of the government. How about this - how about increasing the VAT thereby making EVERYONE pay for the funding of the country. Why is it always the working tax payers that get punished?

Mad Kiwi said...

Interestingly there is no bush war and expensive sanction busting black market trading going on as in the 70's and 80's.

The dark green gravy train got a lot longer, but not for one moment do I believe the old Nat regime whitey gravy train was any less proficient at enriching themselves.

So where is the tax money going? Or is simply because 1 million of the old tax payers base have left?

Anonymous said...

@ Anon 11:18

Raising VAT on non essential items is an excellent and fair idea.

Unfortunately these Marxist devils are anything BUT fair.

Pensioner said...

Well we all knew that someone was going to have to pay sooner or later for all the excesses that the "government" has been spending on themselves. And for Ehrenreich to say that the cars and luxury hotels are a "minuscule" part of the budget, is totally stupid and; ignores the other expenses such as
1. Security upgrades at the Mbeki and Zuma residences.
2. Zuma's increasing the ministerial positions by totally unacceptable numbers.
3. the huge expenditure to increase the military hardware that now stands around unused because there aren't enough pilots, qualified sailors etc. to operate the equipment.
I could go on and on but I am sure you all know what I mean.

Anonymous said...

@MadKiwi- are you kidding? Just how much money do you think the NP skimmed compared to the looting that's going on today? Did we not have first class hospitals; roads; buildings; houses; schools; etc?? Where do you think the tax money went in the old days? PW Botha retired to a modest house in Wilderness (I drove past it often so I know what it looked like) and his kids worked for a living. I can't believe people even try to slander the NP by comparing them to the absolute corrupt and terrorist ANC.

Anonymous said...

Ohhh please the NP was also corrupt. They were not angels as you wish to make them to be. Where did the hospitals come from ---- do you know how much debt South Africa had from loans?

Vanilla Ice said...

@Anon 11.38. Noboby is denying that the Nats may have been corrupt; but equating the shoplifting of candy to the wholsale looting of a warehouse, are two different things. Perhaps you will have the smarts to figure out the difference.

Islandshark said...

You will find corruption to some degree in most governments.

But if you cannot distinguish between a level of corruption where a civil servant gets a holiday abroad for awarding a contract and one where the servant is embezzling millions at the expense of the country's infrastructure, you are more than a little delusional.