High tax 'will wake rich into getting involved'
Hold government accountable, says activist
Finance Minister Pravin Gordhan had South Africa's super rich wincing this week with his announcement that those earning R1.5-million per annum, or more, would be taxed a whole 45%. They are not alone. There are about 20 countries where the tax rate is above 45%. According to KPMG, such a tax rate is not out of the ordinary in developed and developing countries. These include Denmark, Chad, Spain and Ivory Coast, which all collect above 40% tax from their highest earners. But what do taxpayers get in return? In Denmark and other Scandinavian countries with tax rates above 50%, the government offers free schooling. There is also free health and dental care for under-18s and all parents get personal benefits of up to R16,000 each year for child allowance. It's a far cry from the South African child-support grant, which is only for parents who either don't work or earn in the lowest tax bracket, which is just below R4,000 a year. Besides free primary, secondary and tertiary education, ...
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