There were 1,008 references to tax in the budget review, which made me anxious when I started looking just what the tax hikes would be. We knew the tax hikes were coming, but the extra R17-billion salary earners will have to pay is still going to hurt because it comes on top of forking out more for fuel, medical aid, school fees and utilities. And it's going to be felt throughout the economy, as service providers and retailers, and the manufacturers that supply these businesses, all get a smaller slice of consumer spending. The trade-offs consumers make anyway when deciding how to spend will become more acute. It may be a saving grace for the economy that each person has a different definition of what is indispensable. But the tax increases will mean that what last year was considered to be an essential monthly haircut is now necessary only every two months.
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