Wealth tax can’t just be about raising revenue in an unequal society
The proposed wealth tax needs to be a socio-economic policy tool to effect a substantive change in wealth distribution
The call by the Davis Tax Committee for public comment on the proposed wealth tax should have generated strident debate on the merits and practicalities, or otherwise, of implementing a wealth tax in SA. But the response, at least in the public domain, from civil society, business, academia and the general public has been rather muted. In the coming months, the committee will have a lot to consider before it finalises its proposals on wealth taxes. It is important that, during this time, the public debate on wealth taxes continues. In brief, the committee proposed three additional wealth taxes for consideration and public debate. These are a land tax, a property tax (over and above municipal rates) and an annual wealth tax. What little debate we have seen has been rather muddled, often conflating what is just with what is practicable. Here, we share some thoughts on both aspects. In this regard, it is important to address two questions: is the wealth tax required from a social justi...
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