BRIAN KANTOR: Tax burden and slowing GDP growth add to income and revenue woes
Slowest nominal GDP growth since the pre-inflationary 1960s bars efforts to reduce the debt-to-GDP ratio and worries credit-rating agencies
It is common cause that slow economic growth depresses growth in tax revenues. What is not widely recognised is the influence of tax rates and taxation on economic growth.
The burden of taxation on the South African economy — measured by the ratio of taxes collected to GDP — has been rising as GDP growth has slowed. This has added to the forces that slow growth in incomes and taxes.