Tax shambles: bailing out flailing SOEs
Rescues will end if the brightest can be enticed to work for state ventures
Our country faces what is said to be the highest marginal tax rate since the end of apartheid. This and other tax increases are the measures we must take to fund increasing government expenditure. It is imperative that we maintain the kind of national budget that guarantees a good investment-grade status. As such, when faced with the challenge of rebalancing the budget, there are only two ways to go: increase collections and decrease spending. The average citizen always feels the pinch the most when taxes go up, as will be the case this coming year - even more so for those who face the new "aggressive" tax bracket introduced for high-income earners. The more we feel the pinch of increased collections, the more curious we become about where the money is being spent. Of course, there are essential services that the budget needs to fund. But what about the fact that we are allocating more funds towards bailing out state-owned enterprises?Finance Minister Pravin Gordhan announced that b...
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