SA economy: backed into a corner
SA’s stagnant tax base is dwarfed by the growing need to provide support to the poor and unemployed. Covid has brought matters to a head, weakening the tax base just as demands for welfare have exploded
SA’s tax base has barely grown over the past decade, adding just over 500,000 people during a period in which the number of welfare beneficiaries has grown by 2-million and the number of unemployed people has exploded by 3-million.
Between 2012 and 2021, the number of broadly unemployed people climbed from 7.1-million to 10.1-million, while those on welfare rose from 16-million to 18-million...