The cost of being middle class
Middle-class South Africans may enjoy a great climate, beautiful natural environment and a standard of living comparable with those in developed countries. But it doesn’t come cheap
Middle-class South Africans are under severe financial pressure. It doesn’t help that, even though they shoulder a hefty tax burden, they’re getting such poor-quality public services that many are paying again — for private security, education and medical care.
The late economist Mike Schüssler estimated that only 18% of SA’s total working-age population pays personal income tax (PIT) — one of the lowest shares in the world. This is because so few adults work in SA (36% against the global average of 54.8%). And of those who do work, few earn above the R91,250 annual threshold at which PIT becomes payable...
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