LETTER: The case against a solidarity tax

Prof Thuli Madonsela’s column, "The Case for a Solidarity Tax" (Protected Space, August 19-25), refers.

Let me begin by saying that it is not the principle of a solidarity tax I disagree with, but rather the practicality thereof, given SA’s current predicament. A decade of state capture, increasing water and electricity tariffs and climbing fuel prices, to name a few, have left many South Africans in a rather impecunious position and sceptical as to the ends to which their taxes are used.

With crumbling infrastructure and slow service delivery, citizens just don’t see the benefits of their taxes, and so they’ll perceive a solidarity tax as yet another attempt by a malevolent government to extract more money from a shrinking (and reluctant) tax base.

This reluctance will be compounded by the recent proposal to take 12% of working citizens’ earnings, ostensibly to contribute to a state-managed social security fund.

In the local lexicon, "state-managed" is synonymous with patronage and rent-seeking. Thus, few will be imbued with confidence about the imposition of a new tax.

Amid this background, a solidarity tax would not be well received. It’s also unlikely to provide any benefit to anyone (other than state officials, of course, given their track record in managing public funds).

The government must demonstrate competence and integrity before demanding more of its people (especially when "more" refers to our money). Once South Africans see that their money is contributing towards the public good (and we’re given a break on our electricity tariffs and fuel bills), the idea of a solidarity tax may yet find traction. Until then, it remains nothing but a pipe dream.

Michael McLaggan
Joburg

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