How the poor support the rich in SA


June 8 th, 2015

The government lives at the expense of taxpayers. Some argued that SA’s government wastes no cost to taxpayer. It is, however, the most deceptive and destructive myth, according to an analyst from the Free Market Foundation on  Waste, patronage, nepotism, favouritism, racism and corruption occur to the detriment of the intended beneficiaries. After deducting the public debt, more than half of what remains is spent on education, health, social transfers, development and housing. The rest is spent on infrastructure, security, public administration and others, usually intended for the poor. Unfortunately, 75% of every rand is reassigned at their expense. Rich people are meant to pay more tax, but in reality, they only contribute a small proportion of total revenues. In addition, there’s a lot of tax evasion. SA has the highest tax rate in the world, but companies only contribute 18% of total revenue.


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