Thoughts on tax

From time to time it’s stated, ‘government must create jobs.’ I’m not sure that I understand that. Who wants to work for the government? Would be my first question. My next would be ‘why do so many South African’s expect the government (like a father) to do everything for them?’ I suppose that expecting government to create jobs must be a socialism thing – which up till now hasn’t worked, England is a good example. Dispute the fact that many jobs have been created in that country the unemployment rate today, when compared to five years ago is the same, proves this point. (granted, 80% of the work went to emigrants) Of course you’re wondering how this reflects on our country. This is an easy one. Zimbabweans.

Government must refrain from creating jobs/work. Rather government should create an environment where more jobs can be created – this is where they are failing.

How should we go about this? I believe that a drop in taxes (across the board) will stimulate the economy. The fact is that the middle class bear the greatest part of the tax burden. We shouldn't be writing tax laws in favor of the rich, or the poor. We need a fair taxation system where everyone is taxed at a rate they can afford.

Now of cause you’re thinking ‘great idea can’t be done’ of course you’d be wrong.

Scrap all tax laws in their current form. Then have everyone in the Cape Republic to have a bank account (you can’t be paid if you don’t have one.) Then it’s a simple case of 1/1 tax system. When money is put into the account 1% is taken away for tax. When you withdraw 1% is taken away for tax. Needless to say, paper money would disappear. This would be a great thing as it is a cost that the taxpayer can do without.

Consider it for a moment. The only tax is the 1/1 system. No vat. No PAYE. Nothing. Only the 1/1 system.

It also means that companies can’t take the tax system for a ride – like in the case of General Electric a few months ago who not only made a profit of something like $50 billion but also got a tax rebate of something silly like $16 billion. Granted. That was in the U.S. It doesn’t mean that it’s not happening in the Cape Republic.

A Keep It Simply Stupid tax system is the way to go.