21million social-welfare citizens; only 3,5m taxpayers
1 July 2013 Leave a comment
21-million of the 51-million legal SA residents applied for social welfare benefits in 2013. By 2014, its budget is expected to soar above R116-billion. link
- SA only has 3,5million taxpayers who contribute more than 87% of all the taxes.
This small but crucial group of taxpayers – business people, industrialists and agricultural businesses: are thus increasingly burdened with South Africa’s lavish social welfare budget. Yet it’s precisely this small but crucial taxpayer group which is also placed under the heaviest political, socio-economic and criminal pressure. They face constant threats of nationalisation, and work under some of the most criminally-dangerous environments in the world: criminality which is encouraged by its own government.
“Economic Freedom in our Lifetime” campaign: Political pressure growing on taxpaying business people:
- Many of SA’s businesses are under severe stress, with calls by ANC-propagandists to nationalize all the remaining private properties, with the slogan ‘economic freedom in our lifetime’. And the ruling triad partners, the ANC, the SA Communist Party and the Cosatu trade union movement, have for the past few years been running an unprecedented, violent campaign targeting entire central business districts, the mining industry and the agricultural community.
Buying votes for the ANC
Political analysts often also view the social-welfare budget as a ‘vote-buying’ device to keep the ruling African National Congress party in power, since 98% of all its recipients are blacks. And a major problem also remains: the high level of social-welfare fraud.
Rising taxes for a shrinking tax-payer base:
In the 2010/2011 fiscal year the SA revenue service said it collected R674 billion in tax revenue link
In the 2009 fiscal year the SA revenue service collected R154.1 billion in tax revenue mostly from 3,5 million taxpayers link
On June 28 2013 Independent Newspapers reporter Michelle Jones email@example.com writes from Cape Town that in the 2013/14 book year, more than 16-million of the 51-million South Africans were already living on social welfare. And, the ANC-regime also warned, that 2,1million children still have to be added to the budget.
Who is going to pay for it?
We insert this important note – namely the fact that the number of taxpayers far outnumber the social-welfare recipients. Solidarity Research Institute has found that by 2011/11, about 2,1million people already paid 92% of all the income tax, and 1,4million paid 82% of all the income tax. In the 2010/2011 fiscal year the SA revenue Service said it collected R674billion in tax revenue…
It can be seen from the above 2010/2011 taxpayer comparisons, that the number of taxpayers who contributed the most taxes did not rise very much from 2009, when there still were 3.5 million assessed taxpayers (with a total taxable income of R632.6 billion), of that they were liable to pay R154.1 billion. Of them 28.8% were between 35 to 44 years old and 56.7% were male, 3.9% (136,124) of them had business income. Although the number of tax payers has increased from previous years, most taxpayers fell below the R120,000 taxable income threshold and so were not required to submit an income tax return and were therefore not included in the 3.5 million assessed taxpayers. In 2009, R154,1billion was paid to the SARS in income tax. The following year, they claimed they gathered R674 billion, basically from the same taxbase. “2010 Tax Statistics – Highlights”. SARS. 2010 p://www.sars.co.za/Tools/Documents/DocumentDownload.asp?FileID=66375 and http://www.mises.co.za/2012/03/how-many-taxpayers-are-there-really/
Since 2010, the number of people on social welfare clearly also far outnumber people with actual jobs in South Africa, the research by the South African Institute of Race Relations revealed.
The SAIRR compared employment data from the South African Social Security Agency Sassa with the number of people who receive social grants. It was found that ever since 2010, for every 100 people on social welfare just 90 people were employed. The number of South Africans on social grants had increased by more than four times in the last decade, while the number of employed people had remained almost constant.
- In 2009 there were were 3.5 million assessed taxpayers with a total taxable income of R632.6 billion of which they were liable to pay R154.1 billion. Of them 28.8% were between 35 to 44 years old and 56.7% were male, 3.9% (136,124) of them had business income. Although the number of tax payers has increased from previous years, most taxpayers fell below the R120,000 taxable income threshold and so were not required to submit an income tax return and were therefore not included in the 3.5 million assessed taxpayers
- This shows a dramatic rise since 2001: for every 100 people who were receiving social grants, 330 people still had jobs in 2001.
In 2014 the SA social grant expenses are expected to rise above R116 billion.
Assa said in a press release: “The highest proportions will be spent on old-age pension and child support grant transfers, at 39 percent and 37 percent respectively. And that excludes an estimated 2.1million children who are eligible, but are not receiving grants. “If all eligible children received this grant, it would push social grant expenditure up by more than half a billion rand” read the release. http://www.iol.co.za/news/south-africa/more-people-on-welfare-than-working-1.1539021#.Uc6F9NhBPGg
Value of individual social grants per month, 2013/14:
Old-age pension: R1,260
War veterans: R1,280
Foster care: R800
Care dependency: R1,260
Child support: R290
And this heavy expenditure on social welfare in a society where unemployment has doubled since the end of apartheid in 1994, puts a heavy strain on the country’s tax base.
How Many Taxpayers Are Contributing the Most?
Paul Joubert, researcher at the Solidarity Research Institute, wrote on March 27 2012: “About 3,2 million people were responsible for payment of 99% of all income tax in 2010/11. Approximately 2,1million people paid 92% of all income tax and 1,4million people paid 82% of all income tax.… In fact, South Africa has only approximately 3,2million taxpayers and, strictly speaking, between only 2,1million tor 1,4 million pay truly significant amounts of tax. “Concerned citizens who claim that there are only five million taxpayers in South Africa are incorrect, but the real figures give even greater cause for concern.” http://www.mises.co.za/2012/03/how-many-taxpayers-are-there-really/
SASSA acting head Lerato Moloi also warned: “South Africa’s tax base will not grow fast enough to keep supporting the millions of vulnerable individuals who rely on monthly cash transfers from the State.”Moloi also added, writing in the institute’s most recent Facts publication, that ‘while the state continued to push money into social services, particularly social grants, the budget deficit continued to grow. Moreover, “the money invested in free schooling also does not seem to be improving the quality of education, which would produce skilled employees and in turn, contribute positively to the economy,” she noted.
Finance Minister Pravin Gordhan – in his Budget speech earlier this year – also said that ‘spending on social assistance would reach R120bn next year (…) but that it was not a substitute for job creation.”
Above was based on articles:
Buying votes ANC donors Gupta family buys votes with food-aid parcels:
The Gupta family accused of distributing food parcels at African National Congress North West branch meeting to sway decisions in favour of President Jacob Zuma http://www.mmegi.bw/index.php?sid=11&aid=127&dir=2013/May/Wednesday15
Joe Seramane on NW province accused African National Congress of “buying votes through the land restitution process”.
“Now that the election was approaching, it was handing over cheques to land claimants to win rural votes”
African National Congress admits bribery and vote buying are widespread in its branches http://allafrica.com/stories/201008050009.html
Economic Freedom in Our Lifetime video
2012/2013 fiscal year:
Social welfare applicants exceed 21million in 2014 – http://www.sowetanlive.co.za/news/2013/05/09/21-million-re-register-with-sassa
2010/2011 fiscal year:
It can be seen from the 2010/2011 taxpayer comparisons, that the number of taxpayers who contribute the most taxes did not rise from 2009 – but this small group also paid dramatically higher taxes when they reached 2010. In 2009, there still were 3.5 million assessed taxpayers with a total taxable income of R632.6 billion, of that they were liable to pay R154.1 billion. Of them 28.8% were between 35 to 44 years old and 56.7% were male, 3.9% (136,124) of them had business income. Although the number of tax payers increased from previous years, most of these taxpayers fell below the R120,000 taxable income threshold and so were not required to submit an income tax return and were therefore not included in the 3.5 million assessed taxpayers for that year. “2010 Tax Statistics – Highlights”. SARS. 2010 http://www.sars.co.za/Tools/Documents/DocumentDownload.asp?FileID=66375
Central Business Districts, Mining industry and Agricultural communities of SA under violent attack:
Above: US Dept of State,Bureau of Diplomatic Security, 2013 Crime and Safety Report, South Africa: “What distinguishes crime in SA is the level of violence associated… criminals are not hesitant to use lethal weapons… and crime permeate the entire country, regardless of the socio-economic sta tus of a particular neighbourhood: https://www.osac.gov/Pages/ContentReportDetails.aspx?cid=13642
Central Business Districts attacked by violent gangs: US
Dept of State: Dept of Diplomatic Security crime warnings: 2012: https://www.osac.gov/pages/contentreportpdf.aspx?cid=10935
Mine Union Threatens to Bring SA to a Standstill: http://www.reuters.com/article/2013/05/17/us-safrica-strikes-idUSBRE94G08020130517
Cosatu Threatens To Bring SA to a Halt: 2011http://www.sowetanlive.co.za/news/2011/09/09/cosatu-threatens-to-bring-sa-to-a-halt
Beleggen in Zuid-Afrika: is Dat Nog Wijs? (Dutch article: investing in SA: is that still wise? http://censorbugbear-reports.blogspot.com/2013/01/beleggen-in-z-is-dat-nog-wijs.html
Three men destroyed Agricultural Sector: TAU:http://censorbugbear-reports.blogspot.com/2013/02/three-men-destroyed-agrisector-tau-sa.html
Cosatu shuts down farming towns: http://censorbugbear-reports.blogspot.com/2012/11/farm-murders-national-crisis.html
Hexrivier orchards torched, residents chased from homes and CBD’s: http://censorbugbear-reports.blogspot.com/2012/11/hexrivier-wine-farms-torched-de-doorns.html
SA farm murders grow more sadistic, with long-term torture and mutilation before victims are murdered: http://censorbugbear-reports.blogspot.com/2012/12/sa-farm-murders-grow-more-sadistic.html
Secret war against Middelburg Afrikanershttp://censorbugbear-reports.blogspot.com/2012/10/secret-war-against-middelburg-afrikaners.html
Agriculture in South Africa: Two Different Worlds:
SA Whites flee in fear from Black Militia Gangs:
Sadistic nature of senseless violence in South Africa: hatecrimes by black-racists: http://censorbugbear-reports.blogspot.com/2013/02/jan-2013-black-racist-attacks-murders.html