Articles for December 2023
Is South Africa heading for a fiscal crisis?
Are budget cuts the only option to reduce the deficit and cut the national debt? Or has the main economic challenge been misstated? The Institute for Economic Justice argues that the county’s main challenge is not the debt burden but growth, and that there are a number of steps National Treasury could take to raise more revenue without cutting spending that threatens development and socio-economic rights.
What has happened to the personal income tax base since 2011?
The number of personal income taxpayers and aggregate taxable income increased strongly between 2011 and 2017 despite a slowing economy. These both declined during the Covid period and have since recovered, though more slowly than in the earlier period. In 2023, there were 7.6 million taxpayers above the threshold, up from 5.9 million in 2011. What role has tax policy played in the resilience of the tax base – and what do the trends indicate about progress towards a more inclusive economy?