The Watchdog SABC news, based on reports from the Institute of Economic Justice, discusses how the basic income grant may be financed by a social security tax, amongst other strategies.
Dr. Issac highlights taxing financial transactions, which is a strategy implemented worldwide, where currency transactions and financial transactions are being taxed. He also considers a tax on the stock of wealth that we as a whole hold.
“Everyone pays tax” – Dr Issacs states.
A third of government income comes from tax, most of which is considerably misused. According to Dr. Issacs from the economic justice institute, there is a combination of options that we can explore that will be sustainable and that will able to raise necessary revenue.
The higher wealth income earners need to have their taxes increased and used to finance income for the masses who do not have access to sustainable income, identifies Dr. Issacs, the people who earn more are also privileged to insure private taxes which offer private healthcare of provident funds to secure life after retirement.
It is right that the South African Reserve bank has a strong developmental role in our economy, and in small business support. A shocking 120 billion rands in expenditure can be used towards the Basic Income Grant.
Isobel Frye outlines the statistics of hunger in the nation, a stunning 13 million hunger percentage, with 3 million being children is constantly being downplayed. People’s current needs are not being met. Disassociation of People becomes detrimental to the next generations.
The next generation aren’t getting the developmental skills that they need. Before COVID-19, we had 5 years of negative economic growth. Employment is no longer sufficient in meeting our humanitarian needs.
Isobel also relays that the National Treasury is very aware of the burden of running a fiscus, we need to look at this urgently, where is the political choices made?
“Politicians want to tell a good story” Frye adds.
Policy makers have to know the truth before they can reach the scale of intervention.
Source: SABCnews, The Watchdog
