Kantor: A revolutionary economic lifesaver – eliminate corporate tax

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Brian Kantor is not one for mincing his words, and he’s dead set on finding the answers to South Africa’s current economic challenges. He’s previously targeted the Reserve Bank, highlighting the way to curb inflation is not by increasing interest rates, as they’ll throttle the economy. But those words flew on deaf ears after a 25 basis point increase at the last Monetary Policy Meeting, which saw the repo rate hit 7%.

And he is at it again. Kantor says the Davis Committee, as far as he can see, did not get to the root of the current problem. His revolutionary idea is to completely eliminate corporate income tax and replace it with a mixture of additional payroll and wealth taxes. Zero rating company earnings would provide a large boost for saving, capital expenditure, employment and the GDP growth rate.

The sums involved are not trivial: corporate income tax yields about R200bn per annum or close to 20% of all government revenues. It’s bold. – Stuart Lowman

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