Khaya Sithole | A shot in the arm for SARS, a breather for taxpayers

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
0:00
play article
Subscribers can listen to this article
Khaya Sithole (Supplied)
Khaya Sithole (Supplied)

In a rather surprising twist, Mboweni and his team abandoned the course mooted in October and actually offered tax relief, says Khaya Sithole. 

Forty years ago, Ronald Reagan moved into the White House as the new president of the US. Before then, as a Republican candidate seeking to unseat Democrat Jimmy Carter, Reagan didn't have much going in the way of an appealing message until June 1980 when a little-known theory formed the centrepiece of his campaign. Six years earlier, in 1974, at the Two Continents restaurant in Washington,  DC, Arthur Laffer had sat down to dinner with two Republican staffers in the Gerald Ford administration – Donald Rumsfeld and Dick Cheney.

In seeking to explain how tax rates related to government revenue, Laffer had drawn a graph on a napkin that theorised that if governments taxed people in full, no one would work and no taxes would be raised. Similarly, if government taxed no one at all, then no taxes would be raised. In Laffer's view, the government of the day needed to find the right level of taxation that did not discourage people from working.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
USD/ZAR
14.17
(-1.6)
GBP/ZAR
19.52
(-1.6)
EUR/ZAR
16.95
(-1.7)
AUD/ZAR
10.98
(-1.2)
JPY/ZAR
0.13
(-1.4)
Gold
1,763.25
(+1.6)
Silver
25.84
(+1.7)
Platinum
1,196.50
(+1.9)
Brent Crude
66.58
(+4.6)
Palladium
2,745.14
(+2.5)
All Share
67,823
(+0.0)
Top 40
62,080
(-0.0)
Financial 15
12,342
(+1.5)
Industrial 25
88,642
(-0.2)
Resource 10
68,828
(-0.3)
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1273 votes
No, I did not.
51% - 3156 votes
My landlord refused
28% - 1700 votes
Vote