In a recent presentation by Dawie Roodt, regarding the 2019 Budget, he discusses the economy and how it is affected by the people who run it, taxpayers who fund it, what a tax revolt by with holding taxes would achieve and a number of other very interesting facts.
Roodt points out that there is an ideological conflict within the ANC between Tito Mboweni and his supporters and the majority of ANC members, there is also conflict between the ANC’s alliance regarding organised labour. Whilst the budget touched on taxes and the Eskom expenditure there wasn’t much in the speech. “We are already over the ‘fiscal cliff’ and there is no way to turn the ship around.”
He also looked at the move toward Nationalism in many countries around the world and that too is affecting international markets and as the US dollar improves of course the Rand suffers.
Roodt adds that the ANC and the ANC coalition is the most destructive force that South Africa has ever seen. And that they are unable to feel the emotion of being ashamed for what they have done to the economy. The state owned entities are but a shadow of their former selves and have been utterly financially destroyed.
Education in the country is “absolutely horrible” and health services have become amongst the worst in the world and infrastructure is crumbling everywhere. The entire government is a corrupt organisation because of cadre deployment and state capture.
With regard economic growth, Roodt believes that the minister of finance is being far too optimistic and the growth will in fact be much lower.
The ANC is dependant on most of its revenue from people who do not support them like personal income tax payers who contribute 40% to the total revenue collected and this has been increasing over the last few years. Vat contributes about 26% but company tax continues to contribute less and less and is at about 18%.
For more information regarding the presentation the full video is below or you can view it here.
South Africa Today – South Africa News