No law can indefinitely keep funding the squandering of tax money, as is currently the case in South Africa, and no government has the right to just keep collecting tax. It must be earned.
Without economic growth and an environment in which the private sector can optimally do business and create jobs, the tax base will keep shrinking while the social burden will increase accordingly.
The FF Plus foresees that the ANC government will increasingly resort to desperate measures to meet its obligations.
The three-year measure that aims to prevent emigrants from withdrawing pension money is an example. It is a desperate measure to stop people from emigrating. The government was unable to provide any other reason for the implementation of the measure and no other sensible conclusion can be drawn either.
What the government is actually supposed to do is to create a pleasant and business-friendly environment free of corruption where people feel at home and that they do not want to leave.
Increasing taxes, like excise duties, will be counterproductive and will severely restrict future economic growth by deterring investors and driving away the country's own citizens.
Above all else is the value associated with tax. In South Africa, taxpayers do not get value for their tax contributions. It all comes to nothing due to misappropriation on all levels of government, corruption and misguided priorities.
No legislation will change this in any way. The ANC and other parties like the EFF apparently think that money falls from the sky and that companies have access to inexhaustible sources of money from where more and more taxes can be collected.
They seem to overlook the fact that overtaxing business enterprises makes it impossible for them to grow, to pay salaries and to offer job security to their employees.
At present, the private sector seems to be the ANC and EFF's biggest enemy. And yet no economy can do without it. Therefore, this sector must be cherished and not crushed. No law can force someone to give more than what they have.
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