Business Day 26 May 2016

Dear Editor of Business Day,

Leon Louw is wrong about today 145 days of taxes being Tax Freedom Day (Later Tax Freedom Day sounds a warning-BD 25th May 2016).

His mistake is that landowners pay a lot less income taxes and vat. In effect they loan funds to the fisc and wait for their land prices to rise in recompense. National Treasury has calculated that average citizens in Southfield (an average Cape Town suburb) income taxes were assessed at R56K in in 2014. At a CPI rising four times since 1994 the average income taxes paid over twenty years was R570K per person. According to ABSA land values in Southfield rose by R532K over the same period.

This is the problem when the state targets hard-earned work and savings for its piggy bank and not the unearned land rents which bubble up because of nature’s bounty, state infrastructure as well as services.

Don’t hesitate to highlight emotional inputs.

Regards
Peter Meakin
Registered Professional Valuer
Member SA Institute of Valuers

photo credit: CubeToys-003 via photopin (license)

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