Lower Taxes, more Freedom – Free Democrats of South Africa

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Lower Taxes
More Freedom

The case against South Africa's high taxation

The problem with our current rates:

The case for taxes in any form should stem from incentives and results. The Free Democrats acknowledge the unfortunate need for the state to collect revenue to perform the core functions of a society that the free market struggles to provide at scale such as the need for policing, a judiciary, national defence, and a limited amount of infrastructure. Everything beyond these basic functions amounts to taxation on the productive elements of a society that can only be justified by the results they deliver. The South African government in this case does not deliver.

The effects of high taxation:

suppresses economic activity,
Stifles job creation,
Limits home ownership,
Encourages emigration of taxpayers,
Punishes hard work, saving and frugality,
Prevents substantial private capital investment

What is needed?

The Free Democrats’ proposed tax cuts will pay for themselves in the long-term. Lower taxation rates on hard work, savings and investment incentivize the expansion of the tax base over time, and reduce the incentives to emigrate and for businesses to stay informal.

Lower company, dividend and personal income taxes.
Increase the primary rebate to R 300 000, meaning those who earn R 300k per year and less do not pay income tax.
Scrap red tape and unnecessary government regulations.
Reduce property rates and taxes by at least 15%.
Allow all home expenses, including bond finance and insurance cost, salaries and wages of gardeners and domestic workers, cost of security installations and monitoring fees, the entire monthly local authority utility bill and cost of maintenance and repairs AS INCOME TAX DEDUCTIBLE in the hands of the home owner.

“How can anyone be expected to work harder if tax claws back what work puts in? ... Men and women do not go out to work in the mornings thinking cheerfully, ‘Now what can I earn for the Chancellor today?’”

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