05 January 2010

Government should encourage people to be self sufficient

Submitted by: Cllr Rick Crouch
{pp}Socialist type governments continue to think that they can tax themselves out of debt, the working person can only sustain so much taxation, especially with the large increase in electricity looming.

I have followed with interest the latest talk on how much in debt the country is and the debates in parliament regarding the raising of personal taxes. I do not know why these socialist type governments continue to think that they can tax themselves out of debt, the working person can only sustain so much taxation, especially with the large increase in electricity looming.

The democratic party in the USA does exactly the same thing as the ANC does right here, maybe they should consider lowering the tax burden on the working people of this country. Consider this; if the PAYE tax rate is lowered it would  put more money into the pockets of the working “minority” thereby giving them more disposable cash to spend, with the consumers spending more money, the retailers are selling more and the manufacturers are supplying the retailers with more product. Now with all this selling and manufacturing going on there will be a need to hire more retail, wholesale and manufacturing employees thereby cutting unemployment rate and thereby adding more taxpayers contributing to the government coffers. It is a cycle that will keep increasing. The more disposable cash people have the more they spend the more people are hired to handle the increased business, etc, etc, etc.

Raising taxes will have the opposite effect, people having less disposable cash, spending less money, retailers doing less business, ordering less from manufacturers, then retailers, wholesalers and manufacturers having to downsize, that increases unemployment, and decreases contributions to the tax base and the government will then have to raise taxes again which will make the situation even worse.

Government should stop enabling people by giving them hand outs, they should rather encourage people to be self sufficient by giving them vouchers for education, giving businesses incentives such as tax breaks to train the unemployable.

Contact Information:
Rick Crouch
Chairman
Democratic Alliance Ward 10 Branch
www.ward10.za.com
tel: 073 418-6996
email: This email address is being protected from spambots. You need JavaScript enabled to view it.