Economist Dawie Roodt argued that South Africa’s highly redistributive tax system relies on a small tax base to support a growing number of dependents.

Efficient Group chief economist Dawie Roodt estimates that for every R1 in tax paid by a family earning R2 million a year, they receive only 5 cents in government services.

As a result, much of the tax they pay is redistributed to other parts of the economy and other families in the form of social grants, healthcare, education, and, increasingly, debt repayments.

Sam Busa

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