How will 45% tax hike for super-earners grow economy?

Economist and Nascence Advisory co-owner, Xhanti Payi, says South Africans will have to hope that the 45% tax increase for high-earners will make a difference and bring down the high levels of inequality.

Yesterday Finance Minister Pravin Gordhan announced government plans to tax those earning more than R1.5 million a year 45% of their taxable income.

If we are saying we want to move more to the left and be a developmental state, we have to trust the State that it is developmental.

Xhanti Payi, economist and Nascence Advisory co-owner

One of the interesting is that when people are taxed more they save less.

Xhanti Payi, economist and Nascence Advisory co-owner

One of the big things is to ensure that people save more so that banks can use it to invest, individuals borrow to invest in businesses and infrastructure. If it ends in the hands of government does it mean that we are actually going to invest more in this economy, create jobs, so we can grow that base.

Xhanti Payi, economist and Nascence Advisory co-owner

If it ends in the hands of government does it mean we are able to invest more in the economy, create more jobs so that we can actually grow that base?

Xhanti Payi, economist and Nascence Advisory co-owner

It all about growing the base and in whose hands money does better to grow the base?

Xhanti Payi, economist and Nascence Advisory co-owner

Listen to the full interview below...

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