Is the South African middle class overburdened by the tax system?

CapeTalk's Kieno Kammies received two conflicting calls, one from a caller who is complaining about high taxes paid by the middle class and the other from a listener who says the middle class should be grateful and that the poor are suffering the most.

Professor of Economics at University Of Stellenbosch, Servaas van der Berg, says both the middle class and the poor have the right to complain because times are tough for everyone.

Often when growth declines everybody feels the pressure and often the complaint is that it is better for others and I am suffering when the reality is that we are all victims of low economic growth.

Servaas van der Berg, Professor of Economics at University Of Stellenbosch

Servaas spoke of other issues that are making things a bit difficult for both the middle class and the poor. He says the security system is dominated by private security meaning that they have to spend more money to ensure their safety.

Another factor is that everyone wants better education for their children which doesn't come cheap.

This means that people's living standards are affected by all that...

Servaas van der Berg, Professor of Economics at University Of Stellenbosch

One can understand that middle class people are not really satisfied with the situation but neither are the poor.

Servaas van der Berg, Professor of Economics at University Of Stellenbosch

Listen below for more from Servaas van der Berg:


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