A comparative study on the benefits and disadvantages of implementing a wealth tax in South Africa

Abstract

INTRODUCTION : This dissertation is a study on whether implementing a wealth tax in South Africa is a feasible idea. Those who have suggested this want this tax to be levied on the white race because they benefited more from apartheid. RESEARCH QUESTION : My research question is whether implementing a wealth tax will be beneficial or detrimental to South Africa. The question also includes whether a temporary wealth tax, based on race, would assist in narrowing the gap between the rich and the poor and redressing the injustices (whether perceived or real) that resulted from the apartheid system. What must also be addressed is if an indefinite wealth tax, based on an individual’s net wealth as applied in other countries, would be beneficial or detrimental if applied in South Africa. RESEARCH METHODOLOGY : I use a comparative study between countries that have implemented the tax, be they developed or undeveloped, as well as a country that implemented it and then abolished it, in order to establish how it failed. I compare the histories, taxation systems, constitutions, and wealth taxes (if already applied) to reach a conclusion in my analysis of what its potential effect will be if applied in South Africa. Primary, secondary and tertiary sources are utilised as part of my research to answer my research question. CONCLUSION : My concluding chapter gives an indication of whether or not I perceive this tax to be beneficial to South Africa. Copyright