Tax Cuts Boost Economic Growth in South Africa

Infometrics - a leading economics consultancy in Wellington - have prepared an article (http://www.infometrics.co.nz/article.asp?id=4449) comparing tax rates and economic growth in South Africa and New Zealand. In particular it highlighted the rising living standards in South Africa - especially for the poor.

"The ANC have cut personal tax rates in almost every budget since taking power in 1994. The majority of tax relief has been handed to low and middle income earners."

"A strong economy (which brings healthy government revenue) coupled with a redirection of expenditure to the poor has been the backbone of the ANC’s strategy to achieve ‘A better life for all’. Growing government revenue has enabled them to build 2 million new houses, bring piped water to 17 million people, sanitation to 7 million and implement a social welfare system which is the envy of the developing world. The percentage of the population living in poverty dropped from 41% in 2000 to 32% in 2006. The growth momentum will ensure that further gains in poverty alleviation will be achieved in the future."