With the 2009 election coming up the government is going to to be looking for more money to pay for the promises they have made to the people of South Africa. What is a real concern to some people is that they could decide to gather those funds from the tax payer.
One of the governments options will be to increase individual tax and set the maximum tax rate at more than 40%. Highly paid individuals are already being taxed a great deal on their income and a decision like this may anger many people.
This could also be another severe blow to households already struggling to stay afloat. The property markets poor performance last year left many people in financial crisis, this on top of the interest rate hikes that came one on top of the other.
Increasing individual tax could be the final blow for many cash-strapped households.
