The Taxpayer Who Never Gets Credit: How South African Labour Finances Capital and the State
Tax debates in South Africa usually center on the country's small formal taxpayer base. Workers, though, also fund the state through PAYE, VAT and other consumption taxes. These contributions rarely get acknowledged in the wider discussion about taxation. The way the burden falls raises questions about who actually creates economic value in the country. It also raises questions about who ultimately carries the cost of financing the state. The article's framing points to labor as the taxpayer that never gets credit, quietly financing both capital and the state.
South Africa’s tax debate often focuses on a small formal taxpayer base. But workers also fund the state through PAYE, VAT and other consumption taxes—raising questions about who creates economic value and who bears the burden.