TAX FREEDOM DAY (TFD) – when is TFD 2018? Why TFD matters
Every earner is taxed. Through one kind of tax or another, government takes a bit out of everyone’s earnings. This means everyone is forced to spend some months working for government. Tax Freedom Day is the day on which average South African income-earners at last start working for themselves, the day on which they have finally paid their tax bill in full.
In 1994 Tax Freedom Day was April 12. By 2017 it was May 25 – six weeks later Taxpayers needed to work six extra weeks to pay for government expenditure in 2017 than they did 23 years ago. Today government salaries alone consume more of our work than the entire state budget did in 1994.
Why is Tax Freedom Day important? SA needs growth. Taking taxes from the productive private sector slows not grows the economy. Return on investment in government is lower than in the private sector because government is both less innovative and less efficient. Shifting resource allocation from private enterprise to government slows economic growth. An increase in government power relative to civil society is a threat to our freedom. Corruption is limited only by opportunity. Putting more resources and funds in government hands inevitably increases corruption. When does Tax Freedom Day fall this year? Watch this space to find out when we can celebrate TFD 2018