Saturday, September 26, 2009

Let the grassroots meet the treetops

The monthly income, of the population in South Africa, can be divided into five groups.

1. Monthly earnings of below R3, 000 per month group. (Lower income group) (Below grass roots) - The majority of citizens -
2. The R 3,000-10,000 per month group (What should be the middle class but is now the upper lower class) (the grassroots)
3. R10 -R20, 000 per month group or the upper middle class group. (The trunk)
4. The upper income group R20, 000 to R40, 000 (the branches)
5. The gluttonous group of over R40, 000 per month. (The treetop)

The aim should be to get the majority of money earners in the upper middle class and the base line for any South African the lower middle class.

A way to approach this challenge may be for the R20, 000 and over group of income earners to pay a percentage of poverty relief tax for each rand they earn over R20, 000.

This poverty relief tax should be used to

* supplement the basic pension to R3, 000 per month,
* to provide free schooling and medical care,
* and to boost the wages of the lower middle class group, so that the treetops do not tower so high above the grassroots.

Original post from: Get Africa Working

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