Chris: Solidarity of course make an excellent argument. In the interview, the anchor asks Piet where we draw the line – can’t all expenses mitigating state failure be tax deductable? Piet’s response was a clever one in that he sought to avoid fully answering that question, the answer of course being that there is NO line. The case sets the precedent for rebates on just about every basic service that taxpayers use the private sector for in place of government. Of course, this is the strategic issue which smart state lawyers will be quickly savvy to. Whether this ultimately finds resonance with National Treasury remains to be seen, but it is a tremendous stab at achieving greater liberty and one that Solidarity should be commended for.
One other point: It is interesting to ask WHY pension savings and health contributions are deductible but not security or anything else? To me the answer is simple: pension funds and insurance funds get to pool huge amounts of capital that needs to be invested in order to meet future claims, and many of these funds are required by regulation to buy/own government bonds. The state will do anything to channel capital toward its debt pile. Private security expenditure goes to numerous competing firms for profit, wages & salaries, capital expenditure, hiring etc, not to government bonds.
I wish Solidarity and all of us the best of luck with this petition to Treasury.
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