The Western Cape is a significant net financial contributor to South Africa. By this we mean that the Western Cape pays considerably more into the fiscal system by way of taxes, than it receives back by way of services. A large portion of taxes raised in the Western Cape by the national government, as much as 67%, is used to subsidise the rest of South Africa and to service South Africa’s enormous debt.
Whilst some degree of cross subsidisation may well be necessary, consideration should also be given to how Western Cape taxpayers wish their taxes to be spent. It cannot be fair for example for the national government elected by voters outside of the Western Cape to allocate a disproportionately small portion of resources to the Western Cape, whilst wasting vast sums of money on policies and practices to which the Western Cape people are vehemently opposed. This is the situation currently.
Were the Western Cape able to retain its own taxes and use them to provide the services which the national government currently provides, the level of services offered could be dramatically improved. This would greatly benefit the Western Cape people. It should also motivate voters in other provinces to make better political decisions since they would suffer the consequences of their own poor choices and, one would hope as a result, hold their provincial leaders to account. Either way, the Western Cape people would no longer be forced to pay the price.
The Referendum Party will fight for the Western Cape to take control of its own taxation and to allow the Western Cape people to decide how best their tax money should be spent. If necessary, the Western Cape can then pay a fair share to the national government on condition that it is used appropriately.