Basic income allowance could have ‘huge, unintended consequences’

Basic income allowance could have ‘huge, unintended consequences’

Business Unity South Africa says basic income allowance should be carefully considered as it could have unintended consequences (Getty Images) A basic income subsidy would justify cuts in other priority areas, Business Unity South Africa said Monday.

It could potentially destabilize weak tax revenue growth and lead to other costly and disruptive effects on the economy, said Cas Coovadia, CEO of BUSA.

Instead, the business community supports social support through an unemployment insurance-type product, which fulfills certain conditions. Funding constraints mean the implementation of a basic income subsidy could lead to cuts in priority areas, Business […]

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