A recent article in the Business Daily highlighted the plight of retired grannies who spend most of their pension on grandchildren. The reason is that the parents of those children cannot fully meet their needs due to various financial challenges, such as joblessness.
This problem is not limited to poor people in rural areas. It also affects well-off individuals who have worked for international organizations like the UN. The levels of dependency in Kenya are too high. This is why you can find people in their 40s or 50s who have worked and made money yet have nothing to show for their efforts.
Black tax is a term used to describe the financial burden that black people often bear in supporting their extended families. This is due to a number of factors, including historical systemic racism and discrimination, as well as the legacy of slavery and colonialism.
In Kenya, the black tax is a major issue. Many people struggle to support themselves and their families and cannot save for the future. This significantly impacts the economy, as people cannot invest in businesses or buy homes.
The Kenyan government should consider offering black tax relief in income tax deductions. This would help reduce the financial burden on people supporting their extended families and free up more money for them to save and invest.
There are a number of countries that have already adopted black tax relief, or something similar. For example, in South Africa, there is a tax deduction for dependants. This means taxpayers can deduct the cost of supporting their dependents from their taxable income.
In the United States, there is a tax credit for children and other dependents. This credit is designed to help taxpayers offset the cost of raising children and other dependents.
Offering black tax relief in income tax deductions would be necessary to address financial hardship in Kenya. It would help reduce the burden on people supporting their extended families and free up more money for them to save and invest. This would have a positive impact on the economy, as people would be able to invest in businesses and buy homes.
In addition to the social benefits of black tax relief, there are also several economic arguments in favor of it.
- Increased economic activity: When people have more money to save and invest, they are more likely to spend it on goods and services. This leads to increased economic activity and job creation.
- Reduced poverty: Black tax relief would help reduce poverty by increasing the disposable income of people supporting their extended families. This would allow them to meet their basic needs and improve their quality of life.
- Improved social cohesion: Black tax relief would help improve social cohesion by reducing the financial burden on people supporting their extended families. This would make it easier for them to maintain strong family ties and community support networks.
Black tax relief is necessary to address financial hardship and promote economic growth in Kenya. The government should consider offering this relief to help people supporting their extended families.