Exploring the Unintended Psychological Implications of Black Tax

~ Vail ~

Black Tax, in South Africa describes the financial burden of the Black working and middle class who, due to the social desirability of taking care of the extended family, find themselves under financial pressure as their incomes stretch to cover many people. This study explores the psychological impacts of ‘Black Tax’ and argues that it perpetuates the negative connotation imposed on Blackness, creates psychological state of helplessness, and deprives of the positive physical and mental effects of altruism. This study provides suggestions based on the classical and behavioural economics principles to redress the problem.