The government approved Trajtenberg recommendations, which basically amount to raising taxes for upper-middle class and capital gain tax. Just as the world’s recession is going to hit Israel, the government thus curtails investment resources and encourages entrepreneurs to hide their income overseas.

To sweeten the pill, the government reduced their social security payments, which implies lower allocations for healthcare at the time when doctors keep striking over salaries.

The promises of reducing customs duties remain uncertain.

Overall, the plan is to increase government spending rather than cutting taxes.

Instead, a proper plan would call for massive deregulation of every aspect of the economy but the capital markets.

Samson Blinded

 

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