The negative income tax plan would provide 700 shekels monthly to a three-child family with both parents working and earning up to 5,000 shekels. For families in which only one parent works, the government grant would be decreased accordingly. The payment is to be deposited directly into the recipient's bank account.
Hirschsohn also announced increased enforcement of the minimum wage payments, incentives for women, hareidim and Arabs to go to work, increased aid to weaker sectors, more investment in infrastructures, reductions in public transportation rates, and tuition discounts.
Final details have still not been formulated, and the plan will be submitted for government approval only after they have been worked out, apparently next month. Negative income tax is expected to take effect in January 2008, and the obligatory pension plan bill is planned to begin in July of this year.
The Finance Ministry evaluates that the new program, which is expected to cost 1.2 billion shekels ($284 million) a year, will reduce poverty among working families by 20%. It is to be subsidized by a doubling of the tax on company car use by employees.
Hirschsohn also announced increased enforcement of the minimum wage payments, incentives for women, hareidim and Arabs to go to work, increased aid to weaker sectors, more investment in infrastructures, reductions in public transportation rates, and tuition discounts.
Final details have still not been formulated, and the plan will be submitted for government approval only after they have been worked out, apparently next month. Negative income tax is expected to take effect in January 2008, and the obligatory pension plan bill is planned to begin in July of this year.
The Finance Ministry evaluates that the new program, which is expected to cost 1.2 billion shekels ($284 million) a year, will reduce poverty among working families by 20%. It is to be subsidized by a doubling of the tax on company car use by employees.