Prime Minister Sharon and Finance Minister Silvan Shalom began presenting their proposed economic cuts today to coalition party leaders. The plan aims to free up several billion shekels to be used to pay the heavy financial costs of the warfare against PA terrorism. Sharon and Shalom met first with Labor party head Binyamin Ben-Eliezer, and continued with MK Yaakov Litzman (United Torah Judaism), head of the Knesset Finance Committee. Sharon and Shalom were to hold a press conference about the proposals later today.
Reports are that the plan includes hiking Value Added Tax on all products and services to 18% from its current 17%; a steep jump in taxes on cigarettes and gas; cuts in social payments (child allowances, unemployment, and possibly even payments to the elderly); and an increase in health and national insurance payments for the high-income classes. Stocks and savings may also be taxed, but this will be delayed at least until the Rabinowitz Commission completes its study of the matter. The Tel Aviv Stock Exchange (TASE) reacted nervously to the plan, and the dollar jumped this afternoon to 4.864 shekels.
Prof. Ya\'ir Rabinowitz, who heads the above committee, confirmed today that it will take at least another month before his team publicizes its results, which will be then reviewed and discussed for many more weeks after that. Histadrut Labor Union chief Amir Peretz said today that all the attention being paid to possible stock taxation is just a \"psychological trick to distract the public from the sharp economic blows being dealt the underprivileged classes.\"
Reports are that the plan includes hiking Value Added Tax on all products and services to 18% from its current 17%; a steep jump in taxes on cigarettes and gas; cuts in social payments (child allowances, unemployment, and possibly even payments to the elderly); and an increase in health and national insurance payments for the high-income classes. Stocks and savings may also be taxed, but this will be delayed at least until the Rabinowitz Commission completes its study of the matter. The Tel Aviv Stock Exchange (TASE) reacted nervously to the plan, and the dollar jumped this afternoon to 4.864 shekels.
Prof. Ya\'ir Rabinowitz, who heads the above committee, confirmed today that it will take at least another month before his team publicizes its results, which will be then reviewed and discussed for many more weeks after that. Histadrut Labor Union chief Amir Peretz said today that all the attention being paid to possible stock taxation is just a \"psychological trick to distract the public from the sharp economic blows being dealt the underprivileged classes.\"