Skip to comments.[Israeli] Gov't Approves Massive Tax Hikes, Spending Cuts
Posted on 07/30/2012 12:28:23 PM PDT by Eleutheria5
The government on Monday passed a sweeping measure to tighten Israel's belt at a time when the world is facing another global financial crisis.
With a vote of 20 to 9, the Cabinet approved a package of austerity measures designed to raise some NIS 14.15 billion within a year, and reduce the budget deficit by 1.5 percent. Voting against the package were the Independence and Shas parties, as well as Likud Social Services Minister Moshe Kahlon.
The measures include raising taxes, increasing fines and cutting budgets.
Tax Hikes and Fines
Extending the temporary order issued in February 2011 to raise the purchase tax on investment apartments. A 5% tax on properties costing up to NIS 1 million, and 7% on properties costing NIS 3 million and above, will be in effect until the end of 2013.
The so-called Green Tax on sales of vehicles according to their pollution levels is also set to be updated in accordance with Environmental Protection Ministry data.
The purchase tax on cigarettes and cigars was increased last week from 260.6% to 278.6%. the purchase tax on beer went up from NIS 2.18 per liter to NIS 4.19 per liter.
In addition the Value Added Tax (sales tax) will rise by a single percentage point to 17% by this Wednesday.
Fines are to be increased on businesses caught making black market deals.
Starting January 1, 2013, income tax will change for everyone except those in the two lowest income brackets at 10% and 14% -- and in the highest income bracket at 48%.
For those in the fourth-highest monthly income bracket (NIS 8,881 NIS 14,430) taxes will rise from 21% to 22%. Those who make Nis 67,000 per month or more will have their income tax raised by 2%.
(Excerpt) Read more at israelnationalnews.com ...
Israel raises taxes though the roof and they call this belt tightening?
BTW, why is this news here?
With the U.S. state of affairs, who cares?
“Sweeping” measures reduce the deficit by 1.5%. That is pathetic. Give me a spending cut of 25% or 33%. Let’s see what happens. I suspect that you’ll have a recession for a year or perhaps a little more and then the economy will come roaring back as long as you keep spending down.
Tax Breaks For The R-I-I-I-CH!
Where is here? Here to me is Israel. Freep is now an international phenomenon, as is dumb-ass die-hard socialism. I can’t wait ‘til it goes multilingual.
Oh, well enjoy your new taxes...See ya!
You enjoy yours, whoever gets elected.