The Limited Times

Now you can see non-English news...

Opinion | If only we would stop being afraid of raising taxes Israel today

2022-03-13T21:29:33.773Z


In a sensible and focused way, taxes on capital, companies and the upper echelon should rise, in favor of an increase in investment in transport, education and welfare infrastructure, and in favor of reducing disparities


Taxes are perceived by some of us as a necessary evil.

There is also a well-known pose of contempt for taxation, and a claim that in Israel it is excessive.

On the other hand, there is the voice of the world's rich, as well as millionaires from high-tech in Israel, who are calling for capital and income taxes to be raised.

That way, Warren Buffett and others would be able to give something back to a company that supported their economic venture.

The state tax revenue report for 2019-2020, published last month, is a great opportunity to separate truth from fiction. Bottom line: Israel is in 28th place out of 38 OECD countries in the tax rate of GDP. Colombia and Mexico Light for the Gentiles ...

The trend is clear: since 1995, there has been a steep decline in the tax rate in Israel, compared with an increase in developed countries.

The composition of Israeli taxation is unique.

Much less corporate taxes, and much more VAT. Meaning? The rich Israelis enjoy extremely low taxation, while those who do not pay a significant portion of their income on the uniform VAT.

In the Israeli model, the poor subsidize the rich, and we did not talk about the complete absence of inheritance tax, which is customary even in the United States.

The question of whether to massage uniformly or according to wealth and ability, has already been discussed in the Gemara.

Tractate Bava Batra says: "Let Rabbanan, force him to make doors and a bolt for the city, etc.

In theory, the method of taxation is discontinued by means and not as a skull tax.

Taxes have always been a sensitive political issue, ever since the days of "Read my lips" by George W. Bush Sr., who promised, won and ... raised taxes.

The heated political debate has not subsided since.

Israeli politicians have copied American discourse, promising not to raise taxes.

To circumvent these promises, they are deepening indirect taxes, which are particularly detrimental to the poor: VAT, purchase taxes, excise taxes on fuel, and one-time taxation.

When asked by former Norwegian Prime Minister Jans Stolsenberg what he won in the election, he replied: "Thanks to our promise not to cut taxes. Voters were well aware that tax cuts meant cuts in the level of welfare services."

Norway, like other Scandinavian countries, is in the highest places in economic and social prosperity, with low crime levels and particularly high levels of social trust.

Israeli politicians are choosing the American approach, which has brought the world's largest economy to the barbarism of very limited access to medical services, for example.

But raising taxes is not only desirable to expand social services, but also enjoys public support.

Surveys by the Israel Democracy Institute, Physicians for Human Rights and the OECD show that a large majority of Israelis support raising taxes in order to expand education and health services and reduce gaps.

The official data regarding our taxation may mention that there is another way.

Wisely and focused, taxes on capital, companies and the upper echelon need to rise, in favor of an increase in investment in transport, education and welfare infrastructure, on the way to a more democratic society with fewer gaps.

Were we wrong?

Fixed!

If you found an error in the article, we'll be happy for you to share it with us

Source: israelhayom

All news articles on 2022-03-13

You may like

News/Politics 2024-03-13T13:22:47.535Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.