Large Families To Be Hit Hard By Netanyahu Plan

Arutz 7 ^ | March 15, 2003 | staff

[Nachum]

Finance Minister Binyamin Netanyahu has finalized his emergency budget-cutting plan, more or less - and large families living in Yesha (Judea, Samaria, and Gaza), the Negev, and the north are liable to be its hardest-hit victims. The program, outlined in a 150-page document, calls for the end to all income tax breaks in these areas, cuts in child allowances, and more. If a family is supported by a public-sector worker, its income will drop even further, as most such wages will be cut by 8-10%. These families could see their income drop by 600-1,300 shekels each month.

Israel's average gross monthly salary is close to 7,000 shekels, and a family with six children under the age of 18 currently receives 3,339 shekels in child allowances.

Residents of Yesha, for instance, benefited from a 7% discount in their taxes until a few years ago, when it was reduced to 5%; the new plan calls for no discount at all.

Other decrees included in Minister Netanyahu's plan are: the raising of the retirement age from 65 to 67 (four months each year for the next six years); pension payment cuts; fewer tax benefits; and sharp cuts in government office budgets. Thousands of public-sector employees will be laid off, while the remaining public-sector salaries will be cut by 3-5% for lower earners, and over 20% for those earning the highest salaries. Income tax rates will drop slightly. The program calls for a total of 10-11 billion shekels in budget cuts.

The plan was finalized after marathon negotiations between Finance Minister Netanyahu, Defense Minister Sha'ul Mofaz and others regarding the cut in the defense budget. The Finance Ministry originally wanted a cut of 6.3 billion shekels, while Defense offered 1 billion - and they compromised on 3 billion shekels, to be spread over the next three years. Prime Minister Sharon has agreed to the plan, and it will be presented for Cabinet approval next week.

[College Repub]

Muy Intersante

[George W. Bush]

It's about time they started acting like a capitalist nation. We need to decrease their dole while guaranteeing their borders and helping them solve the Pali thing with Jordan.