Israel was founded as a socialist country, and the damage from that still exist today. Like the Chinese and communism, the Israelis have edged away from socialism, but they still generally, at least publicly, herald the joys of socialism. Taxes and regulations are insane. Talk to an Israeli involved in business -- off the record, they'll tell you about the corruption as well. State-funded healthcare and free abortion-on-demand are sacred cows in Israel as well. Not to mention, as I'm sure already know, most Israelis are socially extremely leftist.
Suffice to say, if Israel were a state in the US it would be left of California on many, many issues. They've developed a strong technology base and sense of self-preservation, because unlike American lefties they don't have the luxury of playing make-believe when it comes to survival.