JERUSALEM - Prime Minister Ariel Sharon approved Finance Minister Benjamin Netanyahu’s tax reduction plan, but insisted on including several additional clauses that would help those of limited means.
Included in the update are increased pension payments of NIS 230 (about USD 50) for a couple and 170 NIS for an individual as compared to the original payment of only NIS 180.
Tax breaks for poor
Similarly, the bracket that pays reduced health tax has been broadened by 3.1 percent. From now on, someone will be entitled to health tax reductions if he earns less than NIS 4,170 (close to USD 1,000) a month, as opposed to only NIS 3,480 (About USD 800.)
In addition, the plan now includes steps to reduce unemployment: Those who return to work will get extra tax exemptions, such that they will end up paying NIS 2,136 (about USD 500) less to the government during their first year of employment
Also, NIS 25 million (more than USD 6 million) will be given as a subsidy to those who employ the handicapped.
Helping single moms
The plan also encourages mothers to find work: A three-year plan will increase subsidies for day care centers and lengthen their hours of operation.
This subsidization is expected to cost NIS 150 million (about USD 35 million.)
Sharon also asked Netanyahu to unify the information banks used to monitor the payment of income tax, national health insurance and value-added tax.
The idea is to eliminate redundancy and discrepancies among the various information banks, which allow for fraud and the wasting of taxpayers’ money.
