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NEWS
Tax Reform Results in Growing Gap Between High-Income and
Low-Income Earners
by G. Kleiman
Vice Prime Minister Shimon Peres and Minister Yitzhak Herzog
met with National Insurance Institute Director Yigal Ben
Shalom to discuss the plan for the battle against poverty.
National Insurance (Bituach Leumi) proposes
introducing a negative income tax and granting parents of
children up to age five a parenting allowance to be funded
from the reductions in allowances from previous budget cuts.
Peres and Herzog announced that they support these
proposals.
During the meeting Ben Shalom said that as a result of the
tax reform instituted by former Finance Minister Binyamin
Netanyahu the income for the top three-tenths rose by NIS 9
billion, while the income for the bottom three-tenths dropped
by approximately NIS 1 billion.
"Continued [spending] waste in the Territories is a millstone
hanging around the necks of the weaker classes," Peres said
at the end of the meeting. "Rather than investing in the
Territories we should be investing in people."
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