Labor’s food pyramid tax scheme
If enacted, Shelly Yacimovich’s proposal to reduce the VAT on food would do little to help the poor and much to hurt the state.
It takes a special kind of genius to reinvent the wheel. In clarifying the Labor Party’s conception of “fair economics” recently, Shelly Yacimovich showed she is a candidate. One of her suggestions was to reduce the value-added tax rate on food, thereby bringing down prices for Israel’s disadvantaged populations. She supports this policy, even though it would put a NIS 9.3-million dent in tax revenues.