Subscribe to Print Edition | Thu., June 12, 2008 Sivan 9, 5768 | | Israel Time: 03:45 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Peres Conference Business Real Estate Easy Start Travel Week's End Anglo File

Finance Minister Roni Bar-On. (Daniel Bar-On / Jini) Last update - 23:06 11/06/2008 Histadrut: We'll strike unless Treasury backtracks on tax cuts By Tal Levy and Ido Salomon, Haaretz Correspondents Tags: Tax Authority  Histadrut labor federation chairman Ofer Eini said on Wednesday that unless the Treasury backtracks on its plan to cut income tax and company taxes in the next two weeks the union would declare a strike. At a press conference held with Tax Authority officials earlier Wednesday, Finance Minister Roni Bar-On announced the tax reform, to be carried out over the next several years. Income tax for people who earn between NIS 4,390 and NIS 7,810 a month will stand at 11 percent instead of the current 16 percent. Those who earn between NIS 7,810 and NIS 11,720 will pay 17 percent instead of 26 percent, and whoever earns between NIS 11,720 and NIS 16,480 will pay an income tax of 25 percent instead of 33 percent. Advertisement Additionally, taxes paid by companies will drop from 27 percent to 20 percent by 2014. The top tenth percentile will also benefit from the reform. The income tax ceiling is currently at 47 percent, and will fall to 46 percent in 2009. By 2015, the income tax will not exceed a maximum of 42 percent. All of the tax decreases will go into effect gradually by the year 2015. In order to finance the tax cuts, the state will annul the tax exemption currently applied to employees' saving funds meaning allocations to such a savings fund, which matures after six years, will be taxed. The exemption on the health tax and the National Insurance Institute tax will remain in effect. Bar-On said on Tuesday that the government has an "accumulation of commitments without a budgetary source because of obligations that other governments took on in the last years." In the past, the finance minister has called on the government to refrain from "irresponsible" and "populist" legislation. Eini, for his part, accused the Treasury of taking unilateral measures. "In January 2008, we, the Histadrut and the employers' association, warned the Finance Minister of a looming economic crisis," he said. "Despite persistent appeals to hold multilateral discussions, the Treasury remained idle." Eini also said that he welcomes "the tax cuts for companies and individuals, although it's too late. Nevertheless, the Finance Minister said he would not honor previous accords and collective agreements, which is an abrupt change of our negotiation policy." "A strike, for us, is just means to an end," Eini concluded. "The Finance Minister has decided to pull us back to the era of unilateral measures, and he will have to provide the public with explanations." While 2008 is not an official election year, the corruption probe against Prime Minister Ehud Olmert has led to growing calls to move up the 2010 general elections. The fact that local authorities will also be holding elections this year has led to speculation that the tax cuts have been timed to coincide with elections. At the end of April, Bar-On said in a cabinet meeting that "the surplus of budgetary commitments for 2009 is very significant" and that Israel can "expect a complex and difficult process of national prioritization, including the concession of some of the budgetary additions that governments of Israel have decided on in the present and the past, and the rejection of some of the government programs of the future." Related articles: Budgetary discipline Bar-On to trim 2009 budget by NIS 6 billion Record budget as Finance Ministry warns of economic decline Bookmark to del.icio.us   Knowing when to fold Ehud Olmert tells Kadima to begin preparations for party primaries. Time for vegetarianism? Kosher meat prices in the U.S. are likely to soar after a raid on an Iowa plant.   1.   And those ultra orthadox that live off our tax money 14:54  |  SJ 11/06/08   2.   Let the poor pay for the Occupation 15:41  |  Mark Marshall 11/06/08   3.   TAX CUTS IN 2015,... 16:09  |  Robert 11/06/08   4.   So the poor will get poorer and the rich richer 20:04  |  L A 11/06/08   5.   COMMENDABLE LOGIC IN SJ`S DISSERTATION 20:48  |  SPTZ 11/06/08   6.   Histadrut off the wall 21:08  |  miche Norman 11/06/08   7.   histadrut power must be crushed 21:16  |  zionist forever 11/06/08   8.   Election ploy 22:33  |  Esther 11/06/08   9.   Histadrut and government 23:09  |  NR 11/06/08   10.   Don`t Those Fools Understand That Cutting Taxes Boosts EVERYONE 01:13  |  b`Galil 12/06/08

Read & React Palestinians: IDF kills girl, gunman in Gaza; Negev man wounded by mortar Responses: 180 Editorial: No good reason for broad IDF Gaza operation Responses: 77 Haniyeh aide: Hamas expects gesture in exchange for Shalit letter Responses: 80 TV: IDF reservists complain their service consists of babysitting young settlers Responses: 32 Alexander Yakobson: Religious rites not needed to join the Jewish people Responses: 59 Rosner's Domain The UN's Complicity With Evil Lieberman for VP? Only 18% want it (WTR) Threatening Iran is wrong (WTR) Poll: Philip Roth, Victor Frankl or Leon Uris? On a par with the policies of President Bush More Headlines 02:24 Israel fears Hezbollah may try to 'settle score' over Mughniyeh 23:32 Top crime attorney dies in Tel Aviv car bombing 21:13 Olmert tells Kadima: Get ready for party primaries 22:40 EU diplomats: We're not ready for major upgrade of Israel ties 02:00 Gadaffi: We fear Israel may kill Barack Obama just as it did JFK 22:57 Report: Government panel to probe Ramon sex crime inquiry 00:04 Glasgow Rangers star denies interest in joining Maccabi T.A. 20:57 Palestinians: IDF kills 4 in Gaza; Negev man wounded by mortar 23:06 Histadrut: We'll strike unless Treasury backtracks on tax cuts 22:37 Border policeman lightly hurt at anti-fence rally 02:58 NGOs cutting back projects, dismissing staff as dollar spirals downward 02:53 Vilnai: Joseph's Tomb should be on agenda with Palestinians 02:36 Mayor of Qassam-battled Sderot questioned by police on graft suspicions Previous Editions Select Day 11 jun 10 jun 09 jun 08 jun 06 jun 05 jun 04 jun 03 jun 02 jun 01 jun 30 may 29 may

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