Monday, December 31, 2012

Shteinitz: No Substantial Tax Hikes In Plan; Labor's Plan is 'Plan of Economic Destruction”

Shelly Yechimovich’s economic plan would make the Israeli economy look like Spain’s and even worse,” Finance Minister Yuval Steinitz told The Jerusalem Post.“Those naive suggestions will ruin the Israeli economy.”
Steinitz criticized Yechimovich for proposing expenditures of around NIS 140 billion, adding that he could not recall any Israeli leader making such extravagant commitments prior to an election.

While he acknowledged that the next government would need to cut around NIS 14B, Shteinitz refused to detail where the cuts would be made. “I can only say that there were similar cases in the past decade, and at the end of the day we found the right way how to make those cuts,” the Finance Minister said.

He did rule out substantial tax hikes next year, although he did not rule out implementing minimul tax increases based on the forecast. “As it seems, we will not have to impose tax hikes, and if we do need to, it will be minimal,” he said. “But... we will have to wait and see what developments there are, what revenues we collect from trapped profits.”

Shteinitz also criticized Yesh Atid leader Yair Lapid, Interior Minister Eli Yishai of Shas, Bayit Yehudi leader Naftali Bennett and Tzipi Livni, head of Hatnu'a Party, for failing to acknowledge the importance of economic growth in social welfare. “They’re talking about how to share the cake, but first you have to bake the cake,” he said.