The news from Israel continues to be dominated by economic protests. The tent city in Tel Aviv, that expanded to other cities, morphed into a large scale demonstration last night in Tel Aviv. The Tel Aviv protests continue at the same time the doctors' strike has continues. These issues are symptoms of the continuing economic inequalities in Israel. These inequalities have continued to increase in a country that has been doing very well, at least in terms of "macro-economics". Despite Israels economic achievements, most Israelis are not enjoying the fruits of that success. The average inflation adjusted salary in Israel has not gone up in the last 10 years.
In Israel, the highest marginal tax rates have gone down considerably in the last few years. Unfortunately, that has resulted in a much more regressive tax system. Over 50% of Israels tax income comes from in-direct taxes, (e. g. VAT luxury taxes on cars etc.) This is inherently regressive. In addition, the income tax rates themselves are problematic. The highest rate is 43%, a rate that starts at income of over about $100,000 a year. There are no state and local income tax in Israel. Therefore, the highest rate is indeed the highest rate. However, even more problematic, is the fact that a 30% tax rate begins when an individual earning reaches $40,000 in annual income. In the United States an individual making that sum of money will be paying little if any taxes, yet the cost of living in Israel is today higher then those in the United States.
In other news, it would seem Israel assassinated another Iranian nuclear scientist yesterday. The method was the same as the last two assassinations, men on motorcycles attacked the scientists as they left their homes. If it was in fact Israel responsible for the assassination, it shows a continued ability to maintain a lethal cell right in the heart of Teheran.
According to a report in Ha'aretz, Israels relationship with France have now gone full circle. In the 1950s and 1960s, until the Six Day War, France was Israels prime arms supplier. Then under the government of President Charles DeGaulle, the French placed an arms embargo on Israel, forcing Israel both to buy weapons from the US and develop its own planes (until the US forced Israel to abandon development of its Lavi fighter.) When the Lavi was abandoned, Israel began to concentrate on development of unmanned planes. Now France is about to become the first foreign customer of the "Eitan", the largest Israeli drone, whose wingspan is as large as a 737. The "Eitan" and can stay aloft over a target for 36 hours.
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Posted by: Moncler Sverige | March 23, 2012 at 07:06 AM