'Housing shortage could hurt Netanyahu's popularity'

The Knesset's Finance Committee has demanded revisions to be made to the Trajtenberg Committee's tax recommendations, stressing its commitment to relieving the tax burden on the middle class.

The MKs gathered for a special session Thursday to discuss the government law proposal to implement the tax benefits outlined in the social team's blueprint for socioeconomic change.

The government has circulated the proposed bill, which was approved by the Cabinet earlier this week, among government ministries on Thursday, requesting their input on the amendment.

'Social protest may intensify'

MK Moshe Gafni, who chairs the committee, protested the fact that the bill does not address the housing shortage, demanding the government to include tax benefits for mortgage holders in the bill.

"If no real solution to the shortage is offered, the social protest will intensify," Gafni said, emphasizing that Prime Minister Benjamin Netanyahu's political future depends on the public's approval.

"In the current state of uncertainty in the Middle East, unexpected elections could be held, and his popularity could plummet quickly," Gafni said. "His fate depends on his response to the protest."

The Finance Committee's revisions include a significant reduction in the tax brackets for those whose monthly income is under NIS 14,000 (roughly $3,900) and the elimination of the tax hike on capital gains for retirees whose income depends on their pension fund and equity investments. Moreover, the MKs required the negative income tax grants to be expanded to apply to women, not just eligible men.

Gafni said urged the finance and justice ministries to submit their responses to the list of revisions by the beginning of next week. He stressed that the Finance Committee will not back down from its demand to cut taxes for the middle class.

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