Government to raise income tax by 1%
Netanyahu, Steinitz discuss new financial measures as way to fill deficit hole ahead of government vote
Prime Minister Benjamin Netanyahu and Finance Minister Yuval Steinitz on Friday discussed new financial measures to be brought to the government's approval on Monday.
It has been tentatively decided to impose a 2% surtax on annual revenues over NIS 800,000 (roughly $196,000) which include salaries, capital gains and rent profits.
It has also been decided to raise the income tax by 1% to those earning more than NIS 8,881 a month (roughly $2,180). However, it has yet to be decided on which tax brackets to apply the measures.
The government is also considering taxing employers at a 0.5%-0.8% rate. Netanyahu has in the past spoken out against taxing employers.
The decision to raise the income tax will take effect starting January 1, 2013.
Meanwhile, Netanyahu and Steinitz are working to garner support for the new measures among the government factions. They have already secured the support of Yisrael Beiteinu.
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