Meet Prof. Trachtenberg, PM's response to protests
Avital Lahav
Published: 07.08.11, 14:27
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2 Talkbacks for this article
1. Prof. Trachtenberg increase only VAT
Jerome Kohn ,   NZ   (08.08.11)
I am not an economist, but many other countries dealt with this problem by increasing the VAT/GST by 2. - 2.5 point basis. This is the easiest tax to manage and it increases the state revenue ten folds that of income tax or corporate tax. It leaves more money in people's hand and reduces consumption. This extra income from VAT can then go into building affordable housing and to financing the health and education sectors.
2. Economics of Israel's Land
David Chester ,   Petach Tikva, Israel   (08.10.11)
The problem is basically with the Israel Lands Authority whose stubbon refusal to reduce the amount of buerocracy and high cost for land is crippling the small-earning new young families who need to obtain mortgages that they can afford. Manycannot and are having to live as homeless or pay high rents due to the limited competition of available rooms. By taxing land values instead of earnings, purchases and capital gains, the cost of production and residences will drop whilst the demand for goods will rise and with it a reduction in poverty.
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