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Tag: Budget 2009

Priming the (gas) pump

Gasoline Pump
Aren’t those Israeli finance ministry people clever? It was just the other day when Yuval Steinitz, Bibi Netanyahu’s Finance Minister, was expressing he regrets over the decision to charge VAT on fruits and vegetable sold in open air and similar markets. The uproar this decision created resulted in the government deciding to back off from their unpopular decision, as trying to collect these revenues might prove to be a bit dangerous, to say the least. Besides, the poor folk have been battered enough, especially pensioners and other weaker elements of our society.

But wait – there’s better ways to fleece the public, and bless our government to come up with just the perfect to get extra money from everybody, both rich and poor alike. And that better way it to hike up the taxes on gasoline, as this can be collected automatically at source and won’t affect many of the poor folk as long as they don’t have car.
Raising the price of fuel by 30 Agorot a liter, about 7.33 US cents, will not only raise a nice amount of needed revenues but not cause a revolution either. When pepole don’t have a choice, they pay what they have to since they don’t have much of a choice otherwise. The new levy will raise the price on 95 octane unleaded to NS 5.79 per liter at self-service stations.
The new gasoline tariff will go along with other austerity measures, including increasing VAT (on all other goods and services) to 16.5%, increasing contribution amounts required for National Insurance, municipal rates increases, and other means. Since most really poor folk don’t own a car, they won’t get stung with higher gas prices. Just the rest of us will. Most likely employees driving lease cars will have to pay a bit more for this privilege – too bad! Most likely a “beer and booze tax is also in the works too. That’s also something the public has no control over. It’s either that or take off child allowances even more. And that will make government coalition partners (like Shas) head for the hills.

Bibi Sinks Deeper in The Mud

Binyamin NetanyahuThe rock group Depeche Mode has come and gone, and so has the Lag B’Omer wiener roast and marshmallow toast. But P.M. Bibi Netanyahu and his so-called Chancellor of the Exchequer, Yuval Steinitz, continue to sink in the financial quagmire, they seem to have created by trying to be clever with the Israeli public.

As their popularity reaches the point where they can both crawl under a snake’s belly, these two guys, especially the one supposedly in charge of the country’s purse, seem to find themselves literally pinned against the wall, from the side of public opinion.
To make matters even more pressing for Bibi and Co., the Finance Ministry’s budget planner, Ram Belinkov, announced his resignation today. Are the “rats” beginning to leave the sinking ship?

Meanwhile, talk of more firings from work places will mean even more people applying for unemployment benefits – if they are even entitled to receive them.

The more affluent people will have to pay more, and those earning NS 80,000 or more per month will have to pay a higher amount of National Insurance contribution. Purchasers of luxury cars, especially gasoline guzzling SUV’s, will have to pay higher purchase taxes. But these changes won’t affect the poorer classes, who will have to pay higher prices for fruits and veggies in open air markets, due to the government asking for VAT to be paid now on all fruit and vegetable purchases. VAT will be increased one percentage point to 16.5% which will apply to all purchases, from basic commodities to cars and new real estate sales.

How the new rate of VAT , and the requirement for it being paid for stuff bought in the shuk (open air market) is going over with the people manning the stalls there, a visit by a Channel 2 news reporter got it “straight from the horse’s mouth”. One vendor, who has had a stall in the Menahem Yehuda market in Jerusalem for years, summed it up this way: “I am a loyal Likud-nick – always have been. But if these changes go into affect, then all them (the Likud hierarchy) including Ruby Rivlin (the Knesset Speaker) are not welcome here”.

And we’re sure those shuk guys mean business!

Security or Society?

Let \'em eat cake

Let ’em eat cake.

First things first… as you’ve probably noticed, we’ve changed our theme at One Jerusalem. What do you think?

Now for a far more serious topic… The Ministry of Finance proposed two distinctively different budget plans for 2009. The first aims to cut fat from the Ministry of Defense, while the second aims to save money by cutting social and welfare expenses. “Now”, says the Minister of Finance, “choose between the two.”

When leveling security vs. society, the former always wins. It’s a nasty trick. The Ministry of Finance is crafting a worldview where you have to have hundreds of families starving and being denied medical care because we need a strong military. But this whole concept is ridiculous. Why can’t we have a strong society and a strong military?! Why is it all-or-nothing? We could cut a bit here, a bit there, it doesn’t have to be a clear choice between two fatal alternatives.

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