The negative income tax will only be paid for 2009 to residents in areas where the Wisconsin plan operates: Jerusalem, the Ashkelon-Sderot area, Nazareth and Upper Nazareth, and Hadera, stipulates a buried clause in the 2009 economics arrangements bill. The clause states, "Amend the Negative Income Tax Law to determine that in 2010 tax year, the grant will be paid for actual months of work in the 2009 tax year only to residents in the adoption area for months that they were residents in the adoption area."
This effectively means cancelling the nationwide implementation of the negative income tax indefinitely, in breach of the cabinet decision, the instructions of the prime minister, and the staff work on the negative income tax two years ago.
MK Silvan Shalom (Likud) said, "This is an unparalleled scandal. It's robbery in broad daylight that attempts to render the law meaningless." He initiated the law, and was unaware of the proposed amendment.
The Ministry of Finance said in response, regarding the connection between the Wisconsin Plan and the negative income tax, "This condition exists."
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008