Israeli Prime Minister Hints at Tax Reductions Following Approval of U.S. Tax Reform
"We cannot fall behind, not when it comes to tax and not when it comes to reduced regulation and bureaucracy," said Israeli Prime Minister Benjamin Netanyahu at a government meeting Sunday
Israeli Prime Minister Benjamin Netanyahu said Israel needs to instate corporate tax reductions in Israel after the U.S. Senate narrowly passed President Donald Trump's federal tax overhaul Saturday. As part of the reform, the Senate has agreed to lower the U.S. corporate tax rate from 35% to 20%.
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"The U.S. has passed a decision to lower taxes," Mr. Netanyahu said at a government meeting Sunday. "They're fighting bureaucracy too. We are in a global world; we cannot fall behind in the tax exemptions we award our business sector, not when it comes to tax and not when it comes to reduced regulation and bureaucracy."
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Israeli Labor Party lawmaker Yossi Yona hurried to criticize Mr. Lapid, saying that he chose to support Israel's business moguls over its middle class and blue-collar workers. "Cutting the corporate tax is a move intended to encourage the creation of new jobs, among other things, but Israel already has very low employment rates and thus needs a different approach," Mr. Yona said.
Mr. Yona added that the correct move would be to invest in infrastructure and professional development. "Lowering the corporate tax will benefit only the big companies while at the same time diminishing the country's budget and thus hindering Israel's ability to develop its infrastructure and professional development.”