"We've entered a period of uncertainty and we must get used to lower growth rates, and the question is what will happen to the fiscal process. My position is unequivocal - taxes must be raised, not temporarily, but permanently," said Prof. Manuel Trajtenberg at the Economix.il conference of the Tel Aviv and Central Chamber of Commerce. "Globes" is the media sponsor of the event.
"To meet the social demands and the simultaneous state and defense demands, it is not possible to lower the growth rate of government spending, which means that the adjustment must come from taxes. Israel's tax burden is not high, which is why taxes should be raised."
The chairman of Trajenberg Committee on social change said, "The social protest succeeded in changing the public dialogue, which had been dominated for too long by political issues which tore the nation apart. These issues, which touch on daily life in Israel, were not part of the public dialogue, but the protest brought them to center stage. This is very positive; for too long Israeli society looked torn.
"The protest's second achievement was to strengthen an entire generation and aroused a thirst for knowledge and education. It highlights concepts that this generation never recognized - the desire to learn and to create a future are incredible. The genie is out of the bottle, and it cannot be put back. Things will not revert to what they were.
"The third achievement is the practical results. The protest put an effective barrier against the trampling by the big companies with monopolistic power. Without the protest, the Committee on Centralization in the Economy would not have yielded a worthwhile report that will make a socioeconomic difference. The same is true for the food committee and the haircut law they are all thanks to the social protest."
Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2012
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