Average Israeli income tax rate among lowest in OECD
"There's much talk about the middle class, but the poor are as important," Stanley Fischer said, presenting the Bank of Israel's 2012 report.
Governor of the Bank of Israel Prof. Stanley Fischer today rebuked Minister of Finance Yair Lapid for forgetting the poor in his emphasis on defending the middle class's economic interests. In presenting the Bank of Israel's annual report for 2012 to President Shimon Peres and Prime Minister Benjamin Netanyahu, Fischer said, "The report describes an economy that was in good shape in 2012, but not as good as in previous years. We grew by a fairly robust rate of 3.1%."
Fischer continued, "My foreign colleagues, who would wish such a growth rate, cannot understand our disappointment, but we became used to faster growth." He added that the macroeconomic data were better than the budget, which was 4.2% of GDP, and warned, "Growth was fairly strong, inflation was low, but there is a budget problem, which must be dealt with before it grows bigger."
Fischer said, "The economy has full employment, the unemployment is the lowest in 30 years, but our deficit, which was the result of the government's structural deficit saw an increase in spending commitments, and this must be dealt with. I am pleased to see that the new finance minister is taking the problematic deficit into account and that he understands its severity. There is a lot of talk today about the middle class, but it is just as important to talk about the poor in society and how they can also benefit from economic growth."
Peres said, "The Israeli economy is outstanding, taking the objective conditions into account. One of the difficult objective conditions is that all spending by the Israeli economy are in accordance with the size of the government, but the security issue is an economic challenge in which the size of the government is not the determining factor, but the size of the threats."
Peres added, "These have been impressive years by every measure for the Israeli economy, and I am pleased to have the privilege as President to thank Stanley Fischer on behalf of the State of Israel. When I see you, my faith in people grows. In 1984, when Israel faced an economic crisis with 400% inflation, I was advised by Stanley Fischer, who was in the US at the time. Your advice helped me then, I kept all my promises to tame inflation, which saved the economy. Your contribution to Israel today is also great.
"The faith you find in people, I find in you. I am constantly impressed how one man can help an entire country. I greatly thank you for the common effort."
In presenting the report to Netanyahu, Fischer said, "I wish to present you the Bank of Israel's Annual Report for 2012. This is the last report that I will give you. I could not submit a report to you when you were finance minister, but this is the fifth report I am submitting to you as prime minister. The report describes an Israeli economy which is not in bad shape. There are things which need fixing, but we nonetheless had faster growth than almost any OECD member state."
Netanyahu said, "Thank you for the report. Thank you for the reports and what stands behind them - your important work and our important work, together, to bring the Israeli economy to the heights of Western economies. We see what is happening in Europe, and it did not happen here because of our responsible management of the economy over the past four years. Thanks to this, the Israeli economy has handled the global economic crisis better than most Western countries, and we will continue to manage it in this way.
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
You comment was recieved and soon will be published.
Thank you for posting your comment, which will be reviewed for publication.
Load more comments
Average Israel tax rate has dropped in past 3 years, while rising in most OECD countries.
Gov't opens meat and dairy markets to imports
The government focused on products worth 17% of average Israeli family expenditure.
Israel-Lebanon deadlocked over offshore border
The dispute is delaying publication of an exploration tender for Lebanon's Block 9.
Barclays backs Yair Lapid's policies
"Under Lapid, the government has limited expenditure and increased revenues."
Ya'alon and Lapid clash over defense budget c'tee
The finance minister wants an official from his Yesh Atid party on the Locker Committee.
CPI up 0.3% in March
The index reading is a surprise, as analysts had estimated March inflation at 0.1%.
Lapid seeks NIS 1b for Holocaust survivors
This budget is on top of the NIS 835 million allocated over the next five years.
Abramovich books entire Israeli hotel for Passover
"Daily Mail": Roman Abramovich booked 111 rooms in Mitzpe Ramon's Beresheet Hotel.
Govt set to approve food imports reform
Israel will adopt EU regulations, making imports of non-sensitive foods cheaper.
"You can't teach entrepreneurship"
Angel investor Zohar Gilon relies on his own judgement rather than due diligence when selecting investments.
If Rose Fostanes played basketball
Reforms in regulations for foreign caregivers are welcome, but don't go far enough.
Antitrust Authority disappoints on gas competition
The only new company that will compete against Tamar and Leviathan will own less than 8% of Israel's proven gas reserves.
When innovation means a refrigerator
Jamshyd Godrej believes economic development in India must go hand in hand with environmental and social awareness.
Prof. Zvi Eckstein supports NIS 3.30-3.40/$ floor rate
The former deputy Bank of Israel Governor is the first senior figure from the financial system to advocate a floor rate.
2013 boom year for Israeli high-tech
In the first half of the year, there was a 52% rise in demand for mobile and web developers, and salaries are up as well.
Strong shekel forces Israeli manufacturers abroad
Israeli manufacturers tell "Globes" they are losing money due to the current strength of the shekel.
"Ending QE3 will harm the economy"
Prof. Richard Clarida will tell "Globes" Israel Business Conference that the main risk to the US economy is its political system.
Israel offers favorable tax regime for companies
"Globes" and Baker Tilly Israel accountants found Israel's tax benefits are among the most attractive in the West.
Slowdown will worsen
The vested interests that continue to claim that the economy is improving are deceiving the public, says Eyal Horowitz.
Can the US maintain growth after QE3?
Leading economists will discuss "The US: catch 22 the zero interest rate" at the "Globes" 2013 Israel Business Conference.
"The worst could still be ahead in Europe"
Prof. Charles Wyplosz will discuss Eurozone recovery at the Globes Israel Business Conference on December 8-9.
"Let capital pipelines function to full potential"
Amir Bramly argues that limited investment supply is stifling small and medium Israeli companies.
Budget cuts threaten 10,000 defense industry jobs
Senior executives warn many factories are in danger of closing due to the drying up of defense ministry's orders.
Israel faces water surplus
The Water Authority is considering scaling back production at desalination plants.
Global economic trends are disturbing
World trade is not picking up, and only a handful of countries are recovering strongly - but Israel is among them.
Is recovery around the corner?
At the conference on December 8-9, leading experts will examine the prospects for global recovery in 2014.