MK Silvan Shalom: The law will reduce social gaps and the number of poor.
People eligible for the negative income tax will get their first payment on October 15, the Knesset Finance Committee decided today. The committee convened to discuss a major error in the original law. The committee decided that the 400,000 eligible people can file their requests by August 31, instead of August 15.
MK Silvan Shalom (Likud) tabled the initiative. "Today we took a great leap forward in launching the revolution that will add hundreds of shekels a month to low-income earners and to people who do not reach the tax threshold," he said. "This law will bring about a real reduction in social gaps, reduce the number of poor, and give the economy a great boost."
The Finance Committee also approved the salary cap per family at NIS 10,220, above which the negative income tax will not apply. The cap applies to wage-earners aged 23-55 with up to two children, or employees over 55 irrespective of the number of children. The salary cap for working couple with more than three children is NIS 11,240.
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2008
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