Israel Matzav

Ridiculous: 'Social activist' says Netanyahu will start war to get protesters off the street

This is one of the more ridiculous things I've seen recently. A 'social activist' interviewed by Russia Today suggests that Prime Minister Netanyahu is going to start a war to get the protesters off the street. You've got to be kidding.

Let's go to the videotape (Hat Tip: Don of a New Day).



She seems to have a hard time shutting up to hear the interviewer's questions, doesn't she?

It probably goes without saying that Israel's biggest opportunist is trying to hitch a ride on the protest movement. And yet, Livni was part of the governments that insisted over the last ten years on the Israel Lands Authority selling land to the highest bidder, thus ensuring that housing that was built - particularly in Jerusalem and Tel Aviv - would be purchased by foreigners and not by Israelis who need a place to live. Livni has also been instrumental in forcing a de facto freeze to be implemented in Judea and Samaria, which means that there is no housing for Jews who want to move there. And Livni was part of a government that expelled some 10,000 Jews from their homes in Gaza (our total 'housing shortage' is allegedly 50,000 units), most of whom still have no permanent home six years later.

Yes, there are problems here. But none of them are going to be solved by the government expending massive amounts of money to build more apartments, because that's just going to keep our taxes among the highest in the world. There are things the government could do to help the situation:

First, it could make it easier to commute from outside Jerusalem and Tel Aviv. Getting to work takes way too long, and it actually takes longer by public transport.

Second, owning a car is way too expensive. The government could cut the taxes it takes on gasoline, the taxes it takes on importing cars and their spare parts, and the taxes it takes it takes for employees who are provided with cars by their employers. (of course, it would have to cut spending to offset that tax cut and that's the hardest part). That would make living outside Jerusalem and Tel Aviv more palatable.

Third, it could offer tax incentives (note - I said tax incentives and not subsidies) for the construction of rental housing.

Fourth, it could tax all those people who own apartments here and live abroad and don't rent them out (or even if they do rent them out). I may not have a Knesset member I can call with my complaints, but those people don't even have a political party, so taxing them is cost free, and might even get some of them to sell.

Finally, over the weekend, Mrs. Carl told me I'm being too hard on the protesters. She said that the country is full of working poor (it is) and that the gaps between the middle class and the top are widening. I'm opposed to confiscating people's property and redistributing it. That's a great way to convince your tax base that they're rather live elsewhere. Besides, we saw enough of what happens when there's no incentive to work during the first 40 years or so of this state. But I am in favor of (a) a negative income tax to help the working poor, (b) amending the tax code to limit the deductibility of excess payments to business executives and (c) amending the tax code to make everyone who trades in the stock market pay capital gains tax (right now, if you invest in a company at the start-up stage, you can sell your shares without paying capital gains tax when the company goes public, although that has been cut back over the last 15 years).

Anyone who has connections in the Finance Ministry, please feel free to forward these ideas.

Anyone who thinks that replacing the Likud with Kadima is going to make things any better ought to consider this.

Labels: housing crisis, Israeli economy, Israeli taxes

posted by Carl in Jerusalem @ 10:51 AM