There's nothing wrong with profits, but...
Shapira, in a report handed to Knesset Speaker Yuli Edelstein on Tuesday morning, warned of the phenomenon of giant companies and tycoons hording their profits through a maze of loopholes. “It is not reasonable” for this to continue, Shapira said, while “portions of the population are struggling under the burden of taxes and the high cost of living.”
The report said that in general the Tax Authority has done a poor job of enforcing the law for those trying to avoid their taxes, especially in investigating fictitious accounts which violators use to dodge payments.
In other sections of the report that focus on the economy, Shapira reiterated that much of Israel's wealth is in the hands of a monority. One quarter of companies listed in Israel belong to just 25 business groups, and the 10 largest business groups make up 30% of the market, putting it among the highest concentrations in the West. This is not only bad for business, the report said, but poses systemic risks to the economy because of overexposure to credit risk.
There's nothing wrong with making money. But there's something wrong with uneven enforcement, an overly concentrated economy, and loopholes that allow Israel's largest corporations to avoid paying taxes altogether.
Labels: Israeli economy
posted by Carl in Jerusalem @ 1:46 AM
2 Comments:
Profits are not the problem. The problem is these socialists picking and choosing and rewarding their favored ones. These socialists also allow govt to be used to whack competition on behalf of the favored ones, whether through taxes or tax loopholes, regulations, withheld operting licenses...a million ways. It's kind of gross, actually.
It's called crony capitalism. And it doesn't necessarily require socialists. It requires corruption of any persuasion.
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