I got called out on the one and only comment to the last entry. What would I do, where I in Bibi's shoes, or at least in his position? Good question, that.
Off the bat I would say that what I would like to see from Bibi is more of a mindset change and less specific policies at this early point in time. That said, some ideas:
- Lower or eliminate duties and excise taxes that are there just to protect the artificially high profits of some local manufacturer. For example, some types of breakfast cereal have 100% to 300% duties imposed on them. Why? What possible purpose could that serve other than to protect a local manufacturer's bad habits and to line the government's pockets with my money.
- I won't debate here whether having a value added tax (VAT) is a good idea or not. Let's say that it is, just for the sake of argument. What peeves me off is that they add VAT on top of duties and taxes. So my breakfast cereal (or my car for that matter) has an initial cost of say, $2, then they add another $2 on duties, and then they add 16% VAT on $4! Does that make sense? Didn't think so.
- Buying or renting an apartment in Tel Aviv is very expensive. No matter what the government does that is not going to change (sorry protesters, live with it). That said, there's quite a bit that we could be doing to alleviate the burden. The big reason that housing is so expensive in Tel Aviv is that Tel Aviv is where life happens in Israel. Business life, entertainment, whathaveyou. Added to that is the fact that getting into Tel Aviv is very difficult. There's little or no effective public transportation and taking a car is inconvenient and expensive, so why would anyone would choose not to live in Tel Aviv?
Here's a radical idea. Invest in infrastructure, say good rail or the sort of 'rail on wheels' that they pioneered in Curitiba, Brazil. By that I mean connect the periphery to the heart in a way that is effective, safe, quick, and inexpensive. I live about eight miles from downtown TA and getting from my door to say, the theater, is nigh-well impossible without using the car. Give me a good alternative and I'll use it. And I'm confident that I speak for millions.
And here's a depressing thought. I'm writing this paragraph almost a week after I wrote all of the above ones. In that time, the Palestinians went to the UN to ask for a state of their own and Bibi got the chance to go there and look all grand and statesman-like during his speech to the general assembly. It's sad comfort (but comfort nevertheless) to see that in this at least we're like every other country. When the head of government (president, chancellor, prime minister) gets into trouble on domestic issues, it's always a good idea (for him) to go abroad and be seen to be taking care of the country's business. Above the fray, as it were. Can't even fault Bibi, the Palestinians served that one up all on their lonesome.
Do I understand correctly from your point numbered 2 above that they are actually including the other duties and taxes in the preliminary figure then used to calculate the VAT? In other words, you're not just paying an additional tax on the cost of the item itself, but you are now required to pay tax (VAT) on the taxes and duties as well?
ReplyDeleteIf that is what you meant, then that is, indeed, not just excessive but utterly outrageous and unjust.
Steve. You got it exactly right. I pay for the product, the duties on the product, and the VAT added to the whole thing.
ReplyDeleteAnd folks don't mutiny over this?? Not that I'm encouraging a rebellion, but I'm amazed that ANY politician supporting such a ludicrous policy could manage to get re-elected, ever.
ReplyDeleteTaxes ON taxes is an abuse of the power structure that victimizes the powerless. Was that actually enacted by some sort of legislative body of elected representatives, or did someone somehow manage to mandate it without a vote?