Tax Policy

Tax Policy

2020
2020

The Coronavirus crisis has put a spotlight on the weaknesses of the Israeli tax system. Difficulties in receiving grants for tens of thousands of self-employed workers, failures in determining the criteria for the various grants (apparently without clear economic parameters), and even the collapse of the Israel Tax Authority website – are all symptoms of long-term neglect in the Israeli tax system - one of the most important and vital systems for advancing the economy. In this Project, IEP examines the causes of these symptomatic weaknesses and suggests ways to address them, based on a comprehensive literature review and comparative information on OECD and other economies. In this project, the IEP offers a broad view of the main weaknesses in the current tax system - the lack of economic and tax policy, outdated mechanisms, and a local tax system that is not suitable to the global and modern era in which we live. Therefore, the IEP seeks to initiate a broad reform that has been needed for decades, in order to advance a balanced, just and practical tax economic policy. This reform will include recommendations on devising a methodology that would facilitate the planning of Israel’s tax goals, and will provide recommended tax goals for several years to achieve long-term economic objectives. The project will also focus on updating the tax system in accordance with global norms, examining the necessity of various tax benefits and examining tools that can assist in the implementation of a tax policy, such as applying a general income reporting obligation and improving the Israel Tax Authority's digital infrastructure and services.

The Coronavirus crisis has put a spotlight on the weaknesses of the Israeli tax system. Difficulties in receiving grants for tens of thousands of self-employed workers, failures in determining the criteria for the various grants (apparently without clear economic parameters), and even the collapse of the Israel Tax Authority website – are all symptoms of long-term neglect in the Israeli tax system - one of the most important and vital systems for advancing the economy. In this Project, IEP examines the causes of these symptomatic weaknesses and suggests ways to address them, based on a comprehensive literature review and comparative information on OECD and other economies. In this project, the IEP offers a broad view of the main weaknesses in the current tax system - the lack of economic and tax policy, outdated mechanisms, and a local tax system that is not suitable to the global and modern era in which we live. Therefore, the IEP seeks to initiate a broad reform that has been needed for decades, in order to advance a balanced, just and practical tax economic policy. This reform will include recommendations on devising a methodology that would facilitate the planning of Israel’s tax goals, and will provide recommended tax goals for several years to achieve long-term economic objectives. The project will also focus on updating the tax system in accordance with global norms, examining the necessity of various tax benefits and examining tools that can assist in the implementation of a tax policy, such as applying a general income reporting obligation and improving the Israel Tax Authority's digital infrastructure and services.

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