web analytics
April 1, 2015 / 12 Nisan, 5775
At a Glance
Sections
Sponsored Post


An Estate Tax in Israel?

The Israeli Tax Authority Building

The Israeli Tax Authority Building
Photo Credit: Flash90

Earlier this month, a group of Knesset members from parties across the political spectrum proposed or supported introducing an estate tax in Israel.

That proposal arises essentially out of the country-wide consciousness for “social justice” often equated with “take from the rich and give to the poor.” It is thought that taxing the wealthy will provide significant additional tax to the government coffers and make it possible to reduce taxation of those earning less and provide cheaper housing and cure all ills and social injustices.

America has had an estate tax for close to 75 years and has over the last decade reduced the tax rate from a top rate of 45% to today’s top tax rate of 35% and reduced the estate tax base by increasing the exemption amount from $600,000 up to where it stands today at $5,000,000.

In today’s depressed economic state in the United States combined with a major election year, Congress is considering lowering that exemption level to $3.5 million. Israel is not about to be out done by America (and most western countries) and is considering introducing an estate tax of 5%-12.5% with an exemption for the first 15,000,000NIS (about $4million).

Israel had an estate tax some 30 years ago that was short lived. In fact, it was revoked before it could be implemented. There was such an uproar at the time that the estate tax law did not last a year.

Now, however, the socio-political atmosphere in Israel is such that taxing the rich is fashionable (encouraged by people like Warren Buffet) so much so that this time, there is a strong possibility that an estate tax will be passed and outlive its predecessor.

We will try, God willing, to keep you posted as developments in the area unravel.

About the Author: Shimon Galitzer is a US and Israeli CPA. He has his MBA degree from New York University with a major in Taxation and his JD degree from Columbia Law School in N.Y. In 1988 he established the Israeli CPA firm of Galitzer & Associates. His office can be reached at 02-652-5060.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “An Estate Tax in Israel?”

Comments are closed.

Current Top Story
Faience amulets depicting images of Egyptian gods.
Egyptian Culture Rife in Israel ‘For Years’ After Exodus
Latest Sections Stories
Food-Talk---Eller-logo

While we are all accustomed to the occasional recipe substitutions – swapping milk for creamer, applesauce for oil – gluten-free cooking is a whole different ballgame.

Until the year I decided to put a stop to all my tremors. I realized that if I wanted my family to experience Pesach and its preparations as uplifting and fulfilling, I’d have to relax and loosen up.

David looked up. “Hatzlacha, Dina,” he smiled. “I hope everything goes well.”

In 1756, when the ominous threat of Islamic terror against Jews reached Tunis as well, Friha became one of its tragic victims.

Are we allowed to lie for shalom bayis? It would seem so, but what might be a healthy guideline for when it’s okay and when it’s not?

The connection between what I experienced as a high school teenager and the adult I am today did not come easy to me.

Isn’t therapy about being yourself; aren’t there different ways for people to communicate with each other?

Jack was awarded a blue and gold first-place trophy, appropriately topped off with a golden bee.

Participating in ManiCures during the school day may feel like a break from learning, but the intended message to the students was loud and clear. Learning and chesed come in all forms, and can be fun.

Building campaign chairman Jack Gluck has led the effort over many years.

When using an extension cord always make sure to use the correct rated extension cord.

There was no question that when Mrs. Cohen entered the room to meet the teacher she was hostile from the outset.

More Articles from Shimon Galitzer
The Israeli Tax Authority Building

Is an Estate Tax in Israel in the works? 30 years ago they tried, but it never took off. Will the new socio-political atmosphere make it possible?

Printed from: http://www.jewishpress.com/sections/businessfinance/an-estate-tax-in-israel/2012/02/28/

Scan this QR code to visit this page online: