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December 6, 2016 / 6 Kislev, 5777

Posts Tagged ‘shekels’

Killing Cash

Tuesday, May 27th, 2014

The Israeli government hopes to put the kabash on cash transactions, starting with a plan that places a ceiling on the amounts starting in fiscal 2015 budget.

The director-general of the Prime Minister’s Office, Harel Locker told journalists in a briefing at the beginning of this week the government plans to limit cash transactions between businesses to NIS 5,000 after a one-year period, with the initial phase to begin at just NIS 7,500. Private citizens will be allowed cash transactions of up to NIS 15,000. But if the legislation goes through, the use of checks will also be restricted.

The initiative is aimed at ending the “black economy” that operates in much of the country, Locker explained, adding that  money laundering has risen over the past two years. He pointed to some three million cash transactions, each of which was more than NIS 5,000, that totaled some NIS 273 billion since 2012, as proof that things have to change.

The government, said Locker, has instead decided to take a leaf from the American notebook and is recommending that banks issue debit cards, rather than the VISA and MasterCard credit cards they currently use.

Most Israelis do not carry out transactions for more than NIS 5,000, Locker contended, thus he said it is expected the new plan will not cause difficulties for most of the population.

Nice and tidy — but that may not be the case: newlyweds who are buying furniture and other necessities for new homes often make their purchases with the cash gifts they receive at their wedding. Those shopping sprees are seldom carried out for less than NIS 10,000 and often involve the use of cash for extra bonus points or discount savings.

Other special events and holiday sales also often involve cash purchases as well – a fact the government seems not to be taking into account. Although Locker said he expects approval of the new law by the end of 2014, it is likely there will be more than a few bumps along the way – probably after his colleagues’ spouses find they find they can no longer go shopping without the government getting in the way.

But mostly, this is about too much government intrusion into the private lives and transactions of its citizens, by a government which wants to, invasively, be able to more easily track its citizens down to the smallest detail.

What’s next? Our biometric data on file with the government?

 

Jewish Press Staff

An Even More Centralized Israel: Cashless and Criminal

Wednesday, September 18th, 2013

Centralization in Israel is a two-headed coin (or perhaps a two-headed monster).

There’s no doubt, that so many bureaucratic activities go much smoother in Israel than they do in America, because we have ID numbers and our cards are inter-linked to everything. Of course, sometimes that doubles the frustration when obvious things need to be manually duplicated over and over for no reason.

On the other hand, that centralization provides no flexibility or a safety net. Having problems with one government office can easily spill over to an unrelated one, since you’re linked together everywhere on record.

Then there is the basic issue of personal privacy and civil liberties.

And now, the Israeli government is attempting to implement two extreme decisions that threaten civil liberties more than ever.

They’re testing a biometric ID system. God forbid that should ever become mandatory.

Right now, even though your personal bio-data is out there with different organizations, there is still some semblance of privacy and protection because of the separation that naturally exists between your health fund, the army, the government, and so on.

But once that goes away, there goes your privacy. You will have no control over your personal information at all, and you’re reliant on the government, which as we know, is not the most effective of protectors of personal data.

The other move is even scarier.

The Israeli government is actually considering trying to find a way to abolish cash.

There was a unanimous cabinet decision to explore how to do that (Hey Naftali Bennett, I didn’t vote for you to lose my civil liberties – remember that come election time).

They want to get rid of cash, and give everyone rechargeable “cash cards” that will allow the government to track every single transaction you do. EVERY. SINGLE. TRANSACTION.

I can’t even begin to describe the civil liberties and privacy violations that implementing this system will create.

And if they actually believe this will get rid of cash, or the black market, they’re even stupider than I thought.

Bitcoin, gold, barter… you name it. Smart (and dumb) people will find their way around it. Not to do illegal transactions, mind you, but simply to protect their privacy away from the government’s snooping eyes.

And then we’ll all be criminals, because of a dangerous legislation which is an intrusive attempt to suck more tax money out of us and spy on us, and not just spy directly, but with data mining too, to study our purchase and transaction behavior, and find every last penny they can suck out of us and understand what we do with it.

I guarantee one thing. If this legislation passes, if the party I voted for, and the ones I didn’t, don’t stop this in its tracks, I will do everything (legal) to make sure those people do not get elected again, and be replaced with people who do care and understand the importance of civil liberties and fear the tyranny of government.

JoeSettler

Netanyahu, Lapid, Punish Families with Children and Bennett is Silent

Tuesday, August 20th, 2013

Only the wealthy won’t feel Binyamin Netanyahu and Yair Lapid’s latest budget cut, which reduces “child allowances” to a pitiful joke.

Where just a few years ago families received as much as NIS 400 per child, the payments for children will fall to NIS 140 (less than $40) per child per month… Arutz 7

Contrary to Lapid’s rantings, it’s not the lazy unemployed sector that will feel it the most.  Those families with almost no income get various welfare subsidies; it’s the working poor, who even with the previous child allowances barely finished the month.

I have no idea how Lapid has come up with his so-called facts:

“We will help needy families and set aside hundreds of millions [of shekels] to make sure no children go hungry, but [the cuts] are a historic move from a culture of allotments to a culture of work.”

Beginning on August 20, parents will receive only 140 shekels per month for each child born after June 1, 2003.

According to Lapid, National Insurance Institute (NII) child allotments perpetuated poverty instead of stopping it. “There is only one thing that allows families to get out of the cycle of poverty – work. The poverty rate in families with two working parents is under 5 percent.” Indy News of Israel

Apparently, Yair Lapid is just as anti-religious and anti-chareidi as his father was.  He just packages himself differently.

For Haredi families, this severe cut in income comes coupled with a severe curtailing of funding for yeshivas and kolelim—by 30 percent this coming year, and by 60 percent the following year. Jewish Press

Lapid’s timing is extra cruel considering the season.  Summer is extremely, unbearably expensive for families with children, no matter what their income.  Children on vacation from school need to be minded, cared for which is expensive.  Summer camp, vacations, babysitters, bathing suits, crafts etc. are difficult for many parents to pay for.  You see many parents taking their children to work, because there’s no alternative especially when they are working at low wages.  Sometimes it costs more to go to work than to stay home.  By reducing child allowances it can become completely financially impossible for both parents to work.

Even before these new child allowance cuts, parents were finding it difficult to pay for school supplies, books and the expenses for the upcoming Jewish Holidays.

Israel doesn’t have much of a parliamentary opposition, but I hope this latest government move galvanizes them to action.

“It injures where it’s supposed to heal. Once again, [Finance Minister Yair] Lapid is taking advantage of and encouraging a mistaken and inciting idea that haredim and Arabs are the only ones who are harmed by budget cuts. First of all, a child is a child is a child.”

According to Yacimovich, the average family will lose NIS 2,000 per year because of the allotment cuts.

The Labor issue took with a statistic Lapid cited – that only five percent of families where both parents work are poor – and said that 65 percent of poor families are working families. She added that there are 870,000 poor children in Israel, more than any other Western country.

“This is an economic and national mistake, evil for its own sake, and a total detachment from people’s regular lives,” Yacimovich wrote.  Jerusalem Post

But my big question concerns to silence from Lapid’s buddy, Naftali Bennett. A large portion of Bennett’s NRP-aka Bayit Yehudi voters will be losing thousands of shekels a year in this government decision.  Ignored by Lapid, Netanyahu and Bennett, who is also in the government coalition, is the fact that many, many families that will be losing thousands of shekels a year are from the dati Le’umi, national religious portion of the population.  They voted on the whole for NRP and Likud.  There’s a good chance they won’t be able to afford to make that mistake again.

Visit Shiloh Musings.

Batya Medad

US Customers Withdraw $4 Billion from Israeli Banks

Tuesday, July 2nd, 2013

Tighter American tax laws have encouraged U.S. citizens to withdraw approximately $2 billion from Israeli banks in less than two years.

“The blow is not just in the drop in assets, but also in the drop in investments. Some of these customers, especially the wealthy ones, use the money to make investments and acquisitions in Israel. There is now little chance that they will make these investments, after they moved the money back to the US,” a banking source told Globes business newspaper.

In some cases, Americans used the money to buy property in Israel, but most of the money was sent overseas.

The Foreign Account Tax Compliance Act (FATCA) at the end of this year will require financial institutions in foreign countries to report bank accounts and assets held for American citizens, who must pay taxes regardless of where they are living. Approximately 100,000  first-generation American citizens live in Israel.

With the absence of a tax advantage by leaving assets in Israel, many Americans began withdrawing their money from local banks

Managed accounts of Americans in Israel are estimated to be valued at billions of shekels.

Jewish Press News Briefs

Printed from: http://www.jewishpress.com/news/breaking-news/us-customers-withdraw-4-billion-from-israeli-banks/2013/07/02/

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