Shas head Aryeh Deri said this evening on Radio Kol Chai that if Netanyahu met his two non-negotiable conditions, Shas could join the coalition.

The first condition is removing the VAT tax on basic items [editor: such as bread, milk, fruits and vegetables], instead of Lapid’s plan to remove VAT on select apartment sales.

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The second is raising minimum wage to NIS 30/hour.

The implication of the first condition is that Yair Lapid’s party would no longer be part of the coalition.

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2 COMMENTS

  1. [Surak] The first of these two proposals makes sense. The second doesn't.

    In America, we debate the merits of the fair tax. Like the VAT, both are regressive, but both have huge advantages. To make them truly fair, they should not be levied on food or non-alcoholic beverages.

    Raising the minimum wage is a well-known recipe for increasing unemployment, however. The better solution is encouraging economic growth through education, competition (breaking up monopolies), shrinking the bureaucracy, and lower taxes.

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