| ID | 170704 |
| Title Proper | Israeli tax reforms in the 1970s as socially oriented reforms |
| Language | ENG |
| Author | Barak, Yair |
| Summary / Abstract (Note) | The income tax reform in Israel that was introduced in August 1975 bridged two ostensible objectives: the enlargement of levying and the provision of a redistributive mechanism. In other words, it aimed to establish a system that would simultaneously achieve economic efficiency and social justice. The reform was unique since it invented an original Credit Points mechanism that linked together efficiency and distributive justice.
Introducing the Value Added Tax a year later was also justified as an indirect progressive tax that could be related to as a business tax rather than as an expenditure tax, levied directly on customers. One of the main concerns of the leading academic economists during that period was the enlarged socio-economic gap. Hence, the two tax reforms were also justified by pro-social arguments. |
| `In' analytical Note | Israel Affairs Vol. 25, No.5, Oct2019; p 874-889 |
| Journal Source | Israel Affairs Vol: 25 No 5 |
| Key Words | Economists ; Direct taxation ; Military Burden ; VAT ; Tax Burden ; Credit points, direct tax reform, economists, family grants, inequality, Israbluff, military burden, tax burden, social gap, VAT, |