Minister of Finance Yair Lapid has again made clear that Israelis will not be required to pay more taxes following Operation Protective Edge. He even went so far as to stake his political future on the issue, "I won't stay in a government that again puts its hands into the pockets of Israeli citizens when there is no genuine need."
Lapid told Channel 2, "There is no logic to again raising taxes for Israeli citizens. I put together the previous budget, which was a very difficult budget. It wasn't done because I enjoyed doing it. It was done so that if something like Operation Protective Edge was to happen then the economy would be strong, and it would help us get through it."
He reiterated, "I am Minister of Finance. I know the numbers and there is no reason and no need to take money once again from the pockets of Israelis.
On the subject of Bank of Israel Governor Dr. Karnit Flug's insistence that taxes should be raised, he said, "It's good that the Governor warns us. But I say that if there is anything that will harm the soundness of Israel's economy it would be if we increased taxes."
Speaking about the state budget he explained that the Defense Ministry does need more money to solve the problem of Hamas's tunnels and rockets but he said, "Money is also needed for education, for health and also for welfare, and my job is to worry that the division will be carried out fairly."
Lapid continued, "The Prime Minister says that defense is very important and I agree with him. But health is also important and I'm sure the Prime Minister agrees with that. There is a professional and comprehensive debate being conducted and we are looking at Israel's defense needs. It's not that one side is throwing out a number and the other side is throwing out another number and they meet in the middle."
Published by Globes [online], Israel business news - www.globes-online.com - on September 4, 2014
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