The NII
18/October/2007

A serious proposed change in the bituah leumi law which has been included in the annual undemocratic Israeli tradition called "hok hahesderim" proposes to charge all unearned income above a very low threshold with national insurance, thus completing the abolition of national insurance and the establishment of an undeclared "second income tax" to be collected by an redundant second collection apparatus. Until now the rules have been most odd, causing strange inconsistencies (some of which I have no problem in declaring that I have taken advantage of) but they have now "thrown the baby out with the bathwater" by totally eliminating any attempt at linking these payments to earned income, while at the same time failing to reduce the percentage rates collected. While the digest I read did not mention it, they clearly intend cancelling the btl tax "holiday" on low self employed income received by a salary earner. I do not know what they intend doing to a married woman who has unearned income under circumstances which were until now outside the net but I suspect they intend collecting another bonanza there.

And on the subject of married women, years back they said they would start collecting nis 86 per month "health tax" from housewives but it never happened. They're trying again, even the sum is unchanged.

If you don't like this, now is the time to start lobbying somebody. Activities against this sort of thing have a good track record of success.

You heard it first from Yossi Kir-on

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