Netanyahu has revealed his plan for economic salvation. Among other silly measures, the plan expands negative income tax, a reimbursement of previously paid taxes for businesses with losses. Besides the sheer immorality of it (didn’t the businesses enjoy profits?), the negative tax helps essentially failed businesses.
Tax cuts will not start for another two years, though the overtaxed economy urgently needs them now, or we risk cutting government expenses.
$3 billion in guarantees are offered for business loans. Months ago Netanyahu lashed out at Olmert for aiding his friends’ businesses. Now we’re to believe that Bibi’s government would disburse guarantees based on some honest criteria.
