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Israel:
Cuts to child allowances, elderly nursing care will be smaller
By
Ruth Sinai
Haaretz,
May 22, 2003
Israel
- Welfare Minister Zevulun Orlev announced Thursday that he and Finance
Minister Benjamin Netanyahu reached an agreement on taxation of child
benefit allowances and cuts to elderly nursing care hours.
In a nighttime meeting between the two it was decided
that elderly people receiving 15 and half weekly hours of nursing care
will continue to get them, and those receiving 10 and a half hours will
have suffer a 45-minute cut instead of a five and half hour cut as was
previously planned.
It was also agreed that child benefit allowances will be
cut by 25 percent instead of by 70 percent in 2003, until a law permitting
the taxation of child benefit recipients in legislated. The two agree that
the two upper percentiles of the population will pay most of the tax on
child benefits, and the lowest five percentiles will not pay any taxes on
child allowances.
Orlev said that due to the modifications in the economic
plan, Netanyahu would have to make other cuts in all government
ministries.
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