Israelis to be Hit with Tax Hikes, Austerity Measures After Hearing How Israel’s Economy Avoided Global Turndown

The reality of a spate of new taxes; newly-imposed budget reductions and austerity plans have left Israelis – used to hearing the government mantra about how the Jewish state avoided the same fate as nations hard hit by the global economic turndown – angry and confused. According to the government, while the nation’s economy was remaining so strong, its budget deficit doubled to twice what was predicted. In all, the new taxes – including boosting the value added tax from 16% to 17% and adding a percentage to income taxes will cost the average family more than $400 per year. With the exception of the defense, education and welfare ministries, all others will be forced to trim 10% off their budgets. Analysts are seeking to assess the political damage the tax hikes will have on the Netanyahu government which has shown its greatest vulnerability against soci0-economic criticisms.