Finance Minister Yuval Steinitz derided Labor Chairwoman Shelly
Yacimovich’s economic policy on Sunday, calling it a “plan of economic
destruction” that would turn Israel into another Spain.
Shelly Yacimovich’s plan, put it in place, and the Israeli economy will
look like Spain’s and even worse,” Steinitz said in an interview with
The Jerusalem Post. “Those naive suggestions will ruin the Israeli
Specifically, Steinitz called out the Labor leader for
proposing an increase in the corporate tax rate to 30 percent. He said
that if multinationals like Intel and Teva are stripped of incentives
which see them pay taxes as low as 6-12% on activities in the periphery,
they will stop investing and “some of them will even leave the country
in two to three years.”
Current corporate tax rate is around 25%, but companies get tax breaks to encourage them to work in the periphery.