PM promises free education for ages 3-4 this year

Top income bracket will see tax hike as first stage of Trajtenberg recommendations is implemented.

January 1, 2012 20:43
2 minute read.
PM Netanyahu at cabinet meeting

Netanyahu at cabinet meeting 311. (photo credit: Emile Solomon / Pool / Haaretz)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Prime Minister Binyamin Netanyahu said at the start of the weekly meeting Sunday that the government would implement free education for children aged 3-4 in time for the school year starting September – refuting media reports that he would abandon the measure.

According to the reports, Netanyahu was planning to call off multi-billion shekel cuts to the defense budget, a move that would put at risk the recommendations made by the Trajtenberg Report to introduce free education for children aged 3-4, and after-hours education care for children aged 3-9.

Be the first to know - Join our Facebook page.

Unknown joins Likud leadership race
PM: Don't eulogize Trajtenberg Report yet

Netanyahu said at the cabinet meeting that he would submit a proposal this week on what he believes is the proper balance between security needs, economic needs and social needs.

Taxation reforms recommended by the Trajtenberg Report and approved by the Knesset in December came into effect Sunday, meaning an estimated 280,000 working fathers of children up to age three will now receive monthly tax credits of NIS 430 each month, while around 100,000 working mothers of children up to age five will receive monthly tax credits of NIS 215.

Taxation becomes the first of the Trajtenberg Report’s four chapters to be implemented.

The report, which the government commissioned in response to last summer’s wave of public protests over the cost of living, also recommended reforms in housing, competition and social services.

As part of the changes to direct and indirect taxation, the highest tax rate for monthly income exceeding NIS 40,231 rises from 44 percent to 48%, while a flat 2% high-earners tax will be imposed on all yearly income exceeding NIS 1 million. The company tax rises from 24% to 25% and the capital gains tax rises from 20% to 25%.


Customs duties were removed Sunday on hundreds of items not produced in Israel, such as toys and electronic equipment.

Also Sunday, the cabinet approved roughly NIS 224m.

worth of economic benefits for Sderot and the area adjacent to the Gaza Strip for 2012. Residents will receive a 20% tax credit, and property tax will be discounted by 30% for residences and 24% for businesses, industry and services.

NIS 13m. will be allocated to local authorities for special security-related expenditures, NIS 8m. will be allocated to five psych-social support centers, NIS 6.5m. will be allocated for daycare subsidies and assistance for emergency medical services will increase.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Prime Minister Benjamin Netanyahu
August 31, 2014
Prime minister to Channel 1: I’ll be running again in next election

By Gil Stern Stern HOFFMAN