Shomron Center for Economic Policy Research

In Search for an efficient Institutions

Tax reforms in Israel: fine-tuning which tunes nothing

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Gradual economic reforms rarely (if ever) had proven to be successful. Tax reforms in Israel since 1990-ties just presents one more case to add to the failures’ collection.

Almost all tax reforms in Israel since 1996 were ‘gradual’, ‘fine-tuning-style’, and eventually had zero impact on the economic growth rate. The only exemption – corporate tax rate [significant] lowering was caused by the pressure of international competition. Some data and references are provided to the reader to illustrate this bleak and unimpressive picture.

The short draft paper ‘Israel Tax Policies since 2009 and Economic Growth‘ has just been uploaded at SSRN. Criticism is welcomed.

 

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