Redistribution: Who will receive a larger grant and who will pay taxes on it?

July 20, 2020   

The economic super cabinet received agreements this morning (Monday) on a change in the way the economic grant was distributed, which was announced at the end of the week by Prime Minister Benjamin Netanyahu and Finance Minister Yisrael Katz. His secret: Earn a prestigious degree without preparatory school and without prerequisites • Want one too? The discussion was attended by the Prime Minister, the Minister of Defense, the Minister of Finance, and the Minister of Economy Amir Peretz. According to the agreements between Netanyahu and Gantz, the grant for the disadvantaged will be significantly increased, while at the same time the benefit for the wealthy will be cut. Suffering from underlying medical conditions? You may be entitled to a lot of money from National Insurance. Half a billion shekels out of the six billion will be transferred to populations who will receive an additional 750 shekels to the amount they are already entitled to. These are recipients of a long-term care allowance, recipients of a disability allowance, income support beneficiaries, new immigrants, unemployed people over 67, and elderly recipients of income support. The size of this group is estimated at about 800,000 people. On the other hand, those whose annual income is over 640,000 shekels will be taxed, in a way that the grant will be returned to the state treasury. Civil servants - ministers, MKs, and senior officials in the public sector - with an annual income of more than 360,000 shekels per year (30,000 per month) will also be taxed or will not receive the grant. Economy and Industry Minister Amir Peretz welcomed the agreements: "It is very important that the message be that the weaker sections are at the top of the priority list during this period and that they are the ones who will consume all the money that Yaluy has to offer, and therefore there will be a benefit from restarting the economy.".