Government bill · 19th Knesset · published as law 27 January 2014
חוק לצמצום הגירעון ולשינוי נטל המס (תיקוני חקיקה) (תיקון), התשע"ד-2014Law for Deficit Reduction and Change of Tax Burden (legislative amendments) (Amendment), 2014 · automatic translation · suggest a correction
Status: התקבלה בקריאה שלישית
Topics: Welfare and social security*, Health* · * from the Knesset's official law classification
What the sponsors propose
According to the sponsors, examinations conducted by the Ministry of Finance ahead of 2014 revealed greater certainty regarding the scope of budgetary commitments, enabling a reduction in the reserve budget of approximately 450 million new shekels, which makes it possible to meet the deficit ceiling without raising the employer contribution rate to National Insurance as had been planned. It is therefore proposed to postpone by one year, to 1 January 2016, the date for beginning the increase in National Insurance contribution rates collected from employers under Schedule 10 of the National Insurance Law, and to set updated rates for the interim period. It is also proposed to amend the Budget Law for the fiscal years 2013 and 2014 so that the expenditure budget for 2014 will be reduced by 450 million new shekels, in accordance with the change in expected revenues, in order to meet the deficit ceiling and maintain responsible fiscal policy.
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Hebrew original
לדברי המציעים, בדיקות שביצע משרד האוצר לקראת שנת 2014 העלו ודאות גבוהה יותר לגבי היקף המחויבויות התקציביות, המאפשרת הפחתה בתקציב הרזרבה בכ-450 מיליון שקלים חדשים, ומכך ניתן לעמוד בתקרת הגירעון מבלי להעלות את שיעור הפרשות המעסיק לביטוח הלאומי כפי שתוכנן. לפיכך מוצע לדחות בשנה, ליום 1.1.2016, את מועד תחילת העלאת שיעורי דמי הביטוח הלאומי הנגבים ממעסיקים לפי לוח י׳ לחוק הביטוח הלאומי, ולקבוע שיעורים מעודכנים לתקופת הביניים. כן מוצע לתקן את חוק התקציב לשנות הכספים 2013 ו-2014 כך שתקציב ההוצאה לשנת 2014 יופחת ב-450 מיליון שקלים חדשים, בהתאם לשינוי בהכנסות הצפויות, לשם עמידה בתקרת הגירעון ושמירה על מדיניות פיסקלית אחראית.
An automatic summary of the explanatory notes written by the bill's sponsors. These are their arguments, not an official Knesset summary. · The bill on the Knesset website
Readings
- 6 January 2014 · First reading · להעביר את הצעת החוק לוועדה שתקבע ועדת הכנסתהצעת חוק לצמצום הגירעון ולשינוי נטל המס (תיקוני חקיקה) (תיקון), התשע"ד-2014Bill for Deficit Reduction and Change of Tax Burden (legislative amendments) (Amendment), 2014autoBill passed first reading45 for · 15 against
- 20 January 2014 · Third reading · אישור החוקהצעת חוק לצמצום הגירעון ולשינוי נטל המס (תיקוני חקיקה) (תיקון), התשע"ד-2014Bill for Deficit Reduction and Change of Tax Burden (legislative amendments) (Amendment), 2014autoLaw passed28 for · 8 against
What was said in the plenum
The bill seeks to moderate the planned increase in employer contributions to National Insurance for 2014-2016, so that the increase will be more gradual and moderate than what was set in the previous law, with the aim of easing employers' wage costs, particularly for small and medium-sized businesses, following the discovery of budget surpluses. The debate focused mainly on the question of whether the relief would harm the future budget of the National Insurance Institute and on who actually benefits from the relief, alongside general criticism of the Treasury's policy and deficit management over the past year.
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Hebrew original
הצעת החוק מבקשת למתן את ההעלאה המתוכננת של הפרשות המעסיקים לביטוח הלאומי בשנים 2014-2016, כך שהעלייה תהיה הדרגתית ומתונה יותר ממה שנקבע בחוק הקודם, במטרה להקל על עלויות השכר של המעסיקים, ובייחוד עסקים קטנים ובינוניים, בעקבות התבררות עודפים תקציביים. הדיון נסב בעיקר על השאלה האם ההקלה פוגעת בעתיד בתקציב המוסד לביטוח לאומי ועל מי משרתת ההקלה בפועל, לצד ביקורת כוללת על מדיניות האוצר וניהול הגירעון בשנה האחרונה.
Arguments for
- The relief in contributions is intended to lower wage costs and encourage employment and growth in the economy, mainly for small and medium-sized businesses that suffer under this fixed tax burden even when they are operating at a loss.Mickey Levy (Yesh Atid), Nissan Slomiansky (Jewish Home)
- The funding for the relief is not taken from the National Insurance funds themselves but from an across-the-board reduction in the reserve line items of government ministries, so that the Treasury covers the gap.Mickey Levy (Yesh Atid), Nissan Slomiansky (Jewish Home)
- Israel's economic situation is good - the unemployment rate is low, credit rating agencies praise the policy, and the OECD encourages the economic measures that have been taken.Mickey Levy (Yesh Atid)
- The relief should be supported in order to help employers now, and the National Insurance deficit problem should be addressed separately and more thoroughly at a later stage.Nissan Slomiansky (Jewish Home)
Arguments against
- The relief actually harms the depleted National Insurance fund, which finances benefits for people with disabilities, the elderly, the unemployed, and children, and there is no guarantee that the Treasury will cover the gap in the coming years as well.Dov Khenin (Hadash), Moshe Gafni (United Torah Judaism), Reuven Rivlin (Likud Yisrael Beytenu), Uri Maklev (United Torah Judaism), Menachem Eliezer Moses (United Torah Judaism), Yaakov Asher (United Torah Judaism)
- The benefit is broad rather than targeted, and also benefits large businesses, banks and profitable offices that do not need assistance, instead of focusing on small businesses that truly need help.
- Instead of benefiting employers, the funds should be returned to the weaker segments of society and the middle class, who were harmed by the VAT increase, the cut in child allowances, and other measures imposed by the government, and the injustice caused to them should be addressed first.Amnon Cohen (Shas), Yakov Margi (Shas), Moshe Gafni (United Torah Judaism), Uri Maklev (United Torah Judaism), Yaakov Asher (United Torah Judaism)
- The government and the Finance Minister previously presented a public campaign about a deficit and a huge budgetary hole as justification for harsh measures, and now it turns out there was money, which raises questions about the lack of planning, ambiguity, and credibility of economic policy.Basel Ghattas (Balad), Itzik Shmuli (Labor), Yitzhak Cohen (Shas), Yakov Margi (Shas), Moshe Gafni (United Torah Judaism), Yaakov Asher (United Torah Judaism)
- The decision was made as a directive from above, without prior in-depth discussion in the Finance Committee or with professional bodies (such as the National Insurance Institute) regarding the most appropriate way to handle the budget surpluses.Yaakov Asher (United Torah Judaism)
Who spoke (16)
| Member | Faction | Readings | Speeches | In the final vote |
|---|---|---|---|---|
| Mickey Levy | Yesh Atid coalition | First reading | 6 | no record |
| Basel Ghattas | Balad opposition | First reading | 3 | no record |
| Itzik Shmuli | Labor opposition | First reading | 4 | no record |
| Yitzhak Cohen | Shas opposition | First reading | 4 | no record |
| Amnon Cohen | Shas opposition | First reading | 3 | no record |
| Yakov Margi | Shas opposition | First reading | 4 | no record |
| Nissim Zeev | Shas opposition | First reading | 2 | no record |
| Dov Khenin | Hadash opposition | First reading, Third reading | 2 | against |
| Nitzan Horowitz | Meretz opposition | First reading | 1 | no record |
| Moshe Gafni | United Torah Judaism opposition | First reading, Third reading | 8 | against |
| Nissan Slomiansky | Jewish Home coalition | Third reading | 3 | for |
| Reuven Rivlin | Likud Yisrael Beytenu coalition | Third reading | 2 | no record |
| Uri Maklev | United Torah Judaism opposition | Third reading | 1 | against |
| Menachem Eliezer Moses | United Torah Judaism opposition | Third reading | 2 | no record |
| Israel Eichler | United Torah Judaism opposition | Third reading | 2 | against |
| Yaakov Asher | United Torah Judaism opposition | Third reading | 2 | no record |
An automatic summary of the plenum transcripts: the debate on the bill at every reading it was voted on. Arguments are given as the speakers made them; this is not an assessment. The list of speakers comes from the transcript, without a model. Transcripts of the sittings: 1, 2
Reservations to the second reading
No reservations were filed to this bill.
Asked to speak: Reuven Rivlin (Likud Yisrael Beytenu), Gila Gamliel (Likud Yisrael Beytenu), Boaz Toporovsky (Yesh Atid), Shelly Yachimovich (Labor), Isaac Herzog (Labor), Eitan Cabel (Labor), Merav Michaeli (Labor), Binyamin (Fouad) Ben-Eliezer (Labor), Yehiel Hilik Bar (Labor), Omer Barlev (Labor), Stav Shaffir (Labor), Avishay Braverman (Labor), Erel Margalit (Labor), Itzik Shmuli (Labor), Micky Rosenthal (Labor), Michal Biran (Labor), Nachman Shai (Labor), Moshe Mizrahi (Labor), Yakov Litzman (United Torah Judaism), Moshe Gafni (United Torah Judaism), Meir Porush (United Torah Judaism), Uri Maklev (United Torah Judaism), Menachem Eliezer Moses (United Torah Judaism), Israel Eichler (United Torah Judaism), Yaakov Asher (United Torah Judaism), Zehava Galon (Meretz), Ilan Gilon (Meretz), Nitzan Horowitz (Meretz), Michal Rozin (Meretz), Esawi Frej (Meretz), Tamar Zandberg (Meretz), Eliyahu Yishai (Shas), אריה דרעי, Ariel Atias (Shas), Yitzhak Cohen (Shas), Meshulam Nahari (Shas), Amnon Cohen (Shas), Yakov Margi (Shas), David Azoulay (Shas), Yitzhak Vaknin (Shas), Nissim Zeev (Shas), Avraham Michaeli (Shas)
Reservations, sections and other votes (1)
In order. Votes on reservations and individual sections are shown separately from the vote on the bill as a whole.
- 20 January 2014 · Second reading · קריאה שנייההצעת חוק לצמצום הגירעון ולשינוי נטל המס (תיקוני חקיקה) (תיקון), התשע"ד-2014Bill for Deficit Reduction and Change of Tax Burden (legislative amendments) (Amendment), 2014auto28 for · 8 againstVote on sections of the bill