The government on Wednesday authorized for legislation Finance Minister Moshe Kahlon’s “Family Net,” which promises significant tax breaks and subsidies for working families and middle-class Israelis. Among the most significant aspect of the plan is the increase of tax credits for families with children five years of age and under. The change to the credits for these families will provide working parents NIS 215 more per month on average, resulting in an increase in income of thousands of shekels a year for working parents with small children at home.
“We committed ourselves to bringing this plan about, and we worked hard to bring it about, in our efforts to help the middle class and working families,” Kahlon told ministers at the meeting Wednesday. In remarks reported by Israel Radio, Kahlon said that with the implementation of the plan, Israelis would be able to keep more of their salaries to help pay for their day to day needs.
“The result will be an increase of thousands of shekels a year in the income of families, money that will help further stimulate the economy, as families will spend it on their needs. Israelis have waited long enough to get what they deserve from the state,” Kahlon added.
Other parts of the plan are still being worked on, but Kahlon said that they will all be approved by the government when they are presented. Among the other highlights of the overall plan: Additional tax discounts for families where two parents work; government subsidies for after-school programs, with a cap of NIS 930 per month on costs for the programs; transfer payments for individuals who earn NIS 5,000 or less; and cancellation of import duties on children’s clothing and shoes.