Israeli Minister of Finance Netanyahu says:
If we want to achieve 4-5% growth in the near future, we absolutely cannot increase the rate of expenditure. We will not use additional tax receipts for increasing expenditure, rather we will use them for continued tax reduction. If available, we will direct further receipts toward reducing the deficit. In a process of accelerated growth, we will generate further growth through the reduction of taxes for the people of Israel. The engines for tremendous growth in the economy are tax reductions. This is the strongest way to generate growth. We reduced individuals' taxes, and we reduced value-added tax. However, the VAT rate remains too high and should be reduced. If the rate of growth will surprise us and beat expectations, we will reduce the income tax and corporate taxes.
Go for it!
UPDATE: Note the translator's error: If the rate of growth will surprise us and beat expectations... should be: If the rate of growth surprises us and beats expectations... The former is the way you say it in Hebrew. After living in Israel for a while it begins to sound normal, even to an English speaker.
Posted by David Boxenhorn at June 9, 2004 10:57 AM