Committee Chair: Prof. Yoseph Zeira, Department of Economics, Hebrew University of Jerusalem
Committee members: Dr. Momi Dahan, School for Public Policy, Hebrew University of Jerusalem
Mr. Yoram Gabai, Chairman of Pe’elim Securities, Ltd.
Prof. Zvi Hercowitz, Director of the Eitan Berglas School of Economics, Tel Aviv University
Dr. Joseph Djivre, Director of Monetary Affairs in the Research Department, Bank of Israel
Prof. Rafi Melnick, Herzliya Interdisciplinary Center
MK Haim Oron
Dr. Michael Sarel, Director of the Economics and Research Department, Ministry of Finance
Ms. Nira Shamir, Director of the Economics Division, Israel Manufacturers’ Association
Dr. Michel Strawczynski, Deputy Director of the Research Department, Bank of Israel
Prof. Yoseph Tamir, Director-General of Ashalim
Research Assistant: Ms. Michal Abramovich
Below are the main recommendations made by the Macroeconomics Committee:
Reducing unemployment:
- To continue reducing the number of foreign workers, primarily through policy enforcement on employers rather than on the foreign workers themselves.
- To revitalize the peace process in order to continue accelerating growth and reducing unemployment in the economy.
Taxation policies:
- To avoid reducing taxes in the near future in addition to those that have already been decided. Increased tax revenues should be used to reduce the deficit in order to reduce public debt later on.
- Instituting a negative income tax should be considered, in order to reduce the regressive impact of the tax reform.
- To consider, In light of the tax reform and changes in social welfare benefits, instituting mandatory filing of income tax returns.
Benefit payments:
- To differentiate between people who can be integrated into the employment market, and those that cannot. The benefit payments of those in the latter group should not be jeopardized.
- With regard to people who can be placed into jobs, it is impossible to achieve effective integration at work merely by reducing benefits, without also developing services to assist with job placement: vocational training, day care facilities for young children, etc.
- To reconsider increasing unemployment insurance. Cutting back on unemployment insurance did not significantly reduce unemployment, but rather, jeopardized its efficient allocation in the job market.
Moreover:
Recent changes in tax policy and allocations policies are expected to increase the inequality of the economy, which is already quite high. We must consider ways to reduce this inequality, which has both economic and social consequences.