Israeli corporate tax policy: A pro-growth system at risk

Alex Brill ()

AEI Economic Perspectives, 2013

Abstract: Globally, corporate tax rates have been declining for over two decades (except in the United States), and one consequence has been an increase in investment, a boost in workers' wages, and little or no loss of tax revenue. But a troubling tax policy trend is emerging in Israel, where once-aggressive efforts toward a competitive corporate tax are being reversed. Proposals to raise the headline Israeli corporate tax rate for a second year and, in particular, to raise taxes on highly mobile, export-oriented production represent the wrong approach and will harm economic prosperity. The consequences of this reversal in a small and open economy like Israel's are potentially dire and could extend to investors in the Israeli economy from the United States and other foreign countries.

Keywords: israel; corporate taxes; AEI Economic Perspectives; foreign direct investment; Policy Papers (search for similar items in EconPapers)
JEL-codes: H (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:aei:journl:y:2013:id:6327

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