The Cabinet today (Sunday), 4.7.10, by a 20-10 vote, decided to oppose two bills regarding the minimum wage.  The Cabinet also noted Finance Minister Yuval Steinitz’s statement that he intends to table soon the draft 2011-2012 budget law, which will include negative income tax.

Prime Minister Benjamin Netanyahu said that, "I welcome Finance Minister Steinitz’s statement that the next budget will include a negative income tax for the entire country.  This is the proper answer to all citizens who work, but whose wages are low.  This will encourage employment, as opposed to the other proposals, which would increase unemployment. 

This is also the reason why we have received the full support for this outline from professionals in the Prime Minister’s Office and the Finance Ministry, as well as from Bank of Israel Governor Prof. Stanley Fisher and National Economic Council Chairman Prof. Eugene Kandel.