Israeli Finance Minister Kahlon announces tax benefits for families

Israeli Finance Minister Moshe Kahlon revealed his plan that will lower taxes for families with children up to age 6 and the daycare subsidy revolution.
Kahlon announces tax benefits Photo Credit: Channel 2 News

Yesterday, Israeli media reported about Israeli Finance Minister Moshe Kahlon’s intention to formulate a plan that will lower daycare costs throughout the country. Today (Tuesday), Kahlon outlined the Net Family program, which will cost a total of 4 million NIS and announced tax benefits for families with children up to age 6. “Today, we are returning a large debt to the Israeli society’s back bone: the working families,” Kahlon said.

“Today, we are strengthening the middle class with action rather than words,” Kahlon added. “Today, we are strengthening the couple that goes to work in the morning and pays taxes, the reservists and the families in Israel. Everyone talks about the middle class. Until today, nothing has been done.

Kahlon stated that there needs to be a change in direction so as to allow for class mobility, which would allow for more families in the lower class to rise to the middle class and not sink lower. “The middle class has been eroded over the past few years and we will change the direction,” said Kahlon.

The Net Family program was formulated in cooperation with local authority heads and Federation of Local Authorities in Israel head Haim Bibas and focuses on two sectors: families with children who do not reach the upper tax bracket and qualify for a work grant and middle class families who exceed the tax threshold. According to the program, a maximum cost will be set for daycare at 930 NIS. Furthermore, the Israeli government will partially subsidize and provide an additional discount of 150-400 NIS per month per family depending on place of residence.

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