It was recently announced that United States technology giant Intel will buy the Israeli driverless-technology company Mobileye for $15.3 billion, marking the largest acquisition ever of an Israeli high-tech company. The purchase will result in a massive gain of capital, possibly more than one billion, for the Israeli government via taxes. For years, the Israeli government has taken the stance that crucial initiatives for Israelis living in poverty are neglected due to a lack of finances. It is therefore disheartening to see that even in this instance, where a massive unexpected financial opportunity has arisen from this deal, the benefits will not be felt by those living in poverty. Once again, we see Israel’s poor and vulnerable neglected, despite a real chance to truly invest in their – and thus all of society’s – well being.
Forum for the Struggle Against Poverty’s response to the MobilEye Deal: No allocation of wealth to where it is most needed:
Forum for the Struggle Against Poverty: Kahlon and Netanyahu’s intention to allocate an unplanned enormous profit to the state from the MobileEye deal to reduce taxes ignores the need to invest first in reducing poverty. When there are unplanned profits, it is morally appropriate to invest the money first in helping the most vulnerable — those that do not benefit from tax decreases, as their earnings are not enough to qualify for taxation.
This is not only a moral consideration but also an economic one. If the state would invest in bringing people out of poverty, than it will also need to invest less in welfare, health and so on. This will allow more people to take advantage of their potential and contribute to to the country’s economic growth in an equal matter, as opposed to the situation today. This means a policy that invests in public housing, budget plans for education and welfare, entitlements, progressive differential budgets allocating based on socio-economic needs, and more. Paying less taxes means less well being and education for everyone, especially those living in poverty. It is critical to understand the connection between taxes and welfare, and demand taxes be directed to the right places – places that invest in society for the common good.