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80% of women won't benefit from tax cuts

מאי 25, 2010. Globes: Adrian Filut

"80% of women will not benefit from the tax cuts planned for 2011-16. Only a third of working women benefited from the tax cuts policy of 2003-10," according to a report by the Women's Budget Forum.

The report says that the planned tax cut will reduce the government revenues from income, corporate, and capital market taxes by NIS 13.9 billion. However, the income tax cuts target the top 30% of wage-earners, and that the other 70% will not benefit at all. In monetary terms, only people earning more than NIS 9,400 gross a month will see a tax cut. In terms of population, the tax cut targets men, because there are substantially fewer women in the targeted salary segments than men.

Women account for 42% of eighth decile (a gross salary of NIS 9,400 a month), 35% of the ninth decile (a gross salary of NIS 13,000 a month), and 21% of the tenth decile (a gross salary of NIS 24,000 a month). In contrast, women account for 79% of the bottom decile.

The 2002 tax cut plan, which was implemented in 2003-10 targeted high income-earners, of whom few are women. The Women's Budget Forum says that the tax cut plan widened the income inequality between men and women.

The Women's Budget Forum adds that 66% of salaried women do not meet the income tax threshold, and so will not benefit from any income tax cuts. 36% of salaried women earn low wages - two-thirds of the median wage of NIS 3,869 in 2007 - compared with 15.9% of men.

The Women's Budget Forum says that the tax cuts, by reducing tax revenues, limit the government's ability to finance essential public services, such as health, education, welfare, and childcare, and will mostly harm women as a consequence. Since women are the majority of government employees and consumers of social services, any reduction in these services affects women's employment and earning power, as well as the quality and availability of government services.


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