"I read the commentary today about the update of the deficit target. I wish to make it clear: taxes will be levied," said Minister of Finance Yuval Steinitz at the Caesarea Forum today, in response to yesterday's decision to raise the 2013 deficit target to 3%.
Steinitz added, "Regrettably, there is no choice but to raise taxes. Even the new deficit target of 3% is challenging, but we intend to meet this challenge. The forecast, together with the mathematics, will require tax measures. I must say this, because credibility is our key tool. We must say this to ourselves and to the people.
"We decided to create an unreasonable deficit that is liable to broadcast a loss of control. After my discussions with the prime minister, we decided on a more realistic deficit target, but there is still a challenge between two needs: to be moderate, but not give in on a tax burden that still leaves us with a safe range of 3% under the Maastricht Treaty. Fiscal credibility is essential, and the new target will help us keep it."
Published by Globes [online], Israel business news - www.globes-online.com - on June 27, 2012
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