Lowering taxes: A path to community empowerment

As a 25-year-old owner of a dancewear business, I understand first hand the financial and emotional toll that high taxes impose on small business owners in Israel. The passion and dedication I pour into my business are often overshadowed by the overwhelming tax obligations. Israel’s tax burden on businesses is among the highest globally, and this needs to change.

Our nation’s tax system is a complex maze of direct and indirect taxes. With a corporate tax rate of 23%, significantly higher than the OECD average of 21.5%, many of us feel the squeeze. Every shekel I earn is crucial for reinvesting in my business, from developing new products to enhancing customer service. Instead, a substantial portion of my earnings goes straight to the tax authorities. This stifling financial strain curtails my ability to innovate and expand.

But it’s not just about business growth. Lowering taxes would enable us to contribute more directly to our communities. Imagine if, instead of funneling our money into taxes, we could invest it in local NGOs. These organizations often operate more efficiently and with greater flexibility than governmental bodies, addressing social issues such as education, healthcare, and environmental conservation more effectively.

Consider this: if the government lowered our taxes, businesses like mine could support NGOs in meaningful ways. Donations would empower these organizations to experiment with innovative solutions, driven by the accountability and efficiency that come from being directly answerable to donors. This would foster a more effective use of resources and create a direct link between business success and community well-being.

I urge the government to rethink its approach. Tax reforms that reduce the financial burden on businesses and establish incentives for contributions to NGOs could transform our economic landscape. Offering tax deductions or credits for charitable donations would not only alleviate the strain on business owners but also promote a culture of corporate responsibility and community involvement.

The excessive tax burden on Israeli businesses is more than an economic issue; it is a social one. By advocating for lower taxes and a realignment of funding toward NGOs, we can create a more vibrant economic landscape and a healthier society. It’s time for our policymakers to consider these changes seriously, for the benefit of our businesses and the communities they have the potential to support.

As a young entrepreneur, I am passionate about my business and my community. Lowering taxes would not only help businesses like mine thrive but also enable us to contribute to the social fabric of our nation. Let’s work together to create a system that supports both economic growth and societal well-being.