Here’s an interesting short news item about potential changes to Israel’s tax system aimed at privatized kibbutzes. In short, the proposal will restrict “collective” tax rates to those few kibbutzim who have maintained their communal economies (what are known as kibbutz shitufi) and/or have no greater than a 25% differential between the best and worst paid members. For the majority of kibbutzim who have undergone “privatization” or decommunalization” (also called shinui or “The Change”), members will need to pay individual income taxes rather than the collective communal tax (sometimes negligible or zero) that has benefitted kibbutzes for decades.
Ha’aretz offers an even more detailed look at the potential consequences here.
