THE DETROIT JEWISH NEWS Israel Treasury Prepares Economic Plan JERUSALEM (JTA) — The treasury is preparing a new economic plan, de- signed to soak some 10 bil- lion pounds annually, Yediot Aharonot's economic correspondent reported Tuesday. The main item in this new anti-inflation measure may be a five percent levy on in- come tax. Other provisions the plan calls for are cuts - in the state budget. Cuts in subsidies for various eco- nomic enterprises, the sale of public land, freezing pub- lic construction, freezing the number of government employees, and linking government finances mortgages to the cost of liv- ing index. According to Yediot the plan is still at its initial stages, and it will probably undergo several changes be- fore it is finally approved. However, its outline was al- ready worked out, and it indicates the policy the treasury would like to pur- Israel, Swazis Sign Accord JERUSALEM (JTA) — Premier Maphevu Dhla- mini of Swaziland and Pre- mier Menahem Begin signed a treaty of coopera- tion providing for stepped- up Israeli technological as- sistance to the southern Af- rican state, one of the few black African countries that did not sever its ties with Israel after the Yom Kippur War. The special effort made here by the government of Israel to fete Dhlamini and his entourage of ministers and officials during their six-day state visit reflected, observers said, 'Israel's appreciation for Swazi- land's independent stance regarding Israel, and per- haps, too, the hope that some of the major black Af- rican states will reconsider their rupture of diplomatic ties with Israel when the peace treaty between Egypt and Israel is signed. At Ben-Gurion Airport, where Begin accompanied Dhlamini to say farewell, the Swazi premier, who is also his country's foreign minister and army com- mander, revealed that Is- rael's Army Chief of Staff Rafael Eitan had given him -a full Israel paratroop-uni- form as a gift, complete with the famous red beret and brown rubber-soled jump boots. • sue in order to curb inflar tion. The early publication of the plan is understood to serve as a trial balloon in order to test public reaction to the various proposals. The most controversial issue is the proposal to impose a levy on income tax. The treasury ex- plains that the idea is not to increase income tax as such, but rather impose a surtax on the existing rates of income tax. In other words, an income tax payment of 1,000 pounds would now carry an additional payment of another 50 pounds. This proposal may face strong criticism from var- ious circles. The previous government announced four years ago an income tax reform which reduced the marginal level of in- come tax payments to a maximum of 60 percent of the gross income. The idea behind the, tax reform was to increase the motivation for paying in- come tax: The critics of the proposal fear that by in- creasing income tax — al- though by a marginal rate — the opposite effect may be reached, and the paying of taxes will increase even further. The main spokes- man of the opponents is re- portedly Yezkel Flomin, de- puty minister of finance. - In reference of the Yediot,. story, Finance Minister Si_mha Ehrlich denied Tuesday that he had any in- tentions to raise direct taxes. He said there were no economic plans ready, and he has not even studied any working papers. Meanwhile, Histadrut and the Manufacturers Association have reached agreement on the payment of up to IL 600 in January salaries as partial compensation to wage-earners for the re- cent sharp rise in the cost of living index. Senior Histadrut official Rehaviah Ofek, who negotiated with the Man- ufacturers Association, made it clear that he and the Manufacturers Associa- tion which represents all employers in the private sector, expect the govern- ment to endorse the agree- ment and apply it to the civil service and government-owned indus- try too. The IL 600 payment will comprise 10 percent of sal- ary up to a ceiling of IL 6,000. Ofek explained that this was a partial, tempbr- ary measure to ease the ef- fects of the galloping infla- tion until the full cost of liv- ing increment becomes due for payment in April. Histadrut had de- manded that the payment be advanced to January following November price increase statistics and December proj- ections which put infla- tion for the calendar year 19'78 at more than 51 per- cent The initial reaction from the government and the employers was negative. But in the course of negotia- tions, said Ofek, a general SANdy RIEdMAN phoTogRAphy consensus emerged that low wage earners ought to be compensated and low ceil- ing (IL 6,000) was arrived at. 25900 Greenfield (at 101/2 mi. Landmark Bldg., 968-0808 CAMOIDS--PORTRAITS-MOVIES-OUTDOOR SETTINGS-ISISTAKI PASSPORT mom Sale Have you always wanted Something Special from David •Wachler St- Sons Internationally famous award winning jewelers? Now is your opportunity. Thru January 20th David Wachler & Sons is offering substantial savings on their entire collection of jewelry a _ s well as restyling_ your own pieces to enhance the stones that mean so much to you . 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