TRUNK SHOW
easier.
The stock market tax — which
would take effect the first of next
year, pending Knesset approval,
which is now in doubt — was the
highlight of a whole range of tax
and foreign currency reforms.
They include slashing or doing
away with high purchase taxes
on a long list of products once
thought to be luxury items, such
as computers, cellular phones and
air conditioners. Also, Israelis
traveling abroad would be al-
lowed to use $7,000 from their
foreign currency accounts, in-
stead of the present $3,000. And
Israelis would be able to invest
much more freely in foreign stock
markets and companies. Like-
wise, foreign capital would have
an easier time flowing into the Is-
raeli economy.
"We voted Rabin in
because of peace.
Now we'll vote him
out because of
money."
— An investor
"All this will make our eco-
nomic life easier, more comfort-
able, more integrated with the
Western world," wrote Sever
Plotzker, probably Israel's most
influential economics commen-
tator, in the Israeli daily Yediot
Aharanot.
The reforms are both populist
and anti-protectionist, left-wing
and right-wing. They attack one
of the worst excesses of Israeli
capitalism — the tax-free stock
exchange — and of Israeli social-
ism — high consumer taxes.
But the key to the package, the
enabler, was the stock market
tax, which previous governments
were afraid to impose. They didn't
want to risk the wrath of big busi-
ness and finance, or risk scaring
stock market players into taking
their money elsewhere — politi-
cally, economically, psychologi-
cally, it was altogether too risky.
Mr. Rabin himself had to be
dragged into the idea by the Fi-
nance Ministry, which convinced
him by arguing, a little specious-
ly, that the reforms also would be
a big inflation-fighter. But nobody
else bought this argument. After
the plan was announced, finance
officials downplayed the reforms'
effect on inflation, stressing in-
stead the "fairness" and "open-
ness" they would bring to the
economy.
The question is would Mr. Ra-
bin have taken such a huge
chance just for fairness and open-
ness? Until now, the govern-
ment's economic policy has been
tepid, faceless. Little has been
done to fight poverty, and hous-
ing prices are rising at nearly
triple the inflation rate. But most
Israelis' standard of living is go-
ing up steadily, and the govern-
ment has pretty much left well
enough alone, saving its energy
and boldness for the peace
process.
Now it has made the boldest of
moves on the economy and got-
ten a lot of grief for it. Both Mr.
Rabin and Mr. Shohat are under
fire for saying one thing and do-
ing another, for changing their
minds and then changing them
again.
The government's popularity
these days rises and falls with the
stock exchange. If, as Mr. Shohat
predicts, the market stabilizes in
a matter of weeks, the govern-
ment will likely be seen as hero-
ic and the economic reforms will
sail through the Knesset. If, how-
ever, the market goes haywire
and stays that way for long, the
government will likely be forced
to withdraw the plan and Mr. Ra-
bin will be seen as an economic
know-nothing, a blunderer.
He would never say so, but he
probably regrets giving his ap-
proval to the reforms. Politically,
they have a steep downside, and
very little upside, except bring-
ing Israel a long-overdue mea-
sure of economic justice, for
nothing but its own sake.
Immigrant Seeks
Pilot Wings
.
Tel Aviv (JTA) — Citing sexual
discrimination, a recent immi-
grant from South Africa has pe-
titioned the High Court of Justice
to force the Israeli air force to al-
low her to join a pilot training
course.
Alice Miller, 22, brought the
petition with the support of the
Association for Civil Rights in Is-
rael after the air force rejected
her application to take the train-
ing course.
She claimed sexual discrimi-
nation alone was behind the re-
jection, since she had obtained
a civilian air pilot license before
emigrating to Israel and has since
earned a degree in aeronautical
engineering from the Technion-
Israel Institute of Technology.
The air force, which was given
45 days to prepare its response
to Ms. Miller's petition, said its
refusal to let her take the course
was based on the Israel Defense
Force's opposition tc -
women to serve in combat areas.
The IDF already employs
women soldiers as instructors for
tanks, artillery and other front-
line equipment, but not in com-
bat.
Ms. Miller claims that the IDF
policy not only prevents her from
becoming a fighter pilot but also
bars her from most senior army
positions, since even posts such
as the chief education officer re-
quire experience in combat units.
Friday,
August 26th
Saturday,
AuQUSt 27th
Come & meet
these designers!
Lansford Dresses and
Unsford Sportswear
A wonderful fall collection of
Sportswear, Dresses, Dressy Doses.
Everythingyou need in one line.
Joan McGillicuddy will be heie to
assist I
St Joval Leisha 'duals with a knit
sportswear collection sized to 4X with
custom sizing available. A wide
variety in color and texture choices
with many surface interests available.
Wine & Cheese
Will be served!
Applegate Square
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Next time you feed your face, think about your heart.
Go easy on your heart and start cutting back on foods that are high in saturated
fat and cholesterol. The change'll do you good.
American Heart Association
WE'RE FIGHTING FOR YOUR LIFE
15