[img]96|left|||no_popup[/img] Dateline Jerusalem — Contrary to popular opinion outside of Israel, National Insurance (similar to Social Security) and Health Insurance contributions are mandatory in most cases, even if someone is unemployed. If you are an Israeli citizen living abroad, you are not necessarily exempt from these payments. Many an Israeli returning to Israel discovers that he/she owes thousands of shekels in addition to penalties. Therefore, mandatory health care is not necessarily free health care.

I also pay monthly for additional health care benefits above and beyond the basic coverage. Although a bargain in relation to U.S. health insurance coverage, prescriptions can be pricey. The combined minimum contribution for National Insurance and basic health insurance is approximately $45/month, even if someone is unemployed. It is not a lot, unless of course you have no income to pay it. However, if you are employed, the contribution comes directly from your paycheck. The amount you pay is figured on a percentage of your earnings as opposed to the $45/month minimum payment. The National Insurance I pay into the system is supposed to be available when I am of retirement age. But I have been hearing rumors that I will not be eligible because of my age when I arrived in Israel. I was too young to be exempt from paying into the system, but too old to benefit from it.

Okay, Let’s Compare

If you think that sales tax is a lot in the States, it is nothing compared to the 16 percent VAT (value-added tax) that is added to everything sold, to hotel rooms, to food, to services rendered, and to just about everything here in Israel. I also am taxed on the apartment I rent since tenants pay the tax, not landlords. I pay a TV tax of about $100 a year. I also pay a customs tax on items sent to me from abroad in addition to a tax on the value of those items.

If I want to buy an apartment, condo, home, I must make a minimum down payment of 40 to 50 percent of the cost of it, and then have life insurance or a guarantor of the mortgage. With the cost of housing, I do not think I will ever be able to afford a place of my own. Again, because of my age, I am not eligible for a 30-year mortgage, only 15 years at the most. But I am not a senior citizen yet!!! When I first came to Israel as a new immigrant four years ago, I was “too old” to go to an absorption center where I could be absorbed into the language and customs of the country.

It is said that two things are inevitable — death and taxes. Since Rosh Hashana (the Jewish New Year) is next week, I wish you all “L'shana tova” for a good year. May you be inscribed and sealed in the Book of Life. Now if only there were something to say about getting rid of taxes…

L'hitraot. Shachar.