A battle broke out in the Knesset Finance Committee yesterday over who should carry the burden of higher taxes as the government moves to close a yawning budget deficit. Doron Cohen, the director general of the Finance Ministry, insisted that that the middle class could absorb the cost of the higher taxes the treasury is planning, but said companies would respond to any tougher tax bill by slowing investment and hiring. "No doubt it is difficult for everyone, but the tax burden for the middle class isn't heavy," Cohen told the committee. "A tax increase of NIS 30 a month for someone earning NIS 21,000 is not high. But if we raise the corporate income tax rate, it will hurt [economic] growth...
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