Israel's Energy Tax Increase

The news that Israel was to raise its tax on energy extraction, to 52-62%, from the current 33%, following the discovery of large natural gas reserves was flagged here back in August. Now the New York Times reports that the Israeli cabinet "voted overwhelmingly" yesterday to nearly double the tax. The Israeli business newspaper Globes quotes one member of the Israeli parliament as explaining that one gas field is not included because of "reservations in principle about changing the rules set by the government itself, after money was invested in the project." One might have thought that maybe such reservations or principles might have stopped the whole tax increase, but alas it seems like that is too much even for the free-market-oriented by Israeli standards Prime Minister Netanyahu.