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A real revolution
By Ido Baum

Nothing short of a revolution. That is the meaning of Judge Magen Altuvia's ruling yesterday to allow income-tax deductions for child-care expenses. Altuvia is considered one of the finest tax-law judges in the country. He is known as someone who does not hesitate to set precedents in tax law.

This time he strode into the breach that the Knesset had refused to deal with for years. Altuvia reminded everyone in his ruling that a long list of bills to allow such deductions has failed to pass over the years.
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He also dismissed the state's claims that it is taking care of working mothers through other means, and noted that these incentives have never encouraged mothers to go out to work.

Often the arrangements needed for child care are so expensive that it it is not worthwhile financially for mothers to go out to work. That is the real revolution of the ruling: it recognizes the importance of child care in letting women go out to work.

The weakness of the ruling is in its determination that the lack of a law on the matter does not prevent the deductions. On the other hand, it is also hard to argue with the economic logic of the ruling: the loss of tax revenue will be offset by an increase in the number of workers, who will pay more taxes. It should also help turn the day-care industry from one filled with under-the-table payments.

All in all, it seems unlikely the Supreme Court will overturn the ruling.
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