Tax Authority Official Sparks Debate with Direct Social Media Engagement

Nili Ben-Tuvim, Director of the Research and Policy Department in the Economic Division of the Tax Authority, has become a prominent figure on the economic feed of the social media platform X, formerly Twitter. Her visibility stems not from an official announcement, but from her direct, detailed, and polite responses to citizens, economists, and journalists regarding proposed tax policies. This unusual approach for a government official has generated significant public interest, offering citizens a direct line to a senior official involved in planning a new travel tax on flight tickets.

The discussion was ignited when a position paper from the Tax Authority's Planning and Economics Division was leaked, recommending a "travel tax" on outbound flights that could generate substantial revenue for the state. Following criticism from several users, Ben-Tuvim responded on X, stating that "there are few taxes on flights, no VAT and no excise tax on fuel. So it is logical to tax an area that is almost untaxed." This response garnered considerable attention, with hundreds of thousands of views and likes.

Ben-Tuvim further explained that the proposed principle is to tax the impact of flights on global warming, suggesting that while Israelis might not want to pay for the pollution they cause, the idea is not entirely far-fetched. She detailed that noise pollution alone adds NIS 100 million annually to the NIS 1.1 billion cost, or NIS 3.5 billion over 50 years, when discounted to present value. She clarified that the distance of a flight is related to its environmental impact, as longer flights are more polluting, and the core idea of the tax is to internalize the environmental cost.

In a subsequent post, Ben-Tuvim addressed the public directly, acknowledging the intense reaction but emphasizing the need for better communication about taxes. She shared a table indicating that the top income decile earns 45% of all income in Israel and pays 63% of taxes, excluding VAT and corporate taxes. She also provided details on income thresholds for the ninth and tenth deciles, noting that the tax rate for the top percentile actually decreases due to income from capital gains being taxed at approximately 25%, compared to income tax rates of up to 50% on labor.

Ben-Tuvim also addressed concerns about emigration, stating that the Tax Authority is "definitely concerned" by an increase in emigration from the upper income deciles since 2022, with a 75% rise in emigrants from the top decile in 2023 and 2024. She stressed the need to raise significant tax revenue in the coming years due to projected state expenditures. She mentioned that the previous budget included a NIS 5 billion increase in tax brackets and expressed hope that elected officials would continue in this direction. Regarding tax flattening, she stated that a declared goal of the Israeli tax system is to reduce the gap between the rich and the poor, a goal she personally agrees with.

Ben-Tuvim's open communication style is highly unusual for the Tax Authority. While senior officials initially observed her interactions with some surprise, they did not find cause for criticism as she was simply answering tax-related questions. Legal officials, however, expressed interest in the fact that answers were being provided outside of the official spokesperson or public relations channels. Ben-Tuvim has not been summoned for clarification by the Director of the Tax Authority, Shi Aaronovitch. Colleagues describe her as a unique individual, not a typical civil servant, who engages with citizens on social media to explain tax policies. A senior official noted that while her interactions are unconventional, they are not viewed negatively, as her intention is to explain tax matters. Ben-Tuvim herself believes that direct communication is appropriate given the public's strong interest in tax issues that affect their finances. A resident of Mevaseret Zion and a graduate of the Hebrew University, Ben-Tuvim recently joined the Tax Authority, having previously held research and economist positions at the Ministry of Labor, the National Economic Council, and the Bank of Israel's Research Division. Her Twitter account, where she identifies as an economist and civil servant, has approximately 3,500 followers. In a recent exchange, she humorously suggested they might face criticism together or that she might close her Twitter account the next day.