Netanyahu Casts Decisive Vote to Pass Controversial Tax Bill Amid Political Drama

 Israeli lawmakers narrowly approved a contentious budget-related bill on Tuesday, with Prime Minister Benjamin Netanyahu casting the decisive vote just hours after leaving the hospital following surgery. The law, which passed by a razor-thin margin of 59-58, will end tax exemptions on “trapped profits” — earnings by corporations and multinationals reinvested in business development rather than distributed as dividends.

This measure, aimed at generating additional government revenue, sparked fierce debate within the coalition and the opposition. The bill’s passage relied on intense last-minute negotiations to secure the support of hesitant lawmakers, despite dissent from members of Netanyahu’s own coalition.

Political Fractures and High-Stakes Maneuvering

The legislation faced opposition from National Security Minister Itamar Ben Gvir and members of his far-right Otzma Yehudit party, along with an ultra-Orthodox lawmaker from United Torah Judaism (UTJ). Despite these defections, coalition leaders managed to convince Otzma Yehudit MK Almog Cohen to break ranks and vote in favor of the bill. Two other UTJ lawmakers abstained from the vote, effectively denying the opposition a potential victory.

Netanyahu’s return to the Knesset from his hospital bed underscored the stakes. Recovering from prostate surgery, the prime minister appeared visibly fatigued as he joined the plenum to ensure the bill’s passage. After casting his vote, he returned to the hospital for further recovery.

Adding to the coalition’s efforts was Likud MK Boaz Bismuth, who left the mourning period for his late mother to vote in favor of the bill. Former Defense Minister Yoav Gallant was notably absent, further tightening the vote margin.

Coalition Infighting and Public Criticism

The vote highlighted ongoing tensions within Netanyahu’s coalition, particularly between Ben Gvir and Finance Minister Bezalel Smotrich. Ben Gvir has been vocal in demanding increased police funding, clashing with Smotrich, who argued that the police budget had already been expanded. Following the vote, coalition members criticized Ben Gvir for his opposition, with some labeling his actions as reckless and calling for his removal from the government.

Opposition Leader Yair Lapid condemned the process, describing it as a “horror show,” while other critics accused the coalition of prioritizing political survival over public welfare. Allegations of behind-the-scenes deals, including claims that significant funds were promised to certain factions, added to the controversy.

Broader Implications

The law’s passage marks a significant fiscal shift, ending a tax incentive previously aimed at fostering corporate investment in Israel. While supporters argue the move will generate essential revenue, critics warn it could discourage business growth and harm Israel’s economic competitiveness.

The episode reflects the fragile nature of Netanyahu’s coalition, with divisions threatening its stability even as the government pushes forward with controversial legislation. As political tensions continue to mount, the fallout from this vote may shape the coalition’s ability to govern effectively in the months ahead.