Israel Poised for ‘Economic Earthquake’ Caused by U.S. Tax Reform

By Matthew Kalman

Israeli finance officials are closely following the progress of the U.S. tax reform bill, as practitioners warn that the loss of Israel’s tax advantage could reduce its appeal for high-tech start-ups.

The U.S. House and Senate are expected to vote next week on a compromise reform plan that could trigger “an economic earthquake in international trade,” according to Israel’s tax chief.

“Meetings have already been convened in the treasury. We are considering alternatives. If it advances in its current form, we will respond,” Moshe Asher, director general of the Israel Tax Authority, told a conference Dec. 14 ...