Intel’s purchase of Jerusalem-based Mobileye for US$15.3 billion is an unexpected and very grateful windfall for the Israeli Ministry of Finance. A little under 10% will end up in the hands of civil servants, say about 4 – 5 billion shekels.

The question is what to do with the cash. Some say spend it on large infrastructure projects or the financing of social schemes for weaker communities. Others, and the more vocal camp to date, favour tax cuts.

It is no secret that both the PM, Binyamin Netanyahu, and his Finance Minister, Moshe Kahlon are in the latter camp. That said, they have become as political enemies, especially in recent months. In fact, events have become so heated behind the scenes that Netanyahu did threaten this week to pull the plug on his coalition cabinet and to force a general election over their disagreements.

Netanyahu has a long history of proclaiming that he advocates lower taxes, although he is rarely active in that arena. Sometimes, the opposite seems to be true.

However, for a moment and in order to give us some perspective, let us look at some comparative figures. Again, the assumed key number is 4 – 5 billion shekels.

If Netanyahu were to call an early election, the cost to the country is estimated at around 2.5 billion shekels. And that will be cash to pay for the machinations of the political system, diverted away from the needs of the public at large. Potentially very disappointing.

More than that, in order to put together the current coalition and massage its ego, it is estimated that the political maneuverings cost the country, annually, about 7 billion shekels. This includes about 1.6 billion towards childrens’ saving schemes, a further billion for the ultraorthodox education system and 650 million to subsidise bus fares.

So, if you were to cut rid of these schemes, by just how much would corporation tax drop and VAT be reduced? How would income tax be adjusted downwards for the middle classes? And how much would all this boost the economy?

I will not answer my own questions. What I did read is that any immediate tax changes will be delayed about a month. That way, the government can ensure a full collection from VAT one last time! Pathetically ironic, but this does show how the top politician is feeding his electorate a load of ……spin.