There has been a big problem with the way the State deals with self-employed people. We pay our taxes and we pay bituach leumi payments as if we were both the employer and employee (from what I understand), yet self-employed people do not get the same benefits as employed people.
For example, if such a person should God forbid have to close up shop, he does not qualify for unemployment. I understand there are issues with maternity leave for women who are self-employed, making it more difficult for them to qualify.
MKs from Kulanu, Eli Cohen and Roi Folkman, have submitted a law proposal to deal with these problems.
The Knesset Legislative Committee has now approved these proposals, so there is some hope for the future.
The law proposal would give unemployment benefits to self-employed people who have had to close up shop and leave the workforce. This law will give a bit of a security blanket to people starting small businesses, and give them some security in their decision to go into business.
source: Globes
This is good news. The next step would be to convince the US government to stop making self-employed expats pay the 15% social security tax. Salaried employees do not need to pay it, only self-employed workers. That's a bit bite out of the income of a self-employed person, and is essentially double taxation.
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