1958
The Knesset debates a uniform tax bracket and raising the estate tax rate regardless of the relative status between heirs and the deceased. There was also discussion about extending the period before death, during which gifts would be considered part of the estate, from 3 to 7 years. As part of the debate, MK Nahum Levin requested that the tax be repealed altogether due to the damage caused by the withdrawal of investments from foreign investors.
The debates lasted several years and triggered a wave of opposition mainly from the Herut and Liberals. As a result of the criticism, which convinced many that the estate tax would also harm the middle class, many alterations were made to the bill.
As part of the proposal, the valuation of a residential apartment would be lowered to avoid the need to sell the apartment to pay the tax. Consequently, the coalition proposed a complete exemption from taxation on pensions, compensation, and residential apartments.