Of the technological units in which people will be affected by having served there, 8200 is the most famous but there are many others as well.

People from the hitech industry along with tax experts are calling this proposal draconian and say they will fight it and work against its passage.

The motivation of the Tax Authority is that these young men and women who graduate from the IDF's technological units were invested in heavily by Ithe State of Israel and they were given knowledge and tools and skills throughout their IDF service. They use that investment of Israel in them to then establish companies, but sometimes they move abroad and the State does not benefit from that investment when they become successful. The purpose of this proposal will be to give them the status of Israeli resident for tax purposes even if they move abroad within the first ten years so Israel can tax them accordingly and benefit from their success which was built off the back of the State of Israel.

The new law, should it be proposed and pass, will not take effect retroactively and will only apply to new recruits from the point the law is passed.

Those who oppose the proposal are calling it a draconian law and are saying it opposes basic laws such as freedom of movement and employment, along with international tax conventions. They say it also negatively discriminates against graduates of these units in the workforce. The way to keep these technology graduates in Israel is by creating the environment in which they will want to stay.

source: Globes

I get the reason for the law. It makes sense in some way. But the State really gets back its investment in these young men and women during their army service. These units have tremendous accomplishments. Why does the ROI have to include taxes for it be reasonable? And many of them do stay in Israel (I wonder if there are numbers showing percentages of how many stay within the first ten years vs how many relocate abroad) so Israel collects taxes on them as well... I understand the logic of such a move but I think the complaint behind it is disingenuous.

What do you think?