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Sweetening the Deal

Israel provides Americans making aliyah with financial incentives and logistical support in a bid to make immigration not just an ideological choice but a material one as well

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North American Jewish immigrants arriving at Tel Aviv’s Ben Gurion Airport, 2008. (David Silverman/Getty Images)
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On a cold, gray Sunday in mid-December, I watched as a hundred or so people bustled about an aliyah “Mega Fair” in Paramus, N.J. The event was hosted by Nefesh B’Nefesh, or “soul to soul,” a start-up co-founded by two Americans—a rabbi and a businessman—that has become, in the nine short years of its existence, the official organizer of American immigration to Israel. The prospective olim, or people making aliyah, at today’s event wandered from booth to booth, gathering brochures and information packets on container shipping and real estate from eager Israeli trade representatives. If you eavesdropped on their exchanges, you’d find that the two groups seemed more or less evenly matched, their conversations echoing the efficient back-and-forth of a street bartering session.

In a conference room down the hall, Jerusalem-based accountant Philip Stein stood in front of a PowerPoint projection talking taxes. Although presenting to a group of mostly retirement-age couples, Stein was showing a slide that showed a happy young family frolicking on a perfect sandy beach, under a headline announcing their “Ten Year Vacation From Israeli Tax.” The slides that followed outlined the benefits offered by a series of new tax breaks aimed at encouraging olim and expatriate Israelis to come to Israel. In addition to the 10-year tax break on income earned abroad, Stein explained, the new law would also give them breaks on business taxes, exempt them from paying taxes on their pensions, and offer a series of point-based deductions for their first three years in Israel.

The small crowd sitting in front of him seemed to lack the necessary attention span for Stein’s spiel, constantly interrupting with irrelevant questions and uncontrollable cell phone rings. A small, quiet man with a dark blue kippah over his neatly combed sandy brown hair, Stein persisted, trying in his measured way to sell these American Jews on the benefits of a reform aimed at them. At the end of his presentation, he turned to the crowd to make one last appeal: “Israel’s a very exciting place, you’ll meet a lot of exciting people,” he said in perfect Midwestern monotone.

When Philip Stein and his wife made aliyah more than 30 years ago, Israel certainly was a very exciting place. At the time there were virtually no support systems in place to help new immigrants. Raised in Chicago, Stein was a young, newly minted accountant, and no one tracking his professional development would have recommended that he move to Israel. A few days after the Paramus “Mega” event, I asked him what his family thought when he told them he was moving to Israel. “That I was out of my mind,” he responded, grinning.

In its drive to attract professional, “high quality” immigrants, Israel faces the stark reality that Jews in America have relatively little to complain about. The people at these events are not the pioneering kibbutzim of an earlier era, embarking on a mission to build Israeli society from the ground up. The current success of Nefesh B’Nefesh lies in shifting the focus of aliyah from the ideological onto the material, as they aim to eliminate the practical barriers keeping American Jews in the United States. Nefesh seminars and webinars often take on the no-nonsense qualities of a business convention. And if they rarely mention questions of ideology, this is perhaps because, like every confident salesperson, Nefesh’s people are operating under the assumption that you already want what they’ve got.

Perhaps they are right. Since Nefesh B’Nefesh was founded in 2002, the number of North American Jews moving to Israel has doubled, up to nearly 4,000 last year. More than a third of that increase happened between 2008 and 2009, the year the U.S. economy fell through the floor. While the unemployment rate in the United States surged to nearly 10 percent, in Israel it hovered between 6 and 7 percent through 2010, according to data from Israel’s Central Bureau of Statistics. As a nod to the organization’s success, in 2008 the Jewish Agency, its one-time “rival,” ceded North American aliyah efforts to Nefesh, retaining responsibility only for confirming the eligibility of candidates and paying their airfare.

And with new incentives like the tax reform, which was passed as a part of the “Returning Home for Israel’s 60th” promotion in 2008 and first went into effect in 2010, the Israeli government is actively recognizing that economics can play a pivotal role in the decision to move to Israel. “We wanted to give people the right conditions so that they move to Israel and stay there,” Israeli Minister of Immigrant Absorption Sofa Landver said of the motivations behind the reform in an interview with Tablet Magazine. “The government’s decision suggests that there’s a change in attitude. I think Jews belong in Israel, and Israel will do everything to get them back home.”

“It’s expensive to be Jewish in America,” Landver added. Moving to Israel frees American Jews from burdensome day-school tuition and health care costs, for example. And with its focus on overcoming practical obstacles to aliyah, Nefesh B’Nefesh may be benefiting from Israel’s relative economic stability when compared with America, gaining traction with a niche group of quietly passionate people who have long held Israel at the back of their minds. Now, as the economic disparities between the two countries have narrowed, Israel has become a more attractive option, a place where they can fulfill both their emotional and financial life goals. Put another way: “People need numerous reinforcements in their decision to make aliyah,” Nefesh Vice President Danny Oberman told me. “This is one of them.”

***

Stein sits across from me just a few days before Christmas in the lobby of the Upper West Side hotel he booked for the last leg of his cross-country tour with Nefesh B’Nefesh, which had invited him as an expert speaker at events from Los Angeles and San Francisco to Chicago and now New Jersey. A small man with an open, friendly face, he hardly seems to me the kind of hardy, passionate Zionist who would leave his life behind and strike out for unknown horizons. Instead, he is the sort of man who always keeps at least one pen tucked neatly into the breast pocket of his collared shirt.

But Zionist passion was in fact the source of his decision. His young wife had just returned from a year in Israel, and when she insisted they make aliyah, Stein promised to give it a year. “I had the aliyah experience pre-Nefesh B’Nefesh, and when I came you were really on your own,” he tells me. At the time, in the late 1970s, Israel was still a volatile and underdeveloped nation, and Stein’s main client prospects—a group of U.S. Army Corps of Engineers contractors stationed at a base in the Negev—were transitory at best. But the two of them stayed, and slowly, through the economic trials of the 1980s, he built up a clientele of Americans and returning Israelis. With the birth of his five daughters, he and his wife put down roots in Israel, and now, as his company website boasts, he runs the “largest U.S. accounting firm in Israel.”

As a tax-man, Stein naturally speaks in highly pragmatic terms. Israel has changed, he says, listing the benefits. Income disparities are not as great as they used to be. And with the medical expenses retirees face in America, they might actually profit from the move. “When I meet people, they’re talking about the practical side. I don’t see the zealousness,” he says, without any sense of pioneering self-righteousness. “It’s sort of post-ideology. They’re just seeing a nice lifestyle.”

Many of Stein’s clients are Israeli expats residing in the States. Because they are tuned in to Israeli TV and news sources and are saddened by the idea of watching their children grow up outside of Israel, they may be most receptive to many of the government’s latest economic incentives. The new tax reform, for example, extends to returning Israelis many benefits previously reserved for olim. The Ministry of Immigrant Absorption website for the new law loudly trumpets this fact, with sparkling, Saturday-morning-cartoon-styled rainbows shooting from the headline. The ensuing description is so ecstatic it almost descends into absurdity, describing the reforms as “a genuine revolution, one that for the first time combines Zionist and ethical principles with financial viability.”

***

Shimon PeresIsraeli President Shimon Peres addresses new Jewish immigrants upon their arrival from the United States at Ben Gurion International airport near Tel Aviv on August 3, 2010.
Jack Guez/AFP/Getty Images

“The desire to make aliyah has been there forever,” Debbie Rapps tells me at the Paramus fair expo in Conference Room A. With her dark-rimmed glasses and gently sarcastic sense of humor, she seems like the kind of cool mom everybody wanted to have in junior high school. “I definitely have the passion,” she tells me. “I need the means,” she adds, as she politely shoos away a representative from Meuhedet Insurance. Stein has just arrived and is arranging his business cards on a back table.

Several days after the Paramus event, Debbie and I meet to talk in the cafeteria at Stern, the women’s college at Yeshiva University, where she occasionally works proctoring exams to students. When we both get stuck at the register without any cash, she casually asks the other students in line if they have extra meal plan points they’d be willing to donate, and one girl wordlessly passes her card up to the cashier. As we talk, Debbie stops periodically to exchange small talk with students she knows, asking about their parents and where they plan to go over their winter breaks. She comes across as incredibly friendly, I notice, while maintaining an honest, tell-it-like-it is attitude.

“Israel was always at the forefront of everything I’ve ever done,” she says, explaining that making aliyah is something she has dreamt of for more than 20 years. Because she was recently laid off from her job in public relations, there are several factors she must take into consideration when planning the move. The first is her five children (three boys and two girls). Her three older children are already in Israel, but the younger two—aged 16 and 7—are still in Jewish day schools. The tuition she and her husband pay is a major expense, and cutting that expense is a big draw to Israel.

And then there’s the job question. Her husband is a kosher food broker, but because of Debbie’s lay-off, they are limited financially. For the moment, she tells me, she is “freelancing” and occasionally driving into Stern from her home in Teaneck, N.J. “We’re basically very practical, cautious people. So, we’re still here.”

While hardly naive about the difficulties of living in Israel, Debbie is enthusiastic about the country’s status as a “start-up nation,” referring to authors Dan Senor and Saul Singer’s 2009 paean to Israel’s entrepreneurial achievements. She has been impressed by what she’s seen at the Nefesh B’Nefesh seminars and has looked into incentives like the Go North program, a $10 million project that provides extensive financial assistance for people to move to less-developed areas of northern Israel. In particular, the program provides a family grant of up to $25,000 and up to $16,000 in vehicle subsidies. She praises Nefesh B’Nefesh for cutting through Israel’s notorious bureaucracy. “There are certainly more options,” she says, mentioning the convenience of Nefesh’s online jobs bank. “It’s a very American organization.”

Continue reading: the “push” and “pull” factors, missing America, and “building Israel one person at a time.” Or view as a single page.

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Jonathan says:

Although not American, I would have thought that health care was a major factor too. Its pretty much free in Israel and amongst the best in the world.

Arik says:

“The push factors faced by a Jew in Ethiopia (or Russia, or Western Europe) ”

Jews in Western Europe have it very good. The ideas of French Jews, for example, living in the fear of pogroms, that I heard a lot from Americans, has no relation to the reality. European Jews are affluent, happy, successful, like US Jews.

But they do make Aliyah much more – 4000 Olim out of 5-6 millions US Jews, but 2000 Olim out of 500-600,000 French Jews for example. So why the difference ? I think education: they are much more zionist, more religious, less assimilated. It’s a interesting fact that “Reform Judaism” is almost non-existant there.

The economic boom of Israel and its quality of life now on par with Western Europe is indeed an important pull factor, but Jewish education is the key (out of full fledge State antisemitism) to increase aliyah.

Serge says:

Agree completely with Arik. The subtitle to this story is a bit silly — aliyah is certainly not being undertaken for material reasons by anyone within NBN’s catchment area, as noone is improving their economic lot in life by moving to Israel. Immigration from the west clearly remains an ideological choice. What initiatives like NBN do is make the gradient less steep.

Carol says:

nobody moves to Israel for economic reasons or if they don’t they don’t stay long. Most people move here due to a spiritual/religious pull and if they lose that they’ll soon be on the next plane back.

Solar Panels in Israel – Corruption prevails that involves the installation companies, national banking industry, and local government issuance of building permits in making the costs of installation prohibitive – requires the official approval of a licensed architect; to attest to the stability of the roof to sustain the 200-kilo weight of the 10 panel system.

Dani Levi says:

Very misleading article. To think that a few thousand bucks or free health care makes people move to Israel is just bizarre. Has the author ever been to Israel? By most people’s standards Israel is an expensive country, never mind those other issues.

benj says:

Allow me to partly disagree with the comments above me.

Of course, moving to Israel is mostly an ideological/religious choice. But you don’t eat ideology. It’s very easy to say that all Jews should live in Israel, and much harder to implement when the reality is (was) a huge loss in quality of life.

The fact that Israel’s economy is booming is a big push for Aliyah because it helps many Jews, who are interested in moving to Israel but want to keep up with their standards.

Today the GDP per capita of Israel at purchase parity power is around $30,000, more or less the same as Italia or Spain, close to France or even Germany. And the truth is there are huge gaps in Israel between Jews and Arabs (for cultural reasons much more than because of discrimination) so the Jews GDP is in fact higher than $30,000 (and even higher if you are not a haredi).

If this trend continues, if in 2020 the standard of living in Israel is higher than Western Europe – you will see a big increase in Aliyah.

Carl says:

Healthcare in Israel is free for only low income people. The healthcare tax is on a graded scale like income tax. People with higher incomes can actually pay quite a bit for health insurance.

I have got read an individual’s article. It’s extremely helpful. We will be able to benefit significantly from the item. Fluent authoring style in addition to vivid thoughts make all of us readers get pleasure from reading. I may share your opinions through my good friends.

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Sweetening the Deal

Israel provides Americans making aliyah with financial incentives and logistical support in a bid to make immigration not just an ideological choice but a material one as well