Issue: 4.01 | January 1, 2003 | by:
Judy Maltz
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Work Here, Live There They usually meet twice a week: once on El Al flight 001 from Tel Aviv to New
York on Sunday night, and again on the same return flight to Israel on Thursday.
Some of them have been doing this routine for 5-10 years; others began a
short time ago. All of them, however, belong to the special species of
frequent-flyers who live here and work there. They spend their weekends in
Israel with their families, but they spend their midweek working hours alone, in
another country. How many people live this double life isn’t clear; estimates
range from the hundreds to the thousands. One thing however is sure: Because of
the gloomy state of the Israeli labor market, their number is growing. Almost all of them are immigrants from Western countries, whether recent or
from many years ago. It’s their second passport that enables them to work
legally outside of Israel. Their numbers include doctors, lawyers, accountants,
brokers, and diamond traders. They are also noticeable on flights to London and
Paris, not just New York. Many of those flying to New York go on to connecting
flights to Chicago and Los Angeles. If you think Los Angeles is far away, one
person is reported to manage a business in Australia, returning to his family in
Israel only on holidays. Most of these commuters are fathers, aged 40 or more, who have already
enjoyed a successful overseas career. They immigrated to Israel for ideological
reasons, but are unwilling to accept lower salaries, living standards, and
status, and are therefore continuing their professional lives abroad. In the
past two years, they have been joined by a large group of new immigrants, who
came to Israel to enjoy the high-tech boom. When the boom turned to bust, they
were among the first to get fired. The vast majority are religiously observant, living in towns like Beit
Shemesh and Hashmona’im, which have become home in recent years to large numbers
of native English-speaking observant Israelis, perhaps because the airport is
close by. Saul Zimmerman, a lawyer specializing in U.S. tax law, has already spent five
years on the trans-Atlantic line, since immigrating to Israel with his wife and
five children and settling in Beit Shemesh. He used to spend two weeks in the
United States, followed by two weeks in Israel. Lately he’s been taking it
easier, spending three weeks in Israel for every two weeks in the United States.
Zimmerman knows “dozens more like himself” in Beit Shemesh, including a
neighboring engineer, who spends one week in Israel with his family for every
two months he works in the United States. Another neighbor works in Russia for a
U.S. company, spending weekends in Israel with his family. Zimmerman is also
friendly with a dentist from Beit Shemesh who immigrated to Israel and tried to
open a clinic here, but without success. The dentist continues to work in his
U.S. clinic. Zimmerman has been a partner in a Newark, New Jersey, law firm for over 20
years. He came to Israel at the rather advanced age of 44, after putting
together a customer portfolio in the United States. “It was clear to me when I
immigrated to Israel that I wouldn’t be able to earn a living on the salaries
being offered here,” he says. “I of course made a few phone calls to make sure,
but I quickly realized that if I work here, we’d have to drastically lower our
standard of living.” That doesn’t mean that Zimmerman has chosen an easier path. “All these
flights are obviously an awful headache,” he admits. “Even ordinary flying is no
great pleasure. If you add to that the complaints of your wife, who has to
handle everything alone, it’s no pleasure at all.” Zimmerman can point to at least one advantage of frequent flying. “My wife
and children always prepare me a shopping list of things you can’t get here, or
which are very expensive. I also use the time there to record TV programs that
my wife likes.” Zimmerman was the only one willing to be interviewed publicly on the subject.
The others are understandably reluctant to be exposed; some even would not agree
to talk anonymously. It seems that the chance to continue enjoying a high
income, a “U.S. salary,” is not the only attractive feature of their work
arrangement. At least until now, those making a living overseas were not
required to report to the Israeli tax authorities. The good times, however, are
scheduled to end with the implementation of the income tax reform. Up until now,
anyone spending over 180 days a year outside Israel was not considered an
Israeli resident for tax purposes, and was therefore exempt from tax reporting
in Israel. Under the reform, what determines whether people are Israeli
residents for tax purposes is not how long they spend in Israel, but whether
their life is centered in Israel. “Clearly, if someone has a home in Israel, and
their family is here, then their life is centered in Israel, even if they make a
living working in the United States,” states former Income Tax Commissioner
Doron Levy. As an expert on tax law, Zimmerman is well aware of the problem. “I think the
reform means that people like me will have to pay three to four times the amount
of tax we do now. I think the result will be that some will try to cheat the
authorities, while others will simply leave Israel,” he says. It is worth noting that quite a few of the so-called “new immigrants” working
overseas never changed their status, and still enter Israel on tourist visas,
although their families already have Israeli identity cards. Mickey (a pseudonym), a peridontist, immigrated to Israel two months ago with
his wife and five children, settling in the Ramot neighborhood of Jerusalem. He
has already traveled back six times since. He flies to New York on Sunday night,
starts his work week on Monday morning, works until Thursday afternoon, and goes
straight from his clinic to catch his return flight to Israel. For the time being, he’s not complaining. “Everyone has to sleep. What
difference does it make if I sleep in my bed at home or on a flight?” he asks.
“This whole arrangement is harder on my wife, who has to handle everything
alone. The only hard thing for me is day flights from New York to Israel. That’s
when I really feel the jetlag.” Globes: Why don’t you start a clinic here in Israel? “Mickey”: ”I was worried about the economy in Israel, and I think I can earn
more in the United States. In order to set up a clinic here, I’d have to start
from scratch, and I’ve got five kids to feed. Maybe, sometime in the future,
I’ll set up a clinic here, but first I’d have to pass all the tests to get a
license to work in Israel, and that’s a real mess.” But the flights also cost a lot money, don’t they? ”By my figuring, it costs me US$30,000 a year, but if I had stayed in the
United States, I’d have had to go on paying tuition to private high schools for
my kids, which would cost me US$60,000 a year.” ”Mickey” says that the fact that his family is not around enables him to work
longer hours at the clinic with a clear conscience. He adds, “Now, when I’m in
the United States, I work 12-13 hours a day. Thank God, I have good friends, who
invite me to a hot evening dinner at their home.” Ron Allswang, director of Tehilla, a voluntary organization that promotes
immigration among the religiously observant, is well aware of the problems these
families face as a result of the long separations. “There’s no doubt that it
creates a lot of family tension, especially because the wife usually has to do
everything by herself. Most of these people believe they can’t get along on an
Israeli salary. I try to explain to them that it’s not really true, because in
Israel, they don’t need private schools for their kids, for example. They also
don’t need to buy four to five suits a year, because people don’t wear suits
here, but it’s hard for them to believe that.” Allswang estimates that 10 percent of the new immigrants from Western
countries still make a living from work in their native countries. “We’re
talking mostly about people earning six-figure salaries in the United States,
while in Israel, they’d have to settle for NIS 10,000 (US$2,142) a month. People
can work two or three weeks in the United States, and earn as much as they would
in four to five months in Israel. Out of this group, I know an accountant whose
work is very seasonal, so he didn’t even bother to take the Institute of
Certified Public Accountants in Israel admission exams. Other professionals,
like lawyers, have expertise and specialties that are very hard to transfer to
Israel.” How do the immigration authorities in Israel view this phenomenon? “We
welcome creative solutions like this, which enable people to immigrate to
Israel, and continue making a good living, says Jewish Agency immigration
department director Leah Golan. “As distances become more manageable, the
phenomenon grows. The economic situation is one factor, but not the only one.
These people are usually middle-aged, with professional achievements they want
to preserve, but they don’t want to postpone their immigration because of this.”
Golan says the Jewish Agency is aware that, in many families, the chief
breadwinner will maintain tourist status. “As far as we’re concerned, they don’t
have to change their status. If a family wants to immigrate to Israel, and one
of the parents asks that that his or her status not be changed, we allow it,
because what’s important for us is the intention of settling in Israel.” Golan adds that with the arrangement of residence in Israel and work in the
United States, “We manage to bring many good people to Israel, quite well-off
families.” Jacob (a pseudonym), a diamond trader living in Hashmona’im, explains why he
and most of his friends, including doctors and lawyers, have been flying two to
three times a month to New York for eight years. “I’d have to work three times
as much here, for the same money,” he says. “On the one hand, I’m away from home
a lot, and when I’m in New York, I work at a crazy pace. On the other hand,
though, when I’m here, I’m only with my family, and I actually wind up spending
more time with them.” If there were an alternative, however, “Jacob” admits he’d grab it. “If I
could find work that would pay me enough to feed my four kids, I wouldn’t
hesitate to take it. The way it looks now, though, I’ll have to wait a long time
for it to come along.” Marksman is now trying to promote a program for placing new English-speaking
immigrants from Argentina as high-tech salespersons in Britain. “Some of them
have a lot of experience in sales, and London is, of course, much closer than
New York,” he explains. How, if at all, will the recession in Israel affect the transcontinental
commuters? “I feel it in only one way,” Zimmerman answers. “Before the
recession, El Al operated many more flights to New York. As a frequent flyer, I
could get an upgrade to business class on almost every flight, because there
were always empty seats. Today, there are fewer flights, and most flights are
full, so I don’t get an upgrade. As insufferable as the flights were then, now
they’re even worse.” |
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Judy Maltz is a member of the editorial staff of Globes, the business daily. |
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