Israel May Hold Palestinian Taxes on UN Vote, Steinitz Says

[Purveyor]

Israel may withhold as much as 40 percent of Palestinians’ financial revenue should they persist in pushing for a vote on statehood at the United Nations, Finance Minister Yuval Steinitz said.

“It will be very difficult for us to continue to collaborate with a hostile Palestinian entity,” Steinitz, 53, said in an interview yesterday at Bloomberg’s headquarters in New York. “Maybe we will tell the Palestinians, ‘OK, collect your own tax. Why should we do it for you?’”

Israel collects about $1.2 billion in fees each year for the Palestinian Authority and has withheld the money in the past during disputes with the Palestinians. Both the U.S. House of Representatives and the U.S. Senate have called on President Barack Obama to reduce the Palestinians’ annual $500 million in foreign aid if they proceed at the UN’s September meeting.

“It’s not up to me alone to make the decision, but in my view, if they want to use their automatic majority in the UN, then I think we won’t be able to cooperate with such an assault on Israel’s very legitimacy,” Steinitz said. “We are concerned about the Palestinian attempt to betray the very essence of the peace process.”

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http://www.bloomberg.com/news/2011-09-20/israel-may-hold-palestinian-tax-income-on-un-statehood-bid-steinitz-says.html

[EC]

1. Huh?

Israel collects taxes FOR the Palestinians and then withholds it from them? Am I reading this right? So what would be the down side to the Palestinians collecting their own taxes as per this threat?

[vminfla]

2. The down side

Well, as we have seen with Marwan Barghouti and Mohammed al-Husseini, money is fungible. More money will be spent on funding terrorism than on providing basic infrastructure needs.

[whosinpower]

3. Keep it up

And suddenly find that the PA ceases to exist - forcing Israel to govern the palistinians - whether they want to or not.

Israel risks putting itself into an untenable position that threatens the jewish character of its own state.