In a recent development that has sparked considerable debate, President Joe Biden has reportedly urged Israeli Prime Minister Benjamin Netanyahu to resume the transfer of tax revenues to the Palestinian Authority (PA).
Israel suspended the transfer of these funds following the October 7 terror attacks with the PA refusing to condemn them.
Barak Ravid of Axios.com detailed a “difficult conversation” between Biden and Netanyahu, highlighting the tension surrounding Israel’s Finance Minister Bezalel Smotrich’s decision to withhold the tax revenue in response to the Hamas terrorist attack.
The Israeli government has expressed a willingness to transfer the funds, excluding those designated for Hamas-run Gaza. However, the PA has outright rejected the proposal.
This deadlock has raised alarm within the Biden administration, fearing an economic collapse of the PA. Notably, the PA’s stance has been under scrutiny, especially due to its failure to condemn the October 7 attacks and the continued financial support to terrorists and their families, a practice deeply entwined with its policies. In addition, PA-backed media is a purveyor of antisemitic beliefs deep-rooted in the community.
The implications of not funding the PA are complex. While the risk of its collapse could usher in chaos and anarchy in the West Bank, potentially endangering Israel, the PA’s limited cooperation with Israel serves as a barrier against outright conflict.
Despite the intricate relationship, Biden’s approach has raised eyebrows. His administration’s insistence on Israel aiding the PA and the push for a post-war Gaza return are seen as not only complicating Israel’s stand against Hamas, but potentially funding their enemy.
Moreover, Biden’s broader Middle East policies, particularly his leniency toward Iran and reluctance to confront Iranian-backed groups like the Houthis and Hezbollah, are perceived as indirectly bolstering forces hostile to Israel.
The U.S.’s financial involvement is further complicated by the Taylor Force Act, a Trump-era legislation that prohibits American funding to the Palestinian government as long as it continues its controversial payments to terrorists.
Critics argue that Biden’s request for Israel to transfer funds to the PA amid ongoing conflicts is not just ill-timed but borders on the irrational. They point to the absurdity of funding an entity that has not only failed to distance itself from terrorism but continues to incentivize it.
The situation is particularly ironic given the PA’s refusal to accept partial funds, indicating a prioritization of Hamas support over fiscal and humanitarian responsibility to its people.
Fundamentally, it appears Biden expects a two-state outcome over the Israel-Hamas war with the PA governing Gaza and is making every effort to keep the fragile government from going bankrupt. While Israel has made clear their war objective is the removal of Hamas without taking over Gaza post war, it is difficult to envision how the terror supporting PA would be much of an improvement.
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