PA to Obama: Stop US tax breaks on Israeli terrorist organizations and illegal settlements

Ma'an - US tax deductions on West Bank settlements fund illegal activity and support "extremists and terrorists," the Palestinian Authority media center said Thursday.

“While the Palestinian people work hard to build a secure, independent state, these organizations are getting a tax break for funding settlers who steal our land and water, desecrate our places of worship, and terrorize our communities and our children,” said Ghassan Khatib, the center's chief.

“Not only does it undercut our efforts to build a democracy, it’s unfair to the American taxpayer who would like to see that money go to improve education, fund health care, or create jobs in the U.S.”

According to a recent report in the US daily The New York Times, the US Treasury lost taxes on $200 million over the past decade, due to tax breaks given to organizations that fund extremist Jewish settler groups in the West Bank. At least one of the groups has ties to a terrorist organization, the report read.

The statement said that, in line with the US stance that settlements are a major obstacle to the peace process, the US should halt all tax exemptions that benefit their funding. The move is "essential and necessary" and would "reflect US policy on this issue."

“It simply makes no sense that on one hand the American government says the settlements are one of the primary obstacles to peace, and on the other hand gives tax credits for funding the settlements,” said Khatib.

Khatib said the most "disturbing" aspect of the tax breaks concerned funding for “paramilitary operations” and “land reclamation,” both of which are tools used "to squeeze or force Palestinians off their own land." The official also pointed out that at least one of the non-profit organizations receiving tax deductions is led by a terrorist, David Ha'ivri, formerly David Axelrod of Queens, according to the New York Times.

The daily reported that Ha'ivri was, as recently as four years ago, involved in running The Way of the Torah, a designated terrorist organization in the US. The Times article also pointed out that one group of activists funded by US non-profits has pledged to attack a Palestinian mosque, vineyard or olive grove every time the Israeli government tries to curtail illegal settlement construction.

“This is incitement at its worst,” said Khatib. “And it makes it virtually impossible to create a stable, secure Palestinian democracy with this kind of activity surrounding us.”

The PA and the PLO maintain that re-entering direct talks with Israel is preconditioned on a complete halt to settlement activity across the West Bank and East Jerusalem.

Additionally, several Palestinian officials have called on Israel to stop attacks against Palestinians and their property in the West Bank by Israeli settlers, which the UN has noted is increasing.