U.S. slams Israel's plan to withhold Palestinian tax revenue

WASHINGTON, Jan. 6 (UPI) -- The U.S. State Department has criticized Israel's plan to withhold Palestinian tax revenue, as has Israeli President Reuven Rivlin and Palestinian authorities.

The plan, announced by Israeli Prime Minister Benjamin Netanyahu, would freeze the movement of $127 million in tax payments to the Palestinian Authority. It is a response to Palestinian President Mahmoud Abbas' submission of documents last week to have Palestine join the International Criminal Court (ICC); the intent is to sue Israel in court for alleged war crimes committed during the 50-day war in Gaza in 2014.

Although the United States opposes Abbas' signing of the treaty governing the ICC, known as the Rome Treaty, it also disagreed with the freezing of tax revenue.

"We conveyed to the Israelis that freezing the tax revenues is an action that raises tensions," U.S. State Department spokeswoman Jen Psaki said Monday. "We oppose any actions that raise tensions, and we call on both sides to avoid it."

Psaki added the U.S. Senate can withdraw or reduce its $440 million in aid to the Palestine Authority, which is dependent on Palestine's avoidance of joining the ICC.

Riyad Mansour, Palestinian delegate to the United Nations, called Netanyahu's plan a "blatant theft and an act of collective punishment."

The plan was criticized within the Israeli government as well, with Rivlin saying, "Freezing the transfer of Palestinian tax funds does not benefit us and does not benefit them. Using these funds, the Palestinians sustain themselves and (keep) the Palestinian Authority functioning. Israel's interest is a functioning PA."