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Why freezing Palestinian taxes won't help Israel

Israel's freezing of Palestinian tax revenues is contributing to the dire economic situation in the West Bank and could accelerate the beginning of another cycle of violence.
A Palestinian policeman gestures as Hamas-hired civil servants wait to receive a payment in Gaza City October 29, 2014. Some 24,000 civil servants hired by the Islamist group Hamas, many of whom have not received a full salary in almost a year, finally got some pay on Wednesday from the new Palestinian unity government based in the West Bank. The funds were supplied by the gas-rich kingdom of Qatar, which is an ally of Hamas. But the fact the cash was delivered by the West Bank administration gave a boost t
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The Palestinians knew with certainty that a few days after the Israeli general elections on March 17, the tax funds that Israel froze in January would be released.

How did they know? For the past two decades, the tax revenues collected by Israel under the 1994 Paris Agreement have been used as a political tool to placate the Israeli public. This questionable economic weapon has always proven to be not only ineffective but even detrimental to Israel's security interests. Yet, as far as the decision-makers are concerned, this is a readily available and harmless practice if used in moderation.

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