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U.S. Aid to Israel: What U.S. Taxpayer Should Know

by Tom Malthaner Monday, Nov. 04, 2002 at 4:21 PM

Most Americans are not aware how much of their tax revenue our government sends to Israel.

This morning as I was walking down Shuhada Street in Hebron, I saw graffiti marking the newly painted storefronts and awnings. Although three months past schedule and 100 percent over budget, the renovation of Shuhada Street was finally completed this week. The project manager said the reason for the delay and cost overruns was the sabotage of the project by the Israeli settlers of the Beit Hadassah settlement complex in Hebron. They broke the street lights, stoned project workers, shot out the windows of bulldozers and other heavy equipment with pellet guns, broke paving stones before they were laid and now have defaced again the homes and shops of Palestinians with graffiti. The settlers did not want Shuhada St. opened to Palestinian traffic as was agreed to under Oslo 2. This renovation project is paid for by USAID funds and it makes me angry that my tax dollars have paid for improvements that have been destroyed by the settlers.

Most Americans are not aware how much of their tax revenue our government sends to Israel. For the fiscal year ending in September 30, 1997, the U.S. has given Israel .72 billion: .194 billion falls under Israel's foreign aid allotment and 6 million comes from agencies such as the Department of Commerce, the U.S. Information Agency and the Pentagon. The .72 billion figure does not include loan guarantees and annual compound interest totalling .122 billion the U.S. pays on money borrowed to give to Israel. It does not include the cost to U.S. taxpayers of IRS tax exemptions that donors can claim when they donate money to Israeli charities. (Donors claim approximately billion in Federal tax deductions annually. This ultimately costs other U.S. tax payers 0 million to 0 million.)

When grant, loans, interest and tax deductions are added together for the fiscal year ending in September 30, 1997, our special relationship with Israel cost U.S. taxpayers over billion.

Since 1949 the U.S. has given Israel a total of .205 billion. The interest costs borne by U.S. tax payers on behalf of Israel are .937 billion, thus making the total amount of aid given to Israel since 1949 3.132 billion. This may mean that U.S. government has given more federal aid to the average Israeli citizen in a given year than it has given to the average American citizen.

I am angry when I see Israeli settlers from Hebron destroy improvements made to Shuhada Street with my tax money. Also, it angers me that my government is giving over billion to a country that is more prosperous than most of the other countries in the world and uses much of its money for strengthening its military and the oppression of the Palestinian people.

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