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

by Tom Malthaner

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 $6.72 billion: $6.194 billion falls under Israel's
foreign aid allotment and $526 million comes from
agencies such as the Department of Commerce, the
U.S. Information Agency and the Pentagon. The
$6.72 billion figure does not include loan guarantees
and annual compound interest totalling $3.122 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 $1 billion in Federal tax deductions
annually. This ultimately costs other U.S. tax payers
$280 million to $390 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 $10 billion.

Since 1949 the U.S. has given Israel a total of $83.205
billion. The interest costs borne by U.S. tax payers on
behalf of Israel are $49.937 billion, thus making the
total amount of aid given to Israel since 1949 $133.132
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 $10
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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