This is the threat that Bolton said Israel should have never taken off the table. Looks like they are making good on it anyway:
NBC NEWS – Israel will withhold tax revenues from Palestinian President Mahmoud Abbas’ administration until March at least in response to his statehood campaign at the United Nations, Israel’s foreign minister said.
Under interim peace deals, Israel collects some $100 million a month in duties on behalf of the Palestinian Authority in the occupied West Bank — money that is badly needed to pay public sector salaries.
“The Palestinians can forget about getting even one cent in the coming four months, and in four months’ time we will decide how to proceed,” Foreign Minister Avigdor Lieberman said in a speech Tuesday night.
Israel says Abbas violated previous peace accords by sidestepping stalled negotiations and securing a Palestinian status upgrade in the United Nations last month.