The True Cost of Israel: U.S. Support Goes Far Beyond the Official Numbers

The American Israel Public Affairs Committee (AIPAC) concluded its annual conference late last month, triggering the usual debate in various alternative media outlets. Why does so much U.S. taxpayer money go to a small and not particularly useful client state that has a vibrant European-level economy and is already a regional military colossus?

Those who support the cash flow argue that Israel is threatened, most notably by Iran; they claim the assistance, which has been largely but not completely used to buy American-made weapons, is required to maintain a qualitative edge over the country’s potential enemies. Those who oppose the aid would counter that the Iranian threat is largely an Israeli and Saudi Arabian invention, used to justify continued American support for the national-security policies of both countries. And they would add that Tel Aviv is more than able to defend itself and pay for its own military establishment.

In truth, American aid to Israel is something like a pot of gold that keeps on giving. Both sides in the discussion would probably agree that the domestic Israel Lobby has been instrumental in sustaining the high level of aid, though they would undoubtedly disagree over whether that is a good or bad thing. The operation of “The Lobby,” generally regarded as the most powerful voice on foreign policy in Washington, led Professors Stephen Walt and John Mearsheimer to ask, “Why has the U.S. been willing to set aside its own security … in order to advance the interests of another state? [No] explanation can account for the remarkable level of material and diplomatic support that the U.S. provides.” They observed that “Other special interest groups have managed to skew foreign policy, but no lobby has managed to divert it as far from what the national interest would suggest, while simultaneously convincing Americans that U.S. interests and those of the other country—in this case, Israel—are essentially identical.”

Since the foundation of the state of Israel in 1948, it has been “the largest cumulative recipient of U.S. foreign assistance since World War II,” according to the Congressional Research Service. The United States has provided Israel with $233.7 billion in adjusted for inflation aid between 1948 through the end of 2012, reports Haaretz. Current discussions center on the Obama administration’s memo of understanding with Israel that promised it $38 billion in military assistance over the next 10 years, a considerable sum but nevertheless a total that is far less than what is actually received annually from the United States Treasury and from other American sources.

Senator Lindsey Graham (R-S.C.), speaking in the most recent legislative discussion over Israeli aid, stated that the $38 billion should be regarded as a floor, and that Congress should approve additional funds for Israeli defense as needed. It has, in fact, done so. At its most recent meeting, AIPAC announced the latest windfall from America, applauding “the U.S. House of Representatives for significantly bolstering its support of U.S.-Israel missile defense cooperation in the FY 2017 defense appropriations bill. The House appropriated $600.7 million for U.S.-Israel missile defense programs.” And there is a long history of such special funding for Israeli-connected projects. The Iron Dome missile-defense system was largely funded by the United States, to the tune of more than $1 billion. In the 1980s, the Israeli Lavi jet-fighter development program was funded by Washington, costing $2 billion to the U.S. taxpayer before it was terminated over technical and other problems, part of $5.45 billion in Pentagon funding of various Israeli weapons projects through 2002.

The admittedly unreliable former Congressman James Traficant once claimed that “Israel gets $15 billion per year from the American taxpayers.” Indeed, how Israel gets money from the United States is actually quite complex and not very transparent to the American public, going well beyond the check for $3.8 billion handed over at the beginning of the fiscal year on October 1. Even that check, uniquely given to aid recipient Israel as one lump sum on the first day of the year, is manipulated to produce extra revenue. It is normally immediately redeposited with the U.S. Treasury, which then, because it operates on a deficit, borrows the money to pay interest on it as the Israelis draw it down. That interest payment costs the American taxpayer an estimated $100 million more per year. Israel has also been adept at using “loan guarantees,” an issue that may have contributed to the downfall of President George H.W. Bush. The reality is that the loans, totaling $42 billion, are never repaid by Israel, meaning that the United States Treasury picks up the tab on principle and interest, a form of additional assistance. The Bush-era loan amounted to $10 billion.

Department of Defense co-production projects, preferential contracting, “scrapping” or “surplusing” of usable equipment that is then turned over to the Israel Defense Forces (IDF), as well as the forward deployment of military hardware to an Israeli-run base in Israel (used to support local military operations), are considerable benefits to Tel Aviv’s bottom line. Much of this assistance is hidden from view.

In 1992, AIPAC President James Steiner bragged how he “got almost a billion dollars in other goodies [in negotiations with Secretary of State Jim Baker] that people don’t even know about.” In September 2012, Israel’s former commander-in-chief, Gen. Gabi Ashkenazi, admitted at a conference that between 2009 and 2012 American taxpayers had paid for more of his country’s defense budget than had Israeli taxpayers. Those numbers have been disputed, but the fact remains that a considerable portion of the Israeli military spending comes from the United States. It currently is more than 20 percent of the total $16 billion budget, not counting special appropriations.

Through tax exemptions, the U.S. government also subsidizes the coordinated effort to provide additional assistance to Israel. No other lobbying effort to promote the interests of a foreign country benefits in like fashion, and, indeed, most similar groups are required to register under the Foreign Agents Registration Act of 1938, as former National Security Advisor Michael Flynn has learned to his chagrin regarding Turkey.

Most organizations and foundations that might reasonably be considered active parts of the Israel Lobby are generally registered with the Department of the Treasury as 501(c)3 tax-exempt educational foundations. Grant Smith, speaking at a conference on the U.S. and Israel on March 24, explained how the broader Israel Lobby uses this legal framework:

Key U.S. organizations include the American Israel Public Affairs Committee (AIPAC), the American Jewish Committee (AJC), the Zionist Organization of America (ZOA) and the Anti-Defamation League (ADL). Hundreds more, including a small number of evangelical Christian organizations, play a role within a vast ecosystem that demands unconditional U.S. support for Israel. In the year 2012 the nonprofit wing of the Israel lobby raised $3.7 billion in revenue. They are on track to reach $6.3 billion by 2020. Collectively they employed 14,000 and claimed 350,000 volunteers.

 

The $3.7 billion raised in 2012 was largely tax exempt and it does not include the billions in private donations that go directly to Israel, as well as the billions in contributions that are regarded as covered by “religious exemptions” for groups that don’t file at all. There are also contributions sent straight to various Israeli-based foundations that are themselves often registered as charities. The Forward magazine investigated 3,600 Jewish tax-exempt charitable foundations in 2014 and determined that they had net assets of $26 billion, $12 – 14 billion in annual revenue, and “focuse[d] the largest share of [their] donor dollars on Israel.” That share amounted to 38 percent of total income. The Forward adds that it is “an apparatus that benefits massively from the U.S. federal government and many state and local governments, in the form of hundreds of millions of dollars in government grants, billions in tax-deductible donations and billions more in program fees paid for with government funds.”

Some pro-Israel foundations are in-your-face about their goals. The Friends of the Israel Defense Forces, which “Support[s] the wellbeing and education needs of Israel’s brave soldiers,” is a registered tax-exempt charity that conducts fundraisers throughout the United States. Money being fungible, some American Jews have been surprised to learn that the donations that they had presumed were going to what they regard as charitable causes in Israel have instead wound up in expanding the illegal settlements on the West Bank, an objective that they might not support. It was recently reported that Donald Trump’s son-in-law and advisor Jared Kushner has a family foundation that has made donations to Israel, including funding of West Bank settlements, which is illegal under U.S. law.

Israel also benefits in other ways, frequently due to legislative action by Congress. It enjoys free and even preferential trade status with the United States and runs a $9 billion trade surplus per annum. Its companies and parastatal organizations can, without any restrictions, bid on U.S. defense and homeland-security projects—a privilege normally only granted to NATO partners—which has given it dominance in some U.S. law-enforcement, telecommunications, and travel-security sectors. Its involvement in the development and use of classified military technologies developed by U.S. arms producers has sometimes led to claims that Israel has adopted and adapted—or even stolen—proprietary information and then used it to develop its own arms industry, which is now ranked sixth in the world by volume of sales. Ironically, U.S. taxpayers have subsidized an Israeli industry that then competes directly with American companies, producing a loss of jobs in the United States.

There has also been considerable collateral damage derived from the relationship with Israel, including the Arab Oil embargo and possibly even some blame for the ruinous cost of Iraq, which many believe to have been fought in part for Israel. But even without that war, the U.S.-Israeli bilateral relationship has been an expensive proposition for Americans. Whether Israel is a strategic liability or not, or whether its complicated geostrategic situation merits virtually unquestioning support from the United States, the reality is that it has a lopsided relationship with Washington. This has long been and continues to be largely paid for by the United States taxpayer, who is not as well off as he once was.

The U.S.-Israel relationship is yet another instance where the perceived needs of an American “ally” take precedence over genuine national interests. Tens of billions of dollars need not necessarily be spent to placate a wealthy foreign country and its powerful domestic lobby. Indeed, other options to employ the money closer to home—in the form of schools, highways, and hospitals—may become increasingly attractive to American voters.


Originally published on 2017-04-15

About the author: Philip Giraldi, a former CIA officer, is executive director of the Council for the National Interest.This article was originally published by American Conservative.

Source: Signs of the Times

Origins of images: Facebook, Twitter, Wikimedia, Wikipedia, Flickr, Google, Imageinjection & Pinterest.

Read our Disclaimer/Legal Statement!

Donate to Support Us

We would like to ask you to consider a small donation to help our team keep working. We accept no advertising and rely only on you, our readers, to keep us digging the truth on history, global politics and international relations.

READ MORE!
Remembering the 1999 War on Yugoslavia (Serbia & Montenegro)
March 24, 2018, marks the 19th anniversary of NATO illegal and illegitimate bombing of Yugoslavia, Serbia and its Kosovo, province during 78 days. It has – one is tempted to say: of course – been conveniently forgotten by the West itself. It was masterminded by the United States under Bill Clinton and Secretary of State Madeleine Albright after the so-called negotiations between Serbs and Albanians in Rambouillet outside Paris (the parties never met face-to-face). While Clinton may be best remembered for his relations with Monica Lewinsky and his wife, Hillary Clinton, some of us also remember him (and Albright) for bombing Afghanistan, ...
READ MORE
ISIS is a US-Israeli Creation: Top Ten “Indications”
Makia Freeman is the editor of alternative news / independent media site The Freedom Articles and senior researcher at Tools For Freedom.com (FaceBook here), writing on many aspects of truth and freedom, from exposing aspects of the worldwide conspiracy to suggesting solutions for how humanity can create a new system of peace and abundance. ISIS is a US-Israeli creation, a fact as clear as the sky is blue. It’s a truth as black and white as the colors on their flag. For many alternative news readers, this may be patently obvious, but this article is written for the large majority of ...
READ MORE
Mainstream News and USA’s Heroics in Vietnam: Why the Silence about the 7 Million Dead?
The amount of bombs dropped by Americans on the innocent citizens of tiny French Indochina was more than twice the amount of bombs dropped in Europe, Africa and Asia during the Second World War, and this includes bombs  dropped on the cities of Hanoi and Haiphong by American hero Senator John McCain, who proudly ran for president on his military record in spite of Nuremberg Counsel for Prosecution General Telford Taylor having said he would have been proud to have prosecuted US flyers shot down while bombing in Vietnam.[3]  What mastery of fake news, blacked out news, selected news and outrageously ...
READ MORE
Tiananmen: The Empire’s Big Lie
Early in 1989, China was stirring. A decade of groundbreaking reforms inspired by Deng Xiaoping had brought the moribund economy to life and freed the nation from the ideological shackles imposed by radical Maoists during the cataclysmic Cultural Revolution. Almost everything seemed possible, as Deng proteges Hu Yaobang and then Zhao Ziyang led policymaking on a day-to-day basis. But the changes sweeping China had its dark undersides. Large-scale economic reforms also meant expanded corruption opportunities, which many officials exploited. And Chinese who “got rich first,” under the Dengist dispensation, opened a rapidly expanding wealth gap with fellow citizens. Discontent simmered dangerously. The ...
READ MORE
The U.S. Pushed North Korea to Build Nukes?
Let’s say you know someone who wears funny blue suits and doesn’t share your views on politics. So you decide to stick this person in a cage and put him on a diet of bread and water until he agrees to change his wardrobe and adjust his thinking. And when he sits quietly on the cage-floor with his hands folded, you ignore him altogether and deal with other matters. But when he stomps his feet in anger or violently shakes the cage, you throw cold water on him or poke him in the back with a sharp stick. How long do ...
READ MORE
What Should We Expect from the Talks on Syria in Astana?
At the beginning of March 2017, it will be exactly six years since the beginning of the conflict in Syria. Some journalists even make unfavorable forecasts wondering about the very possibility of reconciliation. Complicated by the foreign intervention on the part of Israel war in Lebanon, for example, had been for about 15 years. But even a six-year term it is too long. That is why we may hope that the meeting in Astana scheduled on January 23 will eventually lead to a positive result. And then there will be an occasion to consolidate the success of the negotiations in Geneva ...
READ MORE
Has Democracy Gone Missing? Or Was it Ever Here?
With a general election looming in the United Kingdom and Spain possibly following Greece’s revolt against austerity later this year, we need to think, not just who or what we are voting for, but why we should vote at all. People are suffering from a deficiency which is as unbalancing as a hormone or vitamin deficiency. What we are severely lacking in is democracy. Many of those pondering on the state of politics feel unhappy and somehow depleted. They haven’t yet realised it is democracy that’s lacking because they have believed what so many politicians have told them, over and over ...
READ MORE
Ms. Clinton, Stop Russian ‘Bear Hunting’!
It is now September 2016, just two months before the Presidential elections, and both political camps have already managed to disgust a great number of the US voters, by offering almost no comprehensive political or economic program, by offering… close to nothing! While Donald Trump is lashing out at the ‘enemy within’, during his dark moments that are increasingly resembling an advanced stage of delirium tremens (complete with a mad chase after white mice and promises to cleanse society from some imaginary and filthy rapists and social benefits guzzlers, that are constantly pouring from the south), Ms. Clinton is saddling her ...
READ MORE
European Holocaust had Roots in Africa, Now Namibia is Suing Germany
In 2014, after I published my report about Namibia, exposing the German ‘semi-denial’ that it had committed a Holocaust in its former Southwest African colony; a renowned German university sent me a letter. I paraphrase here, but the essence of the letter is kept intact: “Dear Professor Vltchek, we are impressed by your research and your conclusions, and we would like to translate and publish your groundbreaking analyses in German language. Unfortunately, we cannot afford any payment…” It was one of the major universities in the country, with tremendous budgets and an international reputation. I replied, asking why, with all those scholars and ...
READ MORE
Brainwashed Nation
The United States is immersed in a political St. Vitus’s dance typical of empires in convulsion. The confident colossus that watched its arch-rival disintegrate from 1989-1991 now has its highest office occupied by a malevolent clown enabled by supporters befitting a casting call for a Hieronymous Bosch panel. The liberal class gnashes its teeth and blames Trump, the Koch brothers, the Tea Party. But the shock is hardly credible. The current political trap befits a country that internalized its own Cold War propaganda campaign from 1945-1991. The unrelenting flow of messages aimed at keeping Americans fearful and accommodating debased our ...
READ MORE
Book Review: NATO War Crimes: “Media Lies and the Conquest of Kosovo”
Media Lies and the Conquest of Kosovo: NATO’s Prototype for the Next Wars of Globalization. Publisher: Unwritten History, Inc., New York, 2007. By Michel Collon, 276 pages, with photographs and maps. “Each war begins with media lies.” This is how Belgian journalist Michel Collon begins his analysis of the Kosovo conflict which resulted in the U.S. and NATO bombardment of Yugoslavia in 1999 and the subsequent occupation of the Serbian Kosovo province by U.S. and NATO troops. The U.S. and NATO had launched a war of aggression without United Nations approval and in violation of the territorial integrity and sovereignty of ...
READ MORE
Amnesty International Publishes a Fabricated Report on Mass Executions in Syria
On Monday, February 8 (2016), the human rights organization Amnesty International published a 48-page report accusing the Syrian government of mass executions and tortures in Saydnaya prison. According to the watchdog, between September 2011 and December 2015, an estimated 5,000 and 13,000 people were extrajudicially executed. The methods used by the report to count the alleged ‘victims’ is quite contradictory. Amnesty International admits it had little direct evidence for its claims. Instead, the report was based on conjectures and the words of former prison detainees and commentators who are linked to the Syrian opposition and have lived outside the country for ...
READ MORE
Vladimir Putin is the Only Leader the West has
A Reuters news report under the names of presstitutes Robin Emmott and Sabine Siebold shows how devoid the West is of honest, intelligent and responsible journalists and government officials. http://uk.reuters.com/article/uk-nato-summit-idUKKCN0ZN2NN First we will examine the dishonesty or incompetence of the reporters and then that of Western government officials. Emmott and Siebold describe NATO as a “Western defense alliance.” Since the Clinton regime NATO has been an alliance for waging offensive war, a war crime under the Nuremberg rules established by the United States. Under the NATO banner a number of countries have been bombed, invaded, and had their governments overthrown by ...
READ MORE
Somnolent Europe, Russia, and China: Accept US Hegemony or Go to War?
Can the world wake up? On September 19, 2000, going on 16 years ago, Ambrose Evans-Pritchard of the London Telegraph reported: Declassified American government documents show that the US intelligence community ran a campaign in the Fifties and Sixties to build momentum for a united Europe. It funded and directed the European federalist movement. The documents confirm suspicions voiced at the time that America was working aggressively behind the scenes to push Britain into a European state. One memorandum, dated July 26, 1950, gives instructions for a campaign to promote a fully fledged European parliament. It is signed by Gen. William J. Donovan, ...
READ MORE
Disappeared People in Kosovostan
During and after the the Kosovo conflict in 1998-1999, the KLA abducted and kidnapped over 2,000 Kosovo civilians, Serbs, Roma, and Albanians that opposed the KLA, who were tortured and murdered. Ten years after the conflict, these 2,000 remain missing. Approximately 1,000 to 1,3000 Kosovo Serbs are missing and presumed dead. How did they die? UNMIK occupation forces have been reluctant to investigate these mass murders of Kosovo civilians. What happened to them? Evidence has emerged that the KLA ran a series of prison camps, in Kosovo and in Albania itself, where they tortured and murdered Kosovo Serbs, Roma, and ...
READ MORE
A “Greater Israel” to Control Mediterranean from Beirut to Gaza?
With the recruitment of novice French President, Emmanuel Macron, the US Israel lobby can now boast a powerful political agent inside the corridors of power of the Élysée Palace, to liaise with those agents already resident in the British Parliament and at 1600 Pennsylvania Avenue, Washington. It is, of course, no small achievement to have managed to recruit half of the European Union as well as the United States Senate to support the dispossession of five million indigenous Arabs who have populated the West Bank, East Jerusalem, the Golan Heights and Gaza for over a thousand years. No small achievement of the powerful minority Zionist movement ...
READ MORE
The Russian War Crimes in Syria in 2016-2018: Exclusive Photo Evidence from the Cabinet of Boris Johnson & Theresa May
Exclusive photos of the Russian war crimes in Syria and the Middle East by "Free Media Group" volunteers, 2016-2018 with a proper illustrations of the Russia's militant imperialism. The authenticity of photos and their descriptions are certified by the UK Cabinet of Boris Johnson & Theresa May:   The My Lai Massacre by Russian soldiers The Russian soldiers at the spot of My Lai Massacre with their victims Aleppo citizen with a daughter during the Russian destruction of the city Russian Orthodox monk in Moscow in protest against the Russian invasion of Syria Syrian children of war and the Russian occupant soldier   Killed Russian student in ...
READ MORE
Twenty-Six Things About the Islamic State (ISIL) That Obama Does Not Want You to Know About
This article was first published in November 2014. Recent developments confirm what is known and documented: Washington is behind the Islamic State (ISIS) and at the same time it is behind the moderate Al Qaeda terrorists, which the Obama administration is supporting as part of America’s campaign against the Islamic State (ISIS). And they expect us to believe that they are committed to waging a campaign against terrorists. The Islamic State (ISIS) was until 2014 called al Qaeda in Iraq (AQI). Al Nusra is an al Qaeda affiliate which has committed countless atrocities in Syria.  It is now considered by the Obama administration as ...
READ MORE
Albanian Drug Gangsters Taunt UK by Flaunting Wealth
Members of a notorious Albanian-run cocaine smuggling gang in London have outraged the UK mass media by flaunting their illegally obtained wealth on Instagram. The Daily Mail on Monday accused the Hellbanianz group of “brazenly flaunting their gangster lifestyle” by posting pictures of themselves draped over luxury cars, smoking drugs, sporting Gucci outfits and fielding a kind of cake made up of rolled-up 50 pound notes. A similar note of outrage was struck by the Sun and the Daily Mirror. One picture shows a gang member holding a golden “game-of-thrones” style knuckleduster, encrusted with gems and formed in the shape of the letters ...
READ MORE
US Provides Military Assistance to 73 Percent of World’s Dictatorships
Source: Rich Whitney Rich Whitney is an attorney, actor, radio commentator and disk jockey, Illinois Green Party activist and former Green Party candidate for governor.
READ MORE
Remembering the 1999 War on Yugoslavia (Serbia & Montenegro)
ISIS is a US-Israeli Creation: Top Ten “Indications”
Mainstream News and USA’s Heroics in Vietnam: Why the Silence about the 7 Million Dead?
Tiananmen: The Empire’s Big Lie
The U.S. Pushed North Korea to Build Nukes?
What Should We Expect from the Talks on Syria in Astana?
Has Democracy Gone Missing? Or Was it Ever Here?
Ms. Clinton, Stop Russian ‘Bear Hunting’!
European Holocaust had Roots in Africa, Now Namibia is Suing Germany
Brainwashed Nation
Book Review: NATO War Crimes: “Media Lies and the Conquest of Kosovo”
Amnesty International Publishes a Fabricated Report on Mass Executions in Syria
Vladimir Putin is the Only Leader the West has
Somnolent Europe, Russia, and China: Accept US Hegemony or Go to War?
Disappeared People in Kosovostan
A “Greater Israel” to Control Mediterranean from Beirut to Gaza?
The Russian War Crimes in Syria in 2016-2018: Exclusive Photo Evidence from the Cabinet of Boris Johnson & Theresa May
Twenty-Six Things About the Islamic State (ISIL) That Obama Does Not Want You to Know About
Albanian Drug Gangsters Taunt UK by Flaunting Wealth
US Provides Military Assistance to 73 Percent of World’s Dictatorships
Policraticus

Written by Policraticus

SHORT LEGAL DISCLAIMER: The website’s owner & editor-in-chief has no official position on any issue published at this website. The views of the authors presented at this website do not necessarily coincide with the opinion of the owner & editor-in-chief of the website. The contents of all material (articles, books, photos, videos…) are of sole responsibility of the authors. The owner & editor-in-chief of this website is not morally, scientifically or legally responsible for any inaccurate or incorrect statement in the contents of all material found on this website. The owner & editor-in-chief of this website is not responsible for the content of external internet sites. No advertising, government or corporate funding for the functioning of this website. The owner & editor-in-chief and authors are not morally, scientifically or legally responsible for any inaccurate or incorrect statement in the text and material found on the website www.global-politics.eu

Website: http://www.global-politics.eu