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

Hits: 1189

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!
US has Killed More than 20 Million People in 37 “Victim Nations” since World War II
After the catastrophic attacks of September 11 2001 monumental sorrow and a feeling of desperate and understandable anger began to permeate the American psyche. A few people at that time attempted to promote a balanced perspective by pointing out that the United States had also been responsible for causing those same feelings in people in other nations, but they produced hardly a ripple. Although Americans understand in the abstract the wisdom of people around the world empathizing with the suffering of one another, such a reminder of wrongs committed by our nation got little hearing and was soon overshadowed by ...
READ MORE
The Balkans today
After the Russian military victory over the Ottoman Empire in the 1877−1878 Russo-Ottoman War it was signed the San Stefano Treaty between these two states on March 3rd, 1878. According to the treaty, a Greater “San Stefano” Bulgaria, under the direct protection by Russia, had to be established within the borders of the Ottoman Empire. However, an idea of “San Stefano Bulgaria” directly affected three Balkan nations: the Serbs, Greeks and Albanians as some of their ethnic and historical territories had to become part of a Greater Bulgaria. The “San Stefano Bulgaria” was projected by the Russian authorities to cover ...
READ MORE
The Demonization of Islam
Much is being written regarding the Charlie Hebdo issue in Paris, France. I do not condone any killing but at the same time I do not support issues that violate human rights, religious freedom or freedom of speech and thoughts. Using cartoons to condemn Divine thoughts and beliefs is utterly wrong because they fall under hate crimes and not under freedom of speech as we are lied about. The perpetrators of hate continue to be protected. Islam is under attack and its adherents, the Muslims, are being targeted through provocation. In a recent article Charlie Hebdo and Tsarnaev’s trial: Cui ...
READ MORE
How to Combat Croatian Revisionists’ Culture of Lies
In early 1944, Mirjana Babunovic-Dimitrijevic, a 22-year-old middle-class woman living in Sarajevo, was arrested by the Ustasa police. After she was arrested along with her mother and aunt, they were all deported to the Jasenovac concentration camp, for refusing to convert to Catholicism. All three women died there in late 1944.These women were among more than 80,000 victims who perished at Jasenovac between 1941 and 1945. While we don’t know precisely how they died nor what happened during their short lives in the camp, two things are certain.First, their deaths were the direct result of deliberate political decisions. Second, they ...
READ MORE
Yalta, 1945: The Impact on Yugoslavia
What was the impact of the 1945 Yalta Conference on Yugoslavia? The key result of the conference for Yugoslavia was that it endorsed and ratified the 1944 agreement between Josip Broz Tito and Ivan Subasic. The end result was that the American, British, and Soviet governments installed a dictatorship in Yugoslavia. The Allied task was the illusory and chimerical objective of uniting the prewar, monarchist Yugoslav Government-in-Exile based in London headed by Peter II Karadjordjevich with Tito’s de facto anti-monarchist, Soviet-style, Communist government in Belgrade. This was the major issue that was discussed at plenary meetings and foreign ministers sessions at ...
READ MORE
Kurdish Intentions to Join SAA: Secret Deal against the U.S.?
According to Inside Syria Media Center military sources in Syrian Democratic Forces (SDF), SDF-Kurds will join the Syrian Arab Army (SAA) as “Northern Syria Protection units” after the establishment of the federal system in Syria.A Rojava official and the joint chief of defense in Syrian Kurdistan (Rojava), Rezan Gilo stated that the Kurdish-led Syrian Democratic Forces (SDF) have no problem joining the Syrian army if a federal state is awarded in northern Syria (Kurdish autonomous territories as part of the federal Syria). They are now in process of considering the possibility of joining the SAA.“There is no problem for our ...
READ MORE
George H. W. Bush: The Man Who Embodied What Putin’s Accused of Being
The passing of former President George H. W. Bush over the weekend prompted a lot of reflection about the influence that he had on America’s role in the immediate post-Cold War era. Notorious for literally proclaiming the “New World Order”, Bush Sr. also has the ignoble distinction of being one of the US’ few one-term presidents, dramatically losing then-Arkansas Governor Bill Clinton in the 1992 election. More interestingly for most foreign observers, however, is that Bush Sr. literally embodied much of what Russian President Vladimir Putin is accused of being, even if the Western Mainstream Media will never recognize this ...
READ MORE
Fake News on Russia and Other Official Enemies
It has been amusing to watch the New York Times and other mainstream media outlets express their dismay over the rise and spread of “fake news.” These publications take it as an obvious truth that what they provide is straightforward, unbiased, fact-based reporting. They do offer such news, but they also provide a steady flow of their own varied forms of fake news, often by disseminating false or misleading information supplied to them by the national security state, other branches of government, and sites of corporate power. An important form of mainstream media fake news is that which is presented while ...
READ MORE
Edward S. Herman (ed.), The Srebrenica Massacre: Evidence, Context, Politics (PDF Book)
Read the truth about "Srebrenica Massacre" in 1995. 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. The Al-Qaeda-linked ‘El-Mujahedeen’ brigade of the Bosnian Muslim Army parading in downtown Zenica in central Bosnia in 1995
READ MORE
In the Pandemic NATO Shows Itself to Be as Irrelevant as Ever
In 2015 Bill Gates gave a talk titled “We’re Not Ready for the Next Epidemic” in which, in a remarkable exhibition of understated and uncannily accurate prescience, he reflected on the outbreak of Ebola virus and forecast worse to come. This amazing man told us that “As awful as this epidemic has been, the next one could be much worse. The world is simply not prepared to deal with a disease — an especially virulent flu, for example — that infects large numbers of people very quickly. Of all the things that could kill 10 million people or more, by ...
READ MORE
How the US Empire Was Made in North Korea
Over the past 15 years, fighting-talk has periodically flared over ‘what to do about that alleged “crazy Asian dictator”   in North Korea. Today’s round of brinkmanship by the US/Western ‘deep state’ against North Korea will – in all probability – unfold the same way as in previous episodes; it will fizzle out. China is a guarantor of North Korean security, so the US will not go to war with North Korea. Period. The battle between Trump and the Washington Crazies for control of the reins of empire continues, however, and the ‘Krazy Korean’ is relevant to that. I hope ...
READ MORE
Syria and the Project to Balkanize the Middle East
A decade ago I published a book, Israel and the Clash of Civilisations, that examined Israel’s desire to Balkanize the Middle East, using methods it had refined over many decades in the occupied Palestinian territories. The goal was to unleash anarchy across much of the region, destabilising key enemy states: Iran, Iraq, Syria and Lebanon. The book further noted how Israel’s strategy had influenced the neoconservative agenda in Washington that found favour under George Bush’s administration. The neocons’ destabilisation campaign started in Iraq, with consequences that are only too apparent today. My book was published when efforts by Israel and the neocons to move ...
READ MORE
Totalitarian Rule in America
Every day signs are looming larger than life as we know it in the wealthiest nation on earth that it’s about to crash and burn, forever changing not for the better. The latest wake-up call arrived in a Guardian article earlier this week. The story features a secret prison not unlike the CIA torture detention centers all over the world whereby the Chicago police hold rounded up US citizens for hours or days at a time for interrogation. The same internationally illegal roundups of suspected “potential terrorists” (which by latest Gestapo America standards can easily be you or me) that the CIA ...
READ MORE
Barack Obama vs. Vladimir Putin: How Bloomberg ‘News’ Lies
On December 31st, Josh Rogin of Bloomberg ‘News’ headlined “Inside Obama’s Secret Outreach to Russia,” and his opening sentence ‘reported’ on “the fact that Russian President Vladimir Putin has shown little interest in … halting his aggression in neighboring Ukraine.” That ‘reporter’ from Bloomberg ‘News’ was ‘reporting’ from only sources inside the U.S. Administration — only from individuals who are hired by and who represent Barack Obama, none who are hired by and who represent Obama’s enemy Vladimir Putin; and so the question naturally arises as to whether Rogin and Bloomberg ‘News’ are ‘reporting’ propaganda, or are they instead reporting ...
READ MORE
The Truth about Christopher Columbus
"In fourteen hundred and ninety-two, Columbus sailed the ocean blue…."Today, Christopher Columbus is celebrated as a mythical hero by some – complete with songs, poems, and fictional tales about his great adventure across the Atlantic to explore the majestic land that would eventually be known as the Americas. There are fifty-four communities named after the explorer in the United States, including the District of Columbia. “Hail, Columbia” was the United States’ unofficial national anthem until 1931. A federal holiday, “Columbus Day,” is celebrated every second Monday in October.Despite all of this, historians have begun to tear down the Columbus myth: ...
READ MORE
Jamala’s 1944: Song for Nazi Tatars
In April-May of 1944, the Crimean Tatar battalions took part in battles against the Red Army in the Crimea. The units that were evacuated from the Crimea in June 1944, were compiled into the Tatar mountain-Jaeger three-battalion SS Regiment. A month later, the group became the first Tatar-mountain-Jaeger SS Brigade (2,500 troops) under the command of SS Standartenführer Fortenbah. On 31 December 1944, the unit was disbanded to become a part of the East Turkic branch of SS as the Crimea battle group: two infantry battalions and one hundred horses.German Field Marshal Erich von Manstein testified: "Most of the Crimean ...
READ MORE
“What About Crimea?” – Latest Narrative From Canada’s Foreign Minister
A news compilation on New Cold War.org on March 8, 2017 reported the controversy that has broken out in Canada surrounding the family history of Canadian Foreign Affairs Minister Chrystia Freeland. Her maternal grandfather edited two pro-German newspapers in Poland and Austria during World War Two. He and his family settled in Canada after the war. The minister told a March 6 press conference in Ottawa that inquiries into her family history constitute a ‘Russia disinformation’ campaign directed at her and the Canadian government. The minister as well as sympathetic journalists state that the ‘disinformation’ has been aided and abetted by ...
READ MORE
Kosovo: When the Spoils of War are Human Organs
Former President Bill Clinton continues to be feted around the world as a progressive champion of human rights. However, a European Union task force last week confirmed that the ruthless cabal he empowered by bombing Serbia in 1999 has committed atrocities that include murdering individuals to extract and sell their kidneys, livers and other body parts.Clint Williamson, the chief prosecutor of a special European Union task force, declared that senior members of the Kosovo Liberation Army (KLA) had engaged in “unlawful killings, abductions, enforced disappearances, illegal detentions in camps in Kosovo and Albania, sexual violence, forced displacements of individuals from ...
READ MORE
Clinton: Destroy Syria for Israel
A newly-released Hilary Clinton email confirmed that the Obama administration has deliberately provoked the civil war in Syria as the “best way to help Israel.”In an indication of her murderous and psychopathic nature, Clinton also wrote that it was the “right thing” to personally threaten Bashar Assad’s family with death.In the email, released by Wikileaks, then Secretary of State Clinton says that the “best way to help Israel” is to “use force” in Syria to overthrow the government.The document was one of many unclassified by the US Department of State under case number F-2014-20439, Doc No. C05794498, following the uproar ...
READ MORE
The Killing of History
One of the most hyped “events” of American television, The Vietnam War, has started on the PBS network. The directors are Ken Burns and Lynn Novick.  Acclaimed for his documentaries on the Civil War, the Great Depression and the history of jazz, Burns says of his Vietnam films, “They will inspire our country to begin to talk and think about the Vietnam war in an entirely new way”.In a society often bereft of historical memory and in thrall to the propaganda of its “exceptionalism”, Burns’ “entirely new” Vietnam war is presented as “epic, historic work”. Its lavish advertising campaign promotes its ...
READ MORE
US has Killed More than 20 Million People in 37 “Victim Nations” since World War II
The 1878 San Stefano Treaty and the Albanians
The Demonization of Islam
How to Combat Croatian Revisionists’ Culture of Lies
Yalta, 1945: The Impact on Yugoslavia
Kurdish Intentions to Join SAA: Secret Deal against the U.S.?
George H. W. Bush: The Man Who Embodied What Putin’s Accused of Being
Fake News on Russia and Other Official Enemies
Edward S. Herman (ed.), The Srebrenica Massacre: Evidence, Context, Politics (PDF Book)
In the Pandemic NATO Shows Itself to Be as Irrelevant as Ever
How the US Empire Was Made in North Korea
Syria and the Project to Balkanize the Middle East
Totalitarian Rule in America
Barack Obama vs. Vladimir Putin: How Bloomberg ‘News’ Lies
The Truth about Christopher Columbus
Jamala’s 1944: Song for Nazi Tatars
“What About Crimea?” – Latest Narrative From Canada’s Foreign Minister
Kosovo: When the Spoils of War are Human Organs
Clinton: Destroy Syria for Israel
The Killing of History
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