Using the Tax Code to Punish Settlements: Vindictive, Illiberal, and Unconstitutional

Oct. 10 2016

The self-styled “pro-Israel, pro-peace” lobbying group J Street and its allies are pushing for the Treasury Department to investigate the tax-exempt status of charities that provide aid to Jews living in the West Bank. As Eugene Kontorovich explains, such a move would violate the Constitution and set a pernicious precedent—and is based on completely unfounded presumptions about the settlements:

While J Street claims that its demand is justified on the grounds that private Americans’ support for settlements contravenes “established public policy,” J Street is calling for the administration to do something unprecedented and clearly unconstitutional. To put it simply, J Street et al. are asking that some non-profits be denied tax exemptions because they disagree with the president on diplomatic matters. That’s what going against ”public policy” means here—not violating any statutes, but pursuing goals at odds with the foreign policy of the president. . . .

In its effort to find a legal basis for its illiberal campaign, the most J Street can invoke in favor of its claim of a clear “public policy” is political statements [about West Bank settlements] from the executive branch, and a non-binding and long-rejected 1979 letter from a State Department legal adviser. But as frustrating as this may be to J Street, there is no U.S. law or clearly established U.S. policy which indicates that settlements are illegal. . . .

A State Department memo is not a law or even an agency regulation. . . . No official has ever mistaken the memo for a legal enactment; indeed, a mere two years after the 1979 letter, President Reagan announced that settlements are lawful, and presidential administrations in the 35 years since then have studiously avoided expressing any opinion on the lawfulness of settlements. Meanwhile Congress has passed numerous laws—which do establish U.S. law and policy—that clearly show Israeli settlements are not illegal. . . .

Worse yet for J Street is the fact that even if there were a U.S. policy that Israeli settlement construction violates international law, that policy would have nothing to do with U.S. citizens supporting libraries, schools, and other services in those communities. . . . Most anti-settlement scholars are forced to concede that settlers themselves do not violate international law. . . . And just as certainly there is nothing in the Carter-era State Department letter that claims that charitable contributions by Americans to settlements violate the law. . . .

J Street’s call for a tax inquisition is authoritarian, anti-democratic, unconstitutional, arbitrary, vindictive, and, to put it delicately, uncharitably focused on the Jews.

Read more at Tablet

More about: Constitution, Israel & Zionism, J Street, Settlements, U.S. Foreign policy

Israel Alone Refuses to Accept the Bloodstained Status Quo

June 19 2025

While the far left and the extreme right have responded with frenzied outrage to Israel’s attacks on Iran, middle-of-the-road, establishment types have expressed similar sentiments, only in more measured tones. These think-tankers and former officials generally believe that Israeli military action, rather than nuclear-armed murderous fanatics, is the worst possible outcome. Garry Kasparov examines this mode of thinking:

Now that the Islamic Republic is severely weakened, the alarmist foreign-policy commentariat is apprising us of the unacceptable risks, raising their well-worn red flags. (Or should I say white flags?) “Escalation!” “Global war!” And the ultimate enemy of the status quo: “regime change!”

Under President Obama, American officials frequently stared down the nastiest offenders in the international rogues’ gallery and insisted that there was “no military solution.” “No military solution” might sound nice to enlightened ears. Unfortunately, it’s a meaningless slogan. Tellingly, Russian officials repeat it all the time too. . . . But Russia does believe there are military solutions to its problems—ask any Ukrainian, Syrian, or Georgian. Yet too many in Washington remain determined to fight armed marauders with flowery words.

If you are worried about innocent people being killed, . . . spare a thought for the millions of Iranians who face imprisonment, torture, or death if they dare deviate from the strict precepts of the Islamic Revolution. Or the hundreds of thousands of Syrians whose murder Iran was an accomplice to. Or the Ukrainian civilians who have found themselves on the receiving end of over 8,000 Iranian-made suicide drones over the past three years. Or the scores of Argentine Jews blown up in a Buenos Aires Jewish community center in 1994 without even the thinnest of martial pretexts.

The Democratic Connecticut senator Chris Murphy was quick and confident in his pronouncement that Israel’s operation in Iran “risks a regional war that will likely be catastrophic for America.” Maybe. But a regional war was already underway before Israel struck last week. Iran was already supporting the Houthis in Yemen, Hamas in Gaza, Hizballah in Lebanon, and Russia in Ukraine. Israel is simply moving things toward a more decisive conclusion.

Perhaps Murphy and his ilk dread most being proved wrong—which they will be if, in a few weeks’ time, their apocalyptic predictions haven’t come true, and the Middle East, though still troubled, is a safter place.

Read more at Free Press

More about: Barack Obama, Israeli Security, U.S. Foreign policy