U.S. opposes Israel's move to freeze tax money transfer to Palestinians

The United States on Monday voiced opposition to Israel's decision to halt the transfer of tax money to punish the Palestinians' bid to join the International Criminal Court (ICC).

State Department spokeswoman Jennifer Psaki called Israel's move one that would "raise tensions" and make it more difficult for the two sides to return to direct negotiations toward a two- state solution.

"We're opposed to any actions that raise tensions," she told reporters at a daily news briefing. "And obviously, this is one that raises tensions."

Half a billion shekels, or about 128 million U.S. dollars, in tax revenue that Israel collects on behalf of the Palestinian Authority for the month of December were being frozen, as Israeli Prime Minister Benjamin Netanyahu decided to retaliate against the Palestinian move.

Israel's collection of tax money for the Palestinian Authority was established under the 1993 Oslo Accords. The last time Israel froze the money's transfer was in April last year, following the Authority's reconciliation with Hamas and the establishment of a Palestinian unity government.

Palestinians sought to join the ICC after the UN Security Council rejected a resolution on Israel's withdrawal from the West Bank and East Jerusalem by 2017, in order for a Palestinian state to be established unilaterally.

Joining the ICC would mean that the Palestinians could file complaints against Israelis for violating international law or committing war crimes and crimes against humanity towards Palestinians in the territories Israel occupied in the 1967 Mideast War.

U.S. Secretary of State John Kerry, in his phone talks with Netanyahu over the weekend, reiterated "strong" opposition to actions taken by both parties and a desire to see "a reduction in tensions," Psaki said.

"What we're trying to avoid here is a back-and-forth tit-for- tat," she explained.

She also warned that the Palestinians' bid for the ICC and the steps to follow could have "implications" on U.S. assistance to the Palestinian Authority.

"Congress has a great deal of power in that regard, and that has been historically true," She said. "They're obviously watching closely what happens." Enditem