Gee, all this time, who knew that the only reason Palestine could even pretend to statehood was because the Israelis were paying for it?
I don't know about some folks, but I'm guessing that "tax transfers" sounds an awful lot like "tribute," and am having some fairly serious problems mustering the requisite sympathy. Not that I really give a crap about the Israelis, a bunch of perfidious bastards who sell our miltech out to China (the actual real government most likely to shoot us with it) whenever our back's turned.
But what part of a traditional society, in which the woman are largely not working, has 25% of its population on government "salary?" I'll tell you what kind of a traditional society... a dead one. You're talking about a society that is, in effect, one giant infant at the welfare tit.
If the Palestinians want to be a nation, they can build an economy, just like everybody else. And if they want to put into power a bunch of folks who think that war with the only neighbor of theirs willing to make more than token statements on their behalf -- that's right, folks, even the Saudis are pleding chump-change compared to what the Israelis are about to cut off -- then they can discover that the greatest freedom, as Terry Pratchett says, is the freedom "to suffer the consequences."
(And before the peanut gallery pops up with a chorus of "Mexico!," I'd like to remind everybody that we're getting back a bunch of people in exchange, so that's not an apple-to-apple comparison...)