Israel stealing from Palestinians?

""The PA is -- in practice -- becoming a terrorist authority," acting Israeli Prime Minister Ehud Olmert told his Cabinet at the beginning of its meeting Sunday. "Israel will not hold contacts with a government in which Hamas takes part."

The Cabinet decided to stop the transfer of the roughly $55 million a month it collects in taxes and tariffs on behalf of the Palestinian Authority.
Palestinian experts estimate the Palestinian budget shortfall is about $1 billion a year, and the funds collected by Israel would cover about half of that.

The Cabinet also decided to ask the international community to stop giving money to the Palestinians, though it said humanitarian aid should continue."

(AP syndicated article)

Now I think we're all in agreement that bombing Muslims and bull-dozing their houses is justified, but confiscating their tariffs to punish them for electing a government you don't like? And not even trying to cover it up? Isn't that below even Israel?

3-”Fight those who believe not in Allah nor the Last Day, nor hold that forbidden which hath been forbidden by Allah and His Messenger, nor acknowledge the Religion of truth, from among the People of the Book, until they pay the Jizyah with willing submission, and feel themselves subdued” 9:29

“قَاتِلُواْ الَّذِينَ لاَ يُؤْمِنُونَ بِاللّهِ وَلاَ بِالْيَوْمِ الآخِرِ وَلاَ يُحَرِّمُونَ مَا حَرَّمَ اللّهُ وَرَسُولُهُ وَلاَ يَدِينُونَ دِينَ الْحَقِّ مِنَ الَّذِينَ أُوتُواْ الْكِتَابَ حَتَّى يُعْطُواْ الْجِزْيَةَ عَن يَدٍ وَهُمْ صَاغِرُون” التوبة