Because of the war, and the public support for Hamas offered by the PA, some Israeli officials called for the tax monies to not be passed along. How can we pass along these monies to supporters of Hamas while we are at war with them?

After some back and forth, Israel said it would pass along the tax monies but would deduct from it the portion designated for Hamas and Israel would hold on to that.

The Palestinians did not like that either. Some Palestinian officials have put forth the position that they would protest and not take any of the tax money should the Hamas portion be withheld. All or nothing.

I dont know who they think they are threatening by refusing to take the money. So don't take it.

Israel should hold on to the money, if they do not want it, and publicly, letting everyone, including Hamas and the Palestinian Authority, know that the Hamas (if not all the PA) monies will be redirected to the war effort. It could be used to pay for some bombs to drop on Gaza, or for feeding the soldiers or for whatever. Another option would be to use it for rehabilitating the destroyed communities along the Gaza border, the communities that Hamas ravaged. That would maybe add some salt to the wounds they are sustaining now in this war.