Israel to deduct $138 mln from Palestinian funds over prisoner stipends

Israel will deduct some $138 million from taxes that it collects on behalf of the Palestinian Authority in response to stipends the authority pays to families of Palestinians jailed for anti-Israel violence, the Israeli security cabinet said on Sunday.

Israel and its U.S. ally argue that the stipends foster Palestinian attacks, while Palestinians describe the money as welfare for heroes of their national struggle. (Writing by Dan Williams; Editing by Hugh Lawson)