http://www.nytimes.com/2010/07/06/world/middleeast/06settle.html?ref=world ^^ Emphasis mine to clarify, I don't mean the settlements that the Israelis are subdisizing, which have been accused of violating international law or prior treaties, but rather the settlements which violate the Israelis' own laws, as they interpret them. The Times article is fairly balanced, claiming that many of these settlements actually seem to meet the spirit of the American tax break laws. I have a hard time with this... I don't see how different this is from donating money to fronts for terrorist organizations, in which case there would not only be a tax break but there would be severe repurcussions for the Americans involved. I don't think the US should allow these kinds of donations at all, let alone with tax write-offs. I think they should be formally investigated, and if it turns out that this money was used for violence or violation of the law, then the American donors should be held accountable.