This money is tax money collected at Palestine's borders (not tax money from Israelis), but to answer your question: Yes, America does collect taxes and then uses that money (along with much, much more borrowed from China) to destroy and rebuild the countries it's currently occupying. Iraq has received billions and so has Afghanistan.
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Czechs arrest Turkish national wanted by Interpol for terror links (AP)
from the article: Netanyahu set to hand over $100 million in Palestinian tax money