Taxation Without Representation?

This isn't cool. Withholding aid funds from Palestine I can see. But stealing their tax money? That I don't get. The fact that Israel collects Palestine's taxes and has control over what to do with the money argues strongly in favor of direct Palestinian representation in the Israeli government (i.e. the one-state solution). This, of course, is precisely what Sharon (and now Olmert) hoped to avoid through unilateral disengagement. (From the article: "[Olmert] declared that Israel must maintain a Jewish majority by relinquishing control over large parts of the West Bank and establishing clear boundaries...")