(Image Source: Al Jazeera ) BY JOHN O’CONNOR Anchor Candice Aviles After an overwhelmingly successful bid to the United Nations general assembly, the newly recognized state of Palestine is facing the first act of reprisal from Israel. RT reports … “Israel has canceled the transfer of $120 million collected in taxes on behalf of the Palestinian Authority in response to Palestine’s UN-bid, which saw it granted non-member observer status … ”  The halted money — taxes collected during the month of November — was supposed to be passed on to the Palestinian Authority. But according to Al Jazeera ,  Israel’s Finance Minister …   “ … said Sunday the government would use the money it was to transfer to the Palestinians to pay down their debt to Israel's electricity company and other Israeli bodies.”  The revenue constitutes a large percentage of the Palestinian budget, including the salaries of government officials. Al Jazeera reports without the money, the Palestinian Authority will not be able to pay its officials. “Israel's government had warned the Palestinians and the international community that it would react harshly to upgraded status for the Palestinians, accusing them of leapfrogging negotiations and disregarding peace accords … Israel has frozen payments to the [Palestinian Authority] before, usually during times of diplomatic tensions.”  According to the Associated Press, Israel also announced earlier this week that the U.N.’s new recognition would not stop them from pressing forth with their plans to build several settlements in the Palestinian West Bank.