Israel needs to declare that until the PA takes concrete steps to dismantle its system of rewarding terrorism, any talk of its role in future governance arrangements are a non-starter. The stabbing of Ludmila Lipovsky, an 83-year-old Holocaust survivor, outside her assisted living facility in Herzliya last week, and the terrorist attack near Kedumim on Monday morning crystallized a fundamental obstacle to peace in the Israeli-Palestinian conflict: the Palestinian Authority's continued financial incentivization of terrorism.