Well, read on a little. The text quoted clearly blames monarchy on the Heathens. Paine then recounts the history of monarchy in the Old Testament, with an example of god Himself speaking against it as a form of idolatry, his point being not that the Jews are the source of monarchy but that scripture is plainly opposed to it. Concluding that section, Paine writes "And a man hath good reason to believe that there is as much of kingcraft as priestcraft in withholding the scripture from the public in popish countries. For monarchy in every instance is the popery of government." As a good 18th-century Protestant, Paine was of course against "popery", yet the historian doesn't claim Paine blamed monarchy on the Catholics.
The book itself was well-reviewed, but the takeaways are a bit disturbing.