Bill could strip tax exemptions from nonprofits accused of supporting terrorism

In America we have non profits, tax exempt organizations, supporting the Hamas/Nazis and other terrorist organization.  Donate to these terrorists’ supporters and you get a tax exemption!

“Bill sponsor Rep. Claudia Tenney said, under the current law, a nonprofit must itself be designated as a terrorist organization to lose its tax-exempt status. She said her bill would expand the authority of the Treasury Secretary, who is chosen by the president, to take action.

“Treasury can only revoke tax-exempt status under this legislation if the nonprofit in question is providing material support to terrorist groups designated under longstanding statutory standards,” Tenney said. “There are no changes to those standards or the executive branch’s ability to make those designations. There is even an opportunity to cure included in this bill where the organization can make reasonable efforts to recoup funds given to the terrorist organization.”

Nonprofits designated as “terror-supporting” would have 90 days to appeal.

Ending the tax exemption is not enough.  If they are supporting terrorists, the staffers, leaders and Board members need to face Federal charges.  We should not tolerate terrorists in our midst,  That is why we need an honest, transparent FBI.

Bill could strip tax exemptions from nonprofits accused of supporting terrorism

KCRA,  12/1/24  https://www.kcra.com/article/bill-could-strip-tax-exemptions-from-nonprofits-accused-of-supporting-terrorism/63060084

Legislation advancing in Congress would allow the Treasury Secretary to revoke tax-exempt status from nonprofits accused of supporting terrorism, but sparking concerns over potential misuse.

WASHINGTON —

A bill in Congress would allow the Treasury Secretary to unilaterally revoke tax-exempt status from nonprofits accused of supporting terrorism.

Critics argue it could be used to target a wide range of organizations, including news outlets, universities and civil society groups, particularly as President-elect Donald Trump prepares to take office. Some have even described the legislation as “the death penalty” for charitable nonprofits.

Fifteen Democrats broke with their party to back the bill, which passed in the House on a bipartisan vote of 219-184. The bill, branded the “Stop Terror-Financing and Tax Penalties on American Hostages Act,” now heads to the Senate where its fate is uncertain.

Even if it fails to win approval in the upper chamber, which is currently controlled by Democrats, Republicans could potentially revisit the issue when the GOP takes power in the next Congress.

Supporters of the bill have pointed to pro-Palestine organizations with alleged ties to Hamas, the militant group at war with Israel. They argue the current rules for stripping nonprofits of their tax-exempt status are “inadequate, time-consuming, and bureaucratic.”

“Congress must stop the abuse of our tax code that is funding terrorism around the world,” said Rep. Jason Smith, a Republican who chairs the House Ways and Means Committee.

In a letter to House leadership, a coalition of 354 organizations, including advocates for abortion access, immigrant rights, racial justice and LGBTQ+ issues, argued enforcement could be much broader once Trump takes office.

“This bill is an authoritarian play by Republicans to expand the sweeping powers of the executive branch, to go after political enemies and stifle political dissent,” said Democratic Rep. Pramila Jayapal.

Bill sponsor Rep. Claudia Tenney said, under the current law, a nonprofit must itself be designated as a terrorist organization to lose its tax-exempt status. She said her bill would expand the authority of the Treasury Secretary, who is chosen by the president, to take action.

“Treasury can only revoke tax-exempt status under this legislation if the nonprofit in question is providing material support to terrorist groups designated under longstanding statutory standards,” Tenney said. “There are no changes to those standards or the executive branch’s ability to make those designations. There is even an opportunity to cure included in this bill where the organization can make reasonable efforts to recoup funds given to the terrorist organization.”

Nonprofits designated as “terror-supporting” would have 90 days to appeal.

But the ACLU argues that the bill seeks to “avoid fundamental due process.” They say the legislation doesn’t require the government to fully disclose the evidence used to support its decisions and it shifts the burden of proof to the organization under scrutiny.

“Under this legislation, a nonprofit would be deemed guilty unless they prove themselves innocent. So civil liberties are a major, major concern,” said David Thompson, vice president of public policy for the National Council of Nonprofits.

Another goal of the bill has broad support. The legislation would protect Americans held hostage or wrongfully detained abroad from facing penalties or interest on taxes owed while they were in captivity.

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