Up for a potential fast-track vote next week in the House of Representatives, the Stop Terror-Financing and Tax Penalties on American Hostages Act, also known as H.R. 9495, would grant the secretary of the Treasury Department unilateral authority to revoke the tax-exempt status of any nonprofit deemed to be a “terrorist supporting organization.”Under the bill, the Treasury secretary would issue notice to a group of intent to designate it as a “terrorist supporting organization.” Once notified, an organization would have the right to appeal within 90 days, after which it would be stripped of its 501(c)(3) status, named for the statute that confers tax exemptions on recognized nonprofit groups.The law would not require officials to explain the reason for designating a group, nor does it require the Treasury Department to provide evidence.
Let's read H.R. 9495:
(i) NOTICE REQUIREMENT.—Prior to designating any organization as a terrorist supporting organization under subparagraph (B), the Secretary shall mail to the most recent mailing address provided by such organization on the organization’s annual return or notice under section 6033 (or subsequent form indicating a change of address) a written notice which includes
(I) a statement that the Secretary will designate such organization as a terrorist supporting organization unless the organization satisfies the requirements of subclause (I) or (II) of clause (ii),
(II) the name of the organization or organizations with respect to which the Secretary has determined such organization provided material support or sources as described in subparagraph (B), and
(III) a description of such material support or resources to the extent consistent with national security and law enforcement interests.
The bill explicitly says that the IRS must provide evidence. In theory, an unscrupulous IRS could claim that every bit of evidence is classified, but if that would happen the news media would be all over it, and the IRS would not wantonly designate organizations it has political problems with unless they can back it up.
In short, The Intercept is lying. So is the Who's Who of Israel haters who signed a letter opposing this bill, pretending that an organization losing its tax exempt status is tantamount to silencing free speech.
The potential for abuse under H.R. 6408 is immense as the executive branch would be handed a tool it could use to curb free speech, censor nonprofit media outlets, target political opponents, and punish disfavored groups across the political spectrum.
Somehow, Al Jazeera is still available to read in America without getting a tax break. If the people who donate to Jewish Voice for Peace or Students for Justice for Palestine refuse to donate unless they get a tax deduction, then they aren't really such strong supporters of those groups' messages to begin with.
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