House Moves Forward With Dangerous Proposal Targeting Nonprofits

<

div class=”field field–name-body field–type-text-with-summary field–label-hidden”>

<

div class=”field__items”>

<

div class=”field__item even”>

This week, the U.S. House Ways and Means Committee moved forward with a proposal that would allow the Secretary of the Treasury to strip any U.S. nonprofit of its tax-exempt status by unilaterally determining the organization is a “Terrorist Supporting Organization.” This proposal, which places nearly unlimited discretion in the hands of the executive branch to target organizations it disagrees with, poses an existential threat to nonprofits across the U.S. 

This proposal, added to the House’s budget reconciliation bill, is an exact copy of a House-passed bill that EFF and hundreds of nonprofits across the country strongly opposed last fall. Thankfully, the Senate rejected that bill, and we urge the House to do the same when the budget reconciliation bill comes up for a vote on the House floor. 

The goal of this proposal is not to stop the spread of or support for terrorism; the U.S. already has myriad other laws that do that, including existing tax code section 501(p), which allows the government to revoke the tax status of designated “Terrorist Organizations.” Instead, this proposal is designed to inhibit free speech by discouraging nonprofits from working with and advocating on behalf of disadvantaged individuals and groups, like Venezuelans or Palestinians, who may be associated, even completely incidentally, with any group the U.S. deems a terrorist organization. And depending on what future groups this administration decides to label as terrorist organizations, it could also threaten those advocating for racial justice, LGBTQ rights, immigrant communities, climate action, human rights, and other issues opposed by this administration. 

On top of its threats to free speech, the language lacks due process protections for targeted nonprofit organizations. In addition to placing sole authority in the hands of the Treasury Secretary, the bill does not require the Treasury Secretary to disclose the reasons for or evidence s

[…]
Content was cut in order to protect the source.Please visit the source for the rest of the article.