Termination of Tax-Exempt Status of Terrorist Supporting Organizations

Floor Speech

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Mr. KUSTOFF. Mr. Speaker, I thank Chairman Jason Smith not only for his leadership on this legislation, this bill, but also for his support.

H.R. 6408 is an important bipartisan piece of legislation that will revoke the tax-exempt status for any organization that provides financial support or resources to designated terrorist groups such as Hamas or Hezbollah.

I do thank my colleague Representative Brad Schneider for joining me in introducing what I think is a very important bill.

There is no doubt, Mr. Speaker, that since Hamas' barbaric attack on Israel, we have seen a dramatic rise in anti-Semitism and, frankly, anti-Israel-motivated attacks here at home and around the world. In fact, we saw it here in the United States today.

Iran's recent attack on our ally, Israel, was a stark reminder of why we must confront Iran and its terrorist proxy groups. These same groups have also increased attacks on American troops in the region. Acts of terror anywhere in the world will not be tolerated.

Now, a crucial pillar in the global fight against terrorism is dismantling the financial networks of terrorist organizations. Without access to resources and funding, terrorist organizations are seriously restricted in their ability to carry out attacks in the very first place.

Recent reports indicate that there are U.S.-based nonprofits that are suspected of providing support and funding to terrorist groups. That is an amazing statement to make. Many of these organizations have special 501(c) tax-exempt status, which allows their donors to claim a tax deduction. To put it plainly, domestic financiers of terrorism are currently being subsidized by U.S. taxpayer dollars.

Let me be very clear, Mr. Speaker: No American should receive a tax benefit for funding terrorism.

Right now, our ability to crack down on tax-exempt organizations that support terrorism is frankly inadequate. Doing so, under current law, requires a time-consuming bureaucratic process that has sometimes prevented Federal authorities from acting. That is why we introduced this crucial legislation that we will be voting on, hopefully, later today.

This legislation will authorize the United States Treasury to revoke the tax-exempt status of any organization deemed to have provided material support or resources to a designated terrorist group within the past 3 years.

Material support includes financing, services, and training. It is any tangible or intangible aid that helps terrorist groups advance their objectives.

Under no circumstances should organizations that support terrorism be allowed to receive preferential treatment under the United States tax code.

This bill, Mr. Speaker, is a crucial step towards dismantling the financial networks of terrorist organizations across the globe including Hamas, Hezbollah, and the Islamic Revolutionary Guard Corps.

I urge all my colleagues, Mr. Speaker, to support this important, bipartisan piece of legislation that will bring us one step closer to eradicating terrorism around the world.

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