Thank you, Chairman Boustany, for holding this hearing today. Tax-exempt organizations play an important role in our society.
There are many types of tax-exempt organizations and each type serves an important role. There are organizations that help our poor and feed our hungry. There are colleges and universities that educate our young people, and hospitals that care for our sick. There also are organizations that touch every corner of our lives-religion, labor, and the arts-and advocate on our behalf. In total, there are over 1.8 million tax-exempt organizations that work to make our lives and our communities better.
Throughout the year, I have been concerned about the IRS budget and the effect of the budget cuts on tax administration. The IRS currently has fewer than 900 employees and a budget of $100 million to oversee nearly two million organizations that have more than $1 billion in revenue and $2.5 trillion in assets. I continue to be concerned that not properly funding the agency harms taxpayers and, in this context, harms the public trust when bad actors are discovered. I look forward to learning more about the tools used to ensure compliance with the federal tax laws.
In closing, I am mindful that tax reform is looming. If we adopt the Republican goal of a top individual tax rate of 25 percent, some tax preferences would need to be eliminated. However, I believe that tax-exempt organizations play a vital role in our country and incentives for charitable giving should remain.
I look forward to hearing from the witnesses today. I thank them for their testimony.
Thank you.
