The Center for Democracy & Technology (CDT) has aligned with over 120 other non-governmental organizations (NGOs) in opposition to H.R. 9495, a proposed bill that could allow the Treasury Department to revoke an organization's tax-exempt status without due process. The bill would enable the Secretary of the Treasury to label a domestic non-profit organization as a "terrorist supporting organization" and remove its tax exemption if it is found to have provided "material support" to a terrorist group.
Currently, providing material support to a terrorist organization is already illegal and subject to criminal sanctions, which include some level of due process. The new provision could severely impact many non-profits by threatening their tax-exempt status, potentially stifling their speech.
Supporters of the bill have pointed to student groups' pro-Palestinian advocacy concerning the conflict in Gaza as one reason for the legislation. This type of advocacy often appears on social media platforms like Facebook, TikTok, and YouTube.
The proposed legislation, named the Stop Terror-Financing and Tax Penalties on American Hostages Act, also aims to prevent the Internal Revenue Service from imposing tax-related fines and penalties on individuals held hostage abroad. CDT's joint letter specifies that they do not oppose this part of the legislation.
###
