To amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of terrorist supporting organizations.
Summary
H.R. 6800 aims to amend the Internal Revenue Code of 1986 by terminating the tax-exempt status of organizations that support terrorist activities. The bill grants the Secretary of the Treasury the authority to designate an organization as a 'terrorist supporting organization' if it provides material support to groups already designated as terrorist organizations. This designation leads to the suspension of the organization's tax-exempt status.
Expected Effects
The primary effect of this bill would be to financially penalize organizations that provide support to terrorist groups by removing their tax-exempt status. This could reduce the flow of resources to terrorist organizations. The bill also establishes procedures for designation, rescission, and judicial review, aiming to balance national security with due process.
Potential Benefits
- Reduces financial support for terrorist organizations.
- Enhances national security by disrupting terrorist financing networks.
- Provides a legal framework for designating and penalizing terrorist supporting organizations.
- Includes provisions for administrative and judicial review to ensure fairness.
- Strengthens the government's ability to combat terrorism.
Potential Disadvantages
- Potential for misidentification or erroneous designation of organizations.
- Risk of chilling legitimate humanitarian aid due to broad definition of 'material support'.
- Possible legal challenges based on due process or First Amendment grounds.
- Increased administrative burden on the IRS and Department of Treasury.
- Could lead to unintended consequences if organizations shift support through less transparent channels.
Constitutional Alignment
The bill aligns with the government's power to provide for the common defense and general welfare, as outlined in the Preamble of the US Constitution. However, it could potentially conflict with the First Amendment if the definition of 'material support' is overly broad and infringes on freedom of association or expression. The due process clause of the Fifth Amendment is addressed through the inclusion of notice and review procedures.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).