Nonprofits are warning against a provision in Republican tax legislation moving through the House that would make it easier for the Trump administration to strip organizations of their tax-exempt status.
Language included in legislation that cleared the House Ways and Means Committee this week would give the Treasury secretary the authority to revoke tax-exempt status for groups deemed to have supported “terrorist” organizations.
The language mirrors legislation that passed in the House last year, which prompted a backlash from critics who warned an administration could abuse the authority.
“The financing of terrorism and extremism should not have preferential treatment under the U.S. tax code. I think this should be a no-brainer,” Rep. David Kustoff (R-Tenn.), who introduced the bill, said last year.
