Opening Statement of the Hon. Amo Houghton, a Representative in Congress from the State of New York,
and Chairman, Subcommittee on Oversight

Testimony Before the Subcommittee on Oversight
of the House Committee on Ways and Means

Hearing on Review of Internal Revenue Code Section 501 (c)(3)

May 14, 2002

Good afternoon.  We are here today to talk about an important issue – what is the proper role of religious groups in politics and lobbying.  Section 501(c)(3) of the tax code establishes requirements for charities such as the United Way, museums, non-profit hospitals, animal shelters, as well as churches, mosques, synagogues, and other religious groups.  These groups are tax-exempt.  Donors who make contributions to these worthwhile organizations receive the benefit of having the contribution tax-deductible.

Two Members of Congress, my good friend Rep. Phil Crane, a Member of the Ways and Means Committee, and Rep. Walter Jones, have introduced legislation to change the tax code.  It would allow churches to engage in greater activity than is currently allowed. 

We will hear from the IRS and one of leading experts in exempt organizations on what the law now requires and how it is enforced.  Then, we will hear from interested parties who represent a variety of different backgrounds and points of view on the issue. 

The key issue is the right balance – and how does that balance measure with the Constitution.  In other words, what activities should be permitted through one’s place of worship?  I look forward to what I am sure will be an important and enlightening discussion.