As prepared for delivery.
“I rise to speak in support of H.R. 9495, brought forward by Representatives Tenney, Kustoff, and Schneider of the Ways and Means Committee, as well as Representative Titus of Nevada. This bill is about stopping the abuse of the tax code by organizations that support terrorism, and ensuring that those who are held against their will by foreign governments or terrorists don’t suffer further from tax penalties when they return home to America.
“In the wake of Hamas’s brutal attacks in Israel on October 7, 2023, we have discovered material support for terrorist organizations like Hamas right here in the United States, much of which have been funded by tax-exempt organizations receiving money from American taxpayers.
“Tax-exempt status must be denied to any entity found to have provided material support to a terrorist organization. We must starve the aggressors of the resources they need to commit more atrocities.
“At the same time, Hamas is still holding hostages in Gaza, including American citizens, kidnapped by the terrorist organization on October 7th of last year. We must honor the struggle of these victims. Unfortunately, they are made to suffer unintentionally due to aspects of our tax code.
“When those who are wrongfully detained around the world – whether by terrorists or by governments – finally return to America, they could be subjected to tax bills, including penalties and interest on taxes that went unpaid during their captivity.
“H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act, is the much needed solution to both of these problems.
“Under this legislation, the IRS will be given the tools it needs to ensure that American citizens held hostage or wrongfully detained – and their families – do not incur penalties for late tax payments while in captivity. American victims and their families already went through a nightmare. Tax penalties just add to the harm.
“This legislation would also close the IRS loophole that terrorist organizations have exploited for years. It builds on the Committee’s anti-terror financing efforts by prohibiting organizations from maintaining tax-exempt status if they are found to have provided material support or resources to a terrorist or terrorist-supporting organization within a three-year period.
“This issue is not theoretical. Let me provide two examples.
“One U.S. based tax-exempt organization hired a so-called journalist in Gaza, who was a member of Hamas and was literally holding Israelis taken hostage on October 7th in his own home. He was paid using tax-exempt funds. That organization is still an operating tax-exempt organization here in the U.S. today.
“Another tax-exempt organization based in the U.S. financially sponsored and funded a foreign group that was just designated by Treasury as a sham charity and a funder of terrorism. The IRS has yet to revoke the sponsor’s tax-exempt status.
“This legislation is needed. It received overwhelming bipartisan support in the Ways and Means Committee. I look forward to seeing H.R. 9495 receive even more bipartisan support here on the House floor today.”