Austin News

U.S. Senators John Cornyn (R-TX) and Angus King (I-ME) have introduced legislation aimed at terminating the tax-exempt status of organizations that provide material support to terrorist groups. The bill, as highlighted by Sen. Cornyn, seeks to address the issue of terrorism by targeting its financial roots. He emphasized, "As tensions rise across the globe, terrorism must be rooted out at its source: money." Furthermore, he explained that the proposed legislation would ensure that groups supporting terrorism do not receive any tax benefits.

Sen. King echoed similar sentiments, stating, “Across the world, we are witnessing terrorist groups, fueled by intolerance and financial support, use violence and intimidation against civilians to sow chaos and disrupt the geopolitical order.” He emphasized the importance of cutting off critical resources from extremist organizations like Hamas, Hezbollah, and Al Qaeda. Sen. King expressed gratitude towards Sen. Cornyn and other colleagues for prioritizing good over evil in their efforts.

The legislation introduced by Senators Cornyn and King has also found support in the House of Representatives. Representatives David Kustoff and Brad Schneider introduced a companion bill that passed with a significant majority, underlining bipartisan agreement on the issue.

The bill addresses a gap in the current U.S. tax code, which suspends the tax-exempt status of entities designated as terrorist organizations by the U.S. Department of State. The proposed legislation extends this prohibition to include organizations providing material support or resources to terrorist groups within the past three years.

The initiative reflects a concerted effort to disrupt the financial networks that sustain terrorist activities and signals a firm stance against those who enable and support such organizations.