Emily Tamkin, a global affairs journalist and author, dives into the complexities of the recently passed Stop Terror-Financing and Tax Penalties on American Hostages Act. She discusses the potential dangers of increased executive power, dubbing the bill a 'nonprofit killer' that could threaten civil liberties. Tamkin highlights the internal conflicts within the Democratic Party and how shifting perceptions on national security could stifle nonprofit advocacy. She warns of possible implications for dissent and the need to safeguard democratic values.
The Stop Terror Financing and Tax Penalties on American Hostages Act gives extensive power to the Treasury Secretary, raising fears of misuse against nonprofits.
Democratic support for the legislation has waned due to concerns over potential authoritarian practices and the suppression of dissenting voices.
Deep dives
The Controversial Provisions of the Act
The Stop Terror Financing and Tax Penalties on American Hostages Act introduces contentious measures that prevent tax penalties for Americans held hostage, but its implications for nonprofits raise significant concerns. The bill allows the Secretary of the Treasury to determine whether nonprofits are supporting terrorism without clear guidelines, which could threaten their tax-exempt status. Critics highlight that this provision could enable undue political pressures, allowing a political appointee to label dissenting organizations as terrorists based on ambiguous definitions. This undermines democratic freedoms and raises alarms about potential abuses of power that could suppress civil society.
The Shift in Political Support
Initial bipartisan support for the bill faded as the political landscape changed, particularly following Donald Trump's election. Democrats, once in favor of swift legislation to combat terrorism, became wary of the administration's potential to misuse such laws against critics and dissenting voices. Representative Jim McGovern voiced concerns about the bill’s implications for democracy, warning that legislation passed with good intentions could lead to authoritarian practices. Despite growing unease among Democrats, some maintained their support, fearing backlash against perceived softness on national security or anti-Semitism.
Impacts on Nonprofits and Society
If enacted, the legislation could significantly harm nonprofit organizations and their ability to operate, leading to a chilling effect on civil society. The Treasury Secretary's ability to unilaterally label groups as terrorist-supporting could deter donations and partnerships, dismantling credibility for organizations advocating for human rights or environmental causes. This dynamic reflects trends in other countries where similar laws have led to the suppression of dissent and the erosion of democratic principles. The potential for misuse of such laws raises concerns about the broader implications for freedom of assembly and speech in the United States.
The House already voted to pass the “The Stop Terror-Financing and Tax Penalties on American Hostages Act.” But with Donald Trump returning to the White House next year, some Democrats are viewing the power that the bill gives the executive branch—to label non-profit organizations as “funding terrorism” and strip them of their non-profit status—in a new light.
Want more What Next? Join Slate Plus to unlock full, ad-free access to What Next and all your other favorite Slate podcasts. You can subscribe directly from the What Next show page on Apple Podcasts and Spotify. Or, visit slate.com/whatnextplus to get access wherever you listen.
Podcast production by Elena Schwartz, Paige Osburn, Anna Phillips, Madeline Ducharme and Rob Gunther.