Orrin Hatch: “for many years, Congress has recognized that private institutions can often provide better service in certain areas than…”

“for many years, Congress has recognized that private institutions can often provide better service in certain areas than the government. In this regard, membership organizations that serve various public needs are given tax-exempt treatment. However, some tax-exempt membership organizations are involved in political and lobbying activities. These activities may or may not meet with the approval of those who pay dues and certainly should not be subsidized by the taxpayers. Today, I am introducing legislation that is designed to rectify this problem. My bill is very simple. It requires tax-exempt membership organizations to disclose to their members these political activities and organizational resources spent on them. In addition, this bill will give the members of these tax-exempt organizations the opportunity to deduct the nonpolitical portion of their dues for income tax purposes without regard to the so-called ``two percent limitation.'' First, let me discuss the issue of full disclosure.”