J Street Hypocrisy Over Politicizing Tax Exempt Status Of Organizations

On November 21, 2024 the House of Representatives approved H.R. 9495 by a vote of 219-184 with 30 people not voting. The bill was called the “Stop Terror-Financing and Tax Penalties on American Hostages Act” and principally involved relaxing laws about tax collection if people are “detained” like hostages in Gaza, as well as to terminate “the tax-exempt status of terrorist supporting organizations.”

J Street, the left-wing pro-Palestinian group marketed as Jewish and pro-Israel was “dismayed” at its passage. It had joined with 50 other progressive groups in a letter to members of Congress to oppose the bill on the grounds that “the bill threatens to politicize decisions.”

*November 20, 2024 letter to Congress by 50 groups including J Street to oppose H.R. 9495*

This hypocrisy is too rich to ignore.

On July 13, 2010, J Street called for a “Treasury investigation into settlement charities.” It claimed that “tax-exempt organizations are working to undermine a two-state solution by deepening the occupation.”

Oh my. Opposed to antisemitic laws which ban Jews – and only Jews – from living somewhere? Not that.

The head of J Street, Jeremy Ben Ami, would not relent on this Holy Grail quest and tried to push the willing ears of President Barack Obama in his fight. On September 9, 2016, Ben Ami posted an urgent plea: “J Street Calls on Treasury Department to Review Tax Deductibility of Donations to Groups Entrenching Settlements.” It stated that the best way to advance its preferred public policy goals was to terminate tax exempt status for those with different agendas.

J Street called on its supporters and all who support a just Israeli-Palestinian peace agreement to urge the US Treasury to review the tax-deductibility status of contributions to groups working to entrench or expand Israeli settlement activity in the West Bank.

J Street September 9, 2016

The call to stifle free speech and expression was obvious to all. Eugene Kontorovich wrote in Tablet Magazine on October 6, 2016 that called J Street’s action “unprecedented and clearly unconstitutional” in attacking charities “pursuing goals at odds with the foreign policy of the President.”

*Snapshot of article by Eugene Kontorovich in Tablet on October 6, 2016*

Now that a Republican president is about to take office, progressive groups are suddenly worried about politicizing the tax-exempt status of charities, an effort they had inaugurated.

And that’s a red herring as it’s not what the bill states. It is not trying to rob charities of donations for having different opinions, the bill specifically is about supporting terrorism. As laid out, “the term ‘terrorist supporting organization’ means any organization which is designated by the Secretary [of Treasury] as having provided, during the 3-year period ending on the date of such designation, material support or resources (within the meaning of section 2339B of title 18, United States Code) to an organization described in paragraph (2) (determined after the application of this paragraph to such organization) in excess of a de minimis amount.”

J Street has long fought to strip the tax-exempt status of charities operating east of the 1949 Armistice Lines (E49AL), such as a charity which provides wheelchairs for the elderly in the Old City of Jerusalem. It is now crying foul as Congress passed an act to fight terrorism, because of the long list of Palestinian terrorist groups and even longer list of its supporters.