2001 Ron Paul 60:1
Mr. PAUL.
Mr. Speaker, no
one familiar with the history of the past century can doubt that
private charities, particularly those maintained by persons motivated
by their faith to perform charitable acts, are more effective in
addressing social needs than federal programs. Therefore, the sponsors
of HR 7, the Community Solutions Act, are correct to believe that
expanding the role of voluntary, religious-based organizations will
benefit society. However, this noble goal will not be accomplished by
providing federal taxpayer funds to these organizations. Instead,
federal funding will transform these organizations into adjuncts of the
federal government and reduce voluntary giving on the part of the
people. In so doing, HR 7 will transform the majority of private
charities into carbon copies of failed federal welfare programs.
2001 Ron Paul 60:2
Providing
federal
funds to religious organizations gives the organizations an incentive
to make obedience to federal bureaucrats their number-one priority.
Religious entities may even change the religious character of their
programs in order to please their new federal paymaster. Faith-based
organizations may find federal funding diminishes their private support
as people who currently voluntarily support religious organizations
assume they gave at the (tax) office and will thus reduce their
levels of private giving. Thus, religious organizations will become
increasingly dependent on federal funds for support. Since he who
pays the piper calls the tune federal bureaucrats and Congress will
then control the content of faith-based programs.
2001 Ron Paul 60:3
Those who
dismiss
these concerns should consider that HR 7 explicitly forbids
proselytizing in faith-based programs receiving funds directly from
the federal government. Religious organizations will not have to remove
religious icons from their premises in order to receive federal funds.
However, I fail to see the point in allowing a Catholic soup kitchen to
hang a crucifix on its wall or a Jewish day care center to hang a Star
of David on its door if federal law forbids believers from explaining
the meaning of those symbols to persons receiving assistance.
Furthermore, proselytizing is what is at the very heart of the
effectiveness of many of these programs!
2001 Ron Paul 60:4
H.R. 7
also
imposes new paperwork and audit requirements on religious
organizations, thus diverting resources away from fulfilling the
charitable mission. Supporters of HR 7 point out that any organization
that finds the conditions imposed by the federal government too onerous
does not have to accept federal grants. It is true no charity has to
accept federal grants. It is true no charity has to accept federal
funds, but a significant number will accept federal funds in exchange
for federal restrictions on their programs, especially since the
restrictions will appear reasonable during the programs first few
years. Of course, history shows that Congress and the federal
bureaucracy cannot resist imposing new mandates on recipients of
federal money. For example, since the passage of the Higher Education
Act the federal government has gradually assumed control over almost
every aspect of campus life.
2001 Ron Paul 60:5
Just as
bad money
drives out good, government-funded charities will overshadow government
charities that remain independent of federal funding. After all, a
federally-funded charity has the governments stamp of approval and
also does not have to devote resources to appealing to the consciences
of parishioners for donations. Instead, government-funded charities can
rely on forced contributions from the taxpayers. Those who dismiss this
as unlikely to occur should remember that there are only three
institutions of higher education today that do not accept federal funds
and thus do not have to obey federal regulations.
2001 Ron Paul 60:6
We have
seen how
federal funding corrupts charity in our time. Since the Great Society,
many organizations which once were devoted to helping the poor have
instead become lobbyists for ever-expanding government, since a bigger
welfare state means more power for their organizations. Furthermore,
many charitable organizations have devoted resources to partisan
politics as part of coalitions dedicated to expanding federal control
over the American people.
2001 Ron Paul 60:7
Federally-funded
social welfare organizations are inevitably less effective than their
counterparts because federal funding changes the incentives of
participants in these organizations. Voluntary charities promote
self-reliance, while government welfare programs foster dependency. In
fact, it is in the self-interests of the bureaucrats and politicians
who control the welfare state to encourage dependency. After all, when
a private organization moves a person off welfare, the organization has
fulfilled its mission and proved its worth to donors. In contrast, when
people leave government welfare programs, they have deprived federal
bureaucrats of power and of a justification for a larger amount of
taxpayer funding.
2001 Ron Paul 60:8
Accepting
federal
funds will corrupt religious institutions in a fundamental manner.
Religious institutions provide charity services because they are
commanded to by their faith. However, when religious organizations
accept federal funding promoting the faith may take a back seat to
fulfilling the secular goals of politicians and bureaucrats.
2001 Ron Paul 60:9
Some
supporters of
this measure have attempted to invoke the legacy of the founding
fathers in support of this legislation. Of course, the founders
recognized the importance of religion in a free society, but not as an
adjunct of the state. Instead, the founders hoped a religious people
would resist any attempts by the state to encroach on the proper social
authority of the church. The Founding Fathers would have been horrified
by any proposal to put churches on the federal dole, as this threatens
liberty by subordinating churches to the state.
2001 Ron Paul 60:10
Obviously,
making
religious institutions dependent on federal funds (and subject to
federal regulations) violates the spirit, if not the letter, of the
first amendment. Critics of this legislation are also correct to point
out that this bill violates the first amendment by forcing taxpayers to
subsidize religious organizations whose principles they do not believe.
However, many of these critics are inconsistent in
that they support using the taxing power to force religious citizens
to subsidize secular organizations.
2001 Ron Paul 60:11
The primary issue both
sides of this debate are avoiding is the constitutionality of the
welfare state. Nowhere in the Constitution is the federal government
given the power to level excessive taxes on one group of citizens for
the benefit of another group of citizens. Many of the founders would
have been horrified to see modern politicians define compassion as
giving away other peoples money stolen through confiscatory taxation.
After all, the words of the famous essay by former Congressman Davy
Crockett, that money is Not Yours to Give.
2001 Ron Paul 60:12
Instead of
expanding the unconstitutional welfare state, Congress should focus on
returning control over welfare to the American people. As Marvin
Olaksy, the godfather of compassionate conservatism, and others
have amply documented, before they were crowded out by federal
programs, private charities did an exemplary job at providing necessary
assistance to those in need. These charities not only met the material
needs of those in poverty but helped break many of the bad habits, such
as alcoholism, taught them marketable skills or otherwise engaged
them in productive activity, and helped them move up the economic
ladder.
2001 Ron Paul 60:13
Therefore, it is
clear that instead of expanding the unconstitutional welfare state,
Congress should return control over charitable giving to the American
people by reducing the tax burden. This is why I strongly support the
tax cut provisions of H.R. 7, and would enthusiastically support them
if they were brought before the House as a stand alone bill. I also
proposed a substitute amendment which would have given every taxpayer
in America a $5,000 tax credit for contributions to social services
organizations which serve lower-income people. Allowing people to use
more of their own money promotes effective charity by ensuring that
charities remain true to their core mission. After all, individual
donors will likely limit their support to those groups with a proven
track record of helping the poor, whereas government agencies may
support organizations more effective at complying with federal
regulations or acquiring political influence than actually serving the
needy.
2001 Ron Paul 60:14
Many
prominent
defenders of the free society and advocates of increasing the role of
faith-based institutions in providing services to the needy have also
expressed skepticism regarding giving federal money to religious
organizations, including the Reverend Pat Robinson, the Reverend Jerry
Falwell, Star Parker, Founder and President of the Coalition for Urban
Renewal (CURE), Father Robert Sirico, President of the Action Institute
for Religious Liberty, Michael Tanner, Director of Health and Welfare
studies at the CATO Institute, and Lew Rockwell, founder and president
of the Ludwig Von Misses Institute. Even Marvin Olaksy, the
above-referenced godfather of compassionate conservatism, has
expressed skepticism regarding this proposal.
2001 Ron Paul 60:15
In
conclusion, Mr.
Speaker, because H.R. 7 extends the reach of the immoral,
unconstitutional welfare state and thus threatens the autonomy and the
effectiveness of the very faith-based charities it claims to help, I
urge my colleagues to reject it. Instead, I hope my colleagues will
join me in supporting a constitutional and compassionate agenda of
returning control over charity to the American people through large tax
cuts and tax credits.
This chapter appeared in Ron Pauls Congressional website at http://www.house.gov/paul/congrec/congrec2001/cr071901.htm