Pittenger: No Abortion Bonds Act
Today, Congressman Robert Pittenger (NC-09) formally introduced the No Abortion Bonds Act, which prohibits the use of federal tax-exempt bonds to finance construction of abortion clinics.
"Under a loophole in the current law, cities, counties, and states can issue federally tax-free bonds to finance construction of abortion clinics," explained Congressman Pittenger during a speech on the House floor. "These tax-free bonds are intended to finance schools, hospitals, and infrastructure, not abortion clinics. This legislation applies the spirit of the Hyde Amendment to the tax code, by preventing tax-free bonds from going to abortion providers."
In 2012, New York City issued a tax-free, $15 million bond for renovation of Planned Parenthood's national headquarters.
In 2007, Sarasota County, Florida floated an $8 million, tax-free bond to pay for a Planned Parenthood abortion clinic.
In 2007, the Illinois Finance Authority approved an $8.05 million tax-free bond to pay for a Planned Parenthood abortion clinic in Aurora.
In 2006, the Massachusetts Development Finance Agency granted a $5 million tax-exempt bond for a Planned Parenthood clinic in Worcester.
State and local governments are allowed to finance construction of schools, roads, and hospitals with special bonds exempt from federal tax. These tax breaks for the investors, which cost the federal government billions in revenue, lead to lower costs for the borrower. Federal taxpayers therefore subsidize the project, in addition to being ultimately responsible for the loan should the borrower fail to pay.
While the 1976 Hyde Amendment prohibits the use of taxpayer-funding for abortion or abortion-related services, a loophole allows these infrastructure bonds to be used for abortion clinics.
Congressman Pittenger's No Abortion Bonds Act:
Removes the tax-exempt status of any bond that flows to an abortion provider or abortion clinic.
Includes exemption for clinics that only perform abortions in cases of rape, incest, or danger to the life of the mother.
Includes common sense exemption for hospitals.
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