1 00:00:00,040 --> 00:00:03,840 Speaker 1: President Donald Trump took executive action yesterday to give churches 2 00:00:03,840 --> 00:00:07,560 Speaker 1: and religious groups greater leeway to engage in politics without 3 00:00:07,680 --> 00:00:11,440 Speaker 1: risking their tax exempt status. The order directs the Internal 4 00:00:11,480 --> 00:00:14,560 Speaker 1: Revenue Service to use its discretion in the enforcement of 5 00:00:14,560 --> 00:00:17,639 Speaker 1: the law known as the Johnson Amendment, a decades old 6 00:00:17,640 --> 00:00:20,720 Speaker 1: provision of the tax code that bars many tax exempt 7 00:00:20,800 --> 00:00:25,680 Speaker 1: organizations from directly endorsing candidates for office. But what does 8 00:00:25,680 --> 00:00:29,040 Speaker 1: this order really do well? The Americans Civil Liberties Union 9 00:00:29,040 --> 00:00:31,800 Speaker 1: tweeted that we thought we'd have to sue Trump today, 10 00:00:31,840 --> 00:00:34,640 Speaker 1: but it turned out the order signing was an elaborate 11 00:00:34,680 --> 00:00:39,440 Speaker 1: photo op with no discernible policy outcome. Our guest is 12 00:00:39,479 --> 00:00:42,639 Speaker 1: Douglas Lacock. He's a professor at the University of Virginia 13 00:00:42,720 --> 00:00:46,440 Speaker 1: School of Law. Doug, what does this order do As 14 00:00:46,479 --> 00:00:50,120 Speaker 1: far as destroying the Johnson Amendment, which Trump has vowed 15 00:00:50,159 --> 00:00:55,720 Speaker 1: to do, the c U Rights doesn't do anything. Um. 16 00:00:56,680 --> 00:01:01,080 Speaker 1: The issue in the Johnson Amendment is Canada taxa exempt organization. 17 00:01:01,280 --> 00:01:05,520 Speaker 1: It's not just churches. Can a tax exempt organization endorse 18 00:01:05,560 --> 00:01:13,840 Speaker 1: the political candidate? And and the reality is if churches 19 00:01:14,080 --> 00:01:16,920 Speaker 1: endorsed candidates with some frequency in the I R S. 20 00:01:17,520 --> 00:01:19,360 Speaker 1: Job bones about it. It It tells him not to, but 21 00:01:19,480 --> 00:01:23,520 Speaker 1: it never actually tries to enforce the law. I don't 22 00:01:23,520 --> 00:01:28,040 Speaker 1: think it has any confidence that it's constitutional. The sensor sermons, UH, 23 00:01:28,080 --> 00:01:30,400 Speaker 1: if they spend money, they buy a full page ad, 24 00:01:30,840 --> 00:01:33,679 Speaker 1: they can lose their tax exemption. There's one case like that. 25 00:01:34,360 --> 00:01:39,919 Speaker 1: UM nothing in its executive border says that UM churches 26 00:01:39,959 --> 00:01:42,679 Speaker 1: can endorse candidates. It says they should be treated the 27 00:01:42,720 --> 00:01:46,440 Speaker 1: same way as other secular nonprofits, which they uh pretty 28 00:01:46,480 --> 00:01:49,760 Speaker 1: much already are. So there's nothing there's nothing new here. 29 00:01:50,400 --> 00:01:53,920 Speaker 1: So well, so what would it take though to really 30 00:01:54,040 --> 00:01:56,920 Speaker 1: change the Johnson Amendment? And if you're gonna do it, 31 00:01:57,080 --> 00:01:59,000 Speaker 1: would it you know, would it just be focused on 32 00:01:59,080 --> 00:02:02,920 Speaker 1: churches or where you felt isn't? Well, if you're gonna 33 00:02:02,960 --> 00:02:04,560 Speaker 1: do it, you ought to focus on all not for 34 00:02:04,640 --> 00:02:07,360 Speaker 1: profits because if you do it only for churches thing 35 00:02:07,400 --> 00:02:10,240 Speaker 1: you get an argument that it's a preference from religion 36 00:02:10,240 --> 00:02:14,440 Speaker 1: and it's an establishment close violation. UM. You know, there's 37 00:02:14,480 --> 00:02:16,480 Speaker 1: a bill in Congress to repeal it, which would be 38 00:02:16,480 --> 00:02:21,840 Speaker 1: a mistake. UM. In general, political contributions are not tax 39 00:02:21,840 --> 00:02:26,480 Speaker 1: deductible political contributions that churches are. So if churches could 40 00:02:26,480 --> 00:02:31,079 Speaker 1: spend money on politics. That would be a huge, huge loophole. UM. 41 00:02:31,120 --> 00:02:33,880 Speaker 1: But there's also a bill to say, look, apply to 42 00:02:33,960 --> 00:02:39,160 Speaker 1: Johnson Amendment only when the church spends money on politics, 43 00:02:39,280 --> 00:02:42,160 Speaker 1: and don't apply it to things like a sermon that 44 00:02:42,200 --> 00:02:44,600 Speaker 1: are in the ordinary course of the church's activity and 45 00:02:44,639 --> 00:02:48,000 Speaker 1: don't cost any money. Um. That's pretty much what the 46 00:02:48,000 --> 00:02:51,000 Speaker 1: i R S and force and policy has been. And 47 00:02:51,000 --> 00:02:53,120 Speaker 1: and I don't think that bill is gonna pass, but 48 00:02:53,120 --> 00:02:57,320 Speaker 1: but it could and and and that would codify the 49 00:02:57,320 --> 00:03:00,400 Speaker 1: the existing practice. But it takes congressional action to change 50 00:03:00,919 --> 00:03:05,080 Speaker 1: the Johnson Amendment. UM. The most the present could do 51 00:03:05,120 --> 00:03:09,040 Speaker 1: by executive border is UM tell the I R s 52 00:03:09,120 --> 00:03:12,080 Speaker 1: to use enforcement discretion not to enforce it. And they've 53 00:03:12,080 --> 00:03:15,480 Speaker 1: been doing that for years, Doug. What does the order do, 54 00:03:15,560 --> 00:03:19,080 Speaker 1: if anything, As far as the contraception mandate, which is 55 00:03:19,120 --> 00:03:22,920 Speaker 1: the provision of the Obamacare Act that requires health plans 56 00:03:22,919 --> 00:03:28,320 Speaker 1: and insurers to provide contraception to women, Well, it does. 57 00:03:28,960 --> 00:03:34,000 Speaker 1: It does very little there either. It it UM instructs 58 00:03:34,040 --> 00:03:39,240 Speaker 1: the secretaries of the three relevant Cabinet agencies to consider 59 00:03:39,360 --> 00:03:47,000 Speaker 1: issuing amended regulations UH to address conscience based objections. UM. 60 00:03:47,040 --> 00:03:52,960 Speaker 1: So hobby Hobby already exempts employers who don't want to 61 00:03:53,000 --> 00:03:58,920 Speaker 1: pay for contraception. UM. The only thing left is the 62 00:03:58,960 --> 00:04:01,800 Speaker 1: employers who don't want their second insurance companies to pay 63 00:04:01,840 --> 00:04:03,680 Speaker 1: for it either. That's what the Little Sisters of the 64 00:04:03,680 --> 00:04:07,400 Speaker 1: Poor case was about. UM. And maybe the three cabinet 65 00:04:07,480 --> 00:04:12,480 Speaker 1: agencies will do something about that. UM. Maybe the administration 66 00:04:12,520 --> 00:04:16,560 Speaker 1: will settle those cases on terms favorable to the religious employers. 67 00:04:16,600 --> 00:04:20,440 Speaker 1: But this executive order doesn't do anything. And and of 68 00:04:20,480 --> 00:04:23,159 Speaker 1: course the President doesn't need an executive order to ask 69 00:04:23,200 --> 00:04:26,520 Speaker 1: his cabinet officers to consider something. And that's all this 70 00:04:26,560 --> 00:04:29,520 Speaker 1: says they should consider it. So and about the thirty 71 00:04:29,560 --> 00:04:31,400 Speaker 1: seconds we have left in it, you know, some people 72 00:04:31,440 --> 00:04:35,760 Speaker 1: say that, uh, some conservative religious groups were unhappy with 73 00:04:35,800 --> 00:04:37,719 Speaker 1: this order because it didn't do that much. What is 74 00:04:37,720 --> 00:04:41,800 Speaker 1: it they'd like to see President Trump do. Well. They 75 00:04:41,839 --> 00:04:46,919 Speaker 1: would like to see a sweeping declaration to protect conscience 76 00:04:46,960 --> 00:04:53,000 Speaker 1: on all the hot button social issues, particularly discrimination against 77 00:04:53,080 --> 00:04:58,039 Speaker 1: case and transgender for federal contractors and federal employees. UM. 78 00:04:58,920 --> 00:05:01,200 Speaker 1: The wedding vendor case is the Forest and the Bakers. 79 00:05:01,200 --> 00:05:03,320 Speaker 1: Those are all state law cases. The President can't do 80 00:05:03,360 --> 00:05:07,800 Speaker 1: anything about those. But the draft back in February. Uh, 81 00:05:08,279 --> 00:05:11,440 Speaker 1: seemed to say, and nobody working for the federal government 82 00:05:11,440 --> 00:05:14,680 Speaker 1: has to serve anybody has a religious objection to and 83 00:05:14,680 --> 00:05:17,080 Speaker 1: and there's not a hint of that in this executive quarter. 84 00:05:17,680 --> 00:05:21,440 Speaker 1: Thanks for being on Bloomberg Law. That's Douglas Laycockey is 85 00:05:21,600 --> 00:05:24,560 Speaker 1: a professor at the University of Virginia School of Law. 86 00:05:24,920 --> 00:05:28,719 Speaker 1: Coming up on Bloomberg Law. It's perhaps their most popular song, 87 00:05:29,200 --> 00:05:32,440 Speaker 1: and the Eagles are protecting it and their trademark, suing 88 00:05:32,440 --> 00:05:35,520 Speaker 1: a hotel for calling itself the Hotel California