September 26, 1985 CONGRESSIONAL RECORD--SENATE S12171

Mr. HELMS. Mr. President, I send an amendment to the desk and ask for its immediate consideration. I believe this amendment has been agreed to on both sides.

The PRESIDING OFFICER. The clerk will report.

The assistant legislative clerk read as follows:

The Senator from North Carolina [Mr. HELMS] proposes an amendment numbered 705.

On page 14, after line 10, insert the following new section:

SEC. . No funds appropriated under this Act shall be used to grant,
maintain, or allow tax exemption to any cult, organization, or other
group that has as a purpose, or that has any interest in, the promoting
of satanism or witchcraft: Provided, That for the purposes of this
section, "satanism" is defined as the worship of Satan or the powers of
evil and "witchcraft" is defined as the use of powers derived from evil
spirits, the use of sorcery, or the use of supernatural powers with
malicious intent.

Mr. HELMS. Mr. President, there is widespread concern across the country
as result of the growth of cults, satanism, witchcraft, sorcery, and the like. These have been countless tragic cases of young people committing suicide or becoming involved in violent religious rituals as a result of an attraction to what can generally be described as the occult.

Mr. President, let me offer an example. On May 16 of this year, the ABC news program 20/20 focused on this problem. To get the full impact of the parade of horrors presented that night one needs to have seen the actual program. But a few quotes from the lead-in to the story provides the gist of what is being described. ABC newsman Tom Jarriel began this way:

Dateline: Northport, Long Island. A quiet community rocked by
reports a teenager was dragged through these woods toward a late-night
ritual of death. An eyewitness said the victim, Gary Lauwers, was
forced to pray to Satan as he was repeatedly stabbed to death. Two
young men were arrested. James Trovana was found innocent last month,
but his alleged accomplice never made it to trail. Ricky Casso committed
suicide in jail the day after his arrest. Despite numerous signs that
Casso was into satanism and rock music associated with devil worship,
police steadfastly refused to label this case satanic. The official
explanation: a drug related crime.

Dateline: Phoenix, Arizona. On hundred forty dogs found slaughtered.
Across the country, police tell us there have been more than 15,000
animal mutilations and often they were clearly used in some kind of
bizarre ritual. But there's no official explanation.

Mr. President, I ask unanimous consent that the full text of the 20/20 segment entitled, "The Devil Worshippers," be printed at this point in the RECORD.

There being no objection, the material was ordered to be printed in the RECORD, as follows:

20/20--MAY 16, 1985

HUGH DOWNS. Good evening. I'm Hugh Downs. And this is 20/20.

ANNOUNCER. On the ABC Newsmagazine, 20/20, with Hugh Downs and
Barbara Walters.

DOWNS. Tonight, the startling, sobering results of a 20/20
investigation. Satanism, devil worship, being practiced all across the
country.

GRIFFIS. We have all types perversion going on, and its affecting
America.

DOWNS [voice over]. Perverse, hideous acts that defy belief.
Suicides, murders, and the ritualistic slaughter of children and
animals. Yet so far the police have been helpless.

SANDI GALLANT. The problem that exists is we're getting the stories
but we don't have the victims.

DOWNS [voice over]. Our report comes after questions by 20/20
viewers. Tom Jarriel, with signs of and testimony about "The Devil
Worshippers."
And Hugh Hefner and Peter Bogdanovich once seemed like good friends.
Both work in fantasy worlds. Hefner chooses pinups. Bogdanovich makes
movies. Now they're blaming each other for Playmate Dorothy Stratten's
death. It's a wild feud, fueled by ego and power. Geraldo Rivera, with
some surprising facts and the truth behind a case of "Smear and
Obsession."

[commercial break]

DOWNS. Up front tonight, a 20/20 investigation. You know, the
stories we air originate in many ways and for many reasons. Some ideas,
as I'm sure you're aware, come through the mail, from you, often
involving issues of deep concern. And that's the case with our first
story of this evening. There have been a series of criminal acts
reported around the country that have had unique characteristics that
linked them together. And the source of all this is the apparent
practice of satanism. That's worship of the devil. Now, police have
been skeptical when investigating these acts, just as we are in
reporting them. But there is no question that something is going on out
there, and that's sufficient reason for 20/20 to look into it. One
caution: we believe that some of the pictures and descriptions in Tom
Jarriel's report may be disturbing, particularly to young viewers. Here
is Tom's report.

TOM JARRIEL [voice over]. Dateline: Northport, Long Island. A quiet
community rocked by reports a teenager was dragged through these woods
toward a late-night ritual of death. An eyewitness said the victim,
Gary Lauwers, was forced to pray to Satan as he was repeatedly stabbed
to death. Two young men were arrested. James Trovana was found
innocent last month, but his alleged accomplice never made it to trail.
Ricky Casso committed suicide in jail the day after his arrest. Despite
numerous signs that Casso was into satanism and rock music associated
with devil worship, police steadfastly refused to label this case
satanic. The official explanation: a drug related crime.

Dateline: Phoenix, Arizona. On hundred forty dogs found slaughtered.
Across the country, police tell us there have been more than 15,000
animal mutilations and often they were clearly used in some kind of
bizarre ritual. But there's no official explanation.

Dateline: Walnut Grove, Alabama. Police are called in to investigate
the site of what appears to have been a ritual. They find various
satanic paraphernalia, including pictures of the devil. There was a
routine inquiry which didn't discover what was going on here.

Across this country and Canada, satanic graffiti is turning up on
public buildings and abandoned buildings, where police suspect secret
meetings are held by people calling themselves satanists, people who
worship the devil. Most often found: the inverted five-pointed satanic
pentagram, the upside-down cross, the evil eye, references to Babylon
and the devil's number, 666. Vandals often target churches. Here in
southern Maine, after a dozen churches were painted with satanic
symbols, police arrested a suspect. Although vandalism charges were
later dropped, he offered an explanation for the church graffiti from
behind a locked door.

MAN. Anyone that receives the mark of the beast, which is 666 is his
number, is going to burn in hell forever and ever.

JARRIEL. [voice over]. It's the way some people interpret the
Bible, the book of Revelations, where it's written: "Satan can be
identified by the number 666, calling him the beast, which deceiveth the
whole world." The goat's head is a key symbol of the Beast. Yet
throughout history, Satan has taken on many different shapes and
disguises. He's widely considered by conventional religions as the
embodiment of evil on a mission to tempt man to sin and destroy God's
kingdom. Today we have found Satan is alive and thriving, or at least
plenty of people believe he is. His followers are extremely secretive,
but found in all walks of life. Modern satanism was shockingly
dramatized on the screen in the mid-'60s with the release of Rosemary's
Baby. It's a move that's been described as the best advertisement that
devil worship has ever had.

[clip from Rosemary's baby]

JARRIEL. [voice over]. The zeal of these fictional devil
worshippers is strikingly similar to that of real-life satanists. Mike
Warnke is a former satanist. Today he's a successful comedian,
preaching Christianity in the form of humor. But back in the '60s he
was one of satanism's high priests. He showed us what a satanic temple
might resemble and typical implements used to worship the devil.

MIKE WARNKE, former satanic priest. The bones usually are used in a
ceremony that calls for telling the future with the bones or a part of
the deceased person.

JARRIEL. [voice over]. He also explained what attracted him to
satanism.

Mr. WARNKE. I was basically drawn into it when I was young just
wanting to be someone special. I just wanted to be different than
everybody and have something that was special that everybody, you know,
looked up to.

JARRIEL. [voice over] This is a 15-year-old boy who also wanted to
be special. Before hanging himself he wrote on his body, "I'm coming
home, master" and "Satan lives" and "666." It was a case with such
clear satanic symbols, it brought two police officers together. Sandi
Gallant is one of them. She's a San Francisco policewoman, and now a
leading authority on satanic crime, a specialty other cops often scoff
at.

SANDI GALLANT, police intelligence officer. As time goes on, maybe
my work gets a little more credibility. There's one guy that still
walks around and when he sees me he goes like this [symbol of horns]
wherever he goes. But I've gotten pretty much used to that.

JARRIEL. [voice over]. America is being affected. Nationwide we
found that minor cases of satanic activity light up the map. Not a
single state is unaffected. But even more frightening is the number of
reported murders and suicides with satanic clues. All of them were
investigated by police, but usually without much result. We found that
satanism falls into three categories. One, self-styled satanists: a
growing number of young people who dabble in devil worship. Two,
religious satanists: people who publicly worship the devil, a right
that's protected by law. And three, satanic cults: what appear to be
highly secretive groups commiting criminal acts, including murder.

First, let's examine self-styled satanists like Ricky Casso. Often
they're teenagers who learned that the message of satanism is for sale
right in the neighborhood.

[On camera]. This shopping mall in affluent Westchester County in
New Y ork exemplifies how easy it is for children, or adults for that
matter, to get their hands on satanic material. We stress it's
perfectly legal, and these are typical commercial outlets you'll find
just about anywhere. Three stores side by side: a bookstore, a music
store, a videotape center, each offering seemingly harmless types of
entertainment like movies. Here at the neighborhood videotape store,
take a look at the number of movies that involve satanism. Most were
popular films in their day, but even today if one is inclined to believe
in satanism, it's a way to actually see the devil and perhaps be
inspired.

[voice over]. In The Exorcist it is the tremendous power of the devil
himself controlling a little girl's body against the will of a priest
that makes the movie still one of the most popular examples of evil
versus good.

[clip from "The Exorcist"]

Mr. WARNKE. It wasn't that a demon jumped out of the TV and grabbed
me by the face and dragged me down the road and forced me to join the
Church of Satan. It was just that there were certain things in this
program that piqued my interest, and then I decided to study more on my
own. And if the devil has PR, then it is, you know, cinema.

JARRIEL [voice-over]. Then there's also the satanic literature,
which includes many books that are sold in bookstores [on camera]
Librarians point out that they're among the most popular books on their
shelves. Here, as in almost any bookstore, you'll find both The Satanic
Bible and its companion, The Satanic Rituals, a step-by-step guide is
performing evil rites.

Mr. WARNKE. Kids get their ideas, especially their psychological
pumping up, so to speak, from the literature. And books play an
extremely important part.

JARRIEL. And finally, music, which is found here in the neighborhood
record store under the category of heavy metal music. The satanic
message comes across loud and clear, at concerts and now through rock
videos. The symbolism is all there: the satanic pentagram, the
upside-down cross, the blank eyes of the beast, the rebellion against
Christianity, and again and again, the obsession with death. According
to most groups, it's all done in fun. But according to police it's
having an effect on many children, a growing subculture that mixes heavy
metal music with drugs and the occult. In addition to groups that are
blatantly satanic, there also many recordings which some believe may
contain satanic references in the form of backward messages.

[interviewing]. What's a popular song that has a reference to the
devil in it?

[voice-over]. Chris Edmonds is a Detroit disk jockey whose specialty
is finding secret recorded messages exhorting the devil by playing music
popular with kids in reverse, a technique they've learned to use.

CHRIS, EDMONDS, disk jocket. Okay, the phrase we're looking for is
"and there's still to change the road you're on."

JARRIEL. Now flip it for us.

Mr. EDMONDS. A lot of people hear the phrase "my sweet Satan."
Here, we'll play this back. Here it? "My sweet Satan."

JARRIEL [to Mr. Griffis]. How often do you find heavy metal music
indicators at the scene of a crime involving satanic worship?

Mr. GRIFFIS. Probably about 35%, 40% of the calls.

JARRIEL. Regularly.

Mr. GRIFFIS. Yes.

JARRIEL. [voice-over]. This art work is from a homicide case that
combined heavy metal music with self-styled satanism. It's the work of
18-year-old Scott Waterhouse, a so-called satanist whose drawings
clearly show he had murder on his mind. He's now serving a life prison
term for the slaying of 12-year-old Giselle Cody. Before this case,
officers here at the local police station in Sanford, Maine, had never
even heard about satanic crimes. But that's all changed. The officer
who broke the case was state Detective Moe Ouellette.

[interviewing]. When you reached the crime scene, what did you find?

MOE QUELLETTE, police detective. When I reached the crime scene, the
local police had cordoned the area off, showed me the bank and where the
young lady was found. She was probably killed right there at that
particular area. She was strangled.

JARRIEL [voice-over]. Waterhouse was seen leaving the crime scene.
And in a deposition, when he was later questioned by Officer Ouellette,
he seemd almost proud to boast. "I'm a satanist." Waterhouse also
described how he first became involved in it. "In a bookstore, my
friend hit the shelf and a book fell out, and I caught it, and it had a
pretty weird-looking guy on the back." The book was The Satanic Bible,
by Anton LaVey. After Scott Waterhouse's trial, both the prosecution
and the victim's father claimed that although The Satanic Bible did not
condone violence, Waterhouse had interpreted it that way.

JOHN COTE, father of the victim. The book made you feel do what you
want to and the heck with everybody, more or less. And I believe that
that had a lot to do with it.

MICHAEL WESTCOTT, Assistant Attorney General. It tries to make
itself innocuous, but if you actually read it and believe it to the
letter, it's a very dangerous manifesto.

JARRIEL [voice over]. The author of The Satanic Bible, Anton LaVey,
is a former lion tamer and palm reader, who in 1966 founded the First
Church of Satan. It quickly became the country's most prominent satanic
organization, fully protected as a religion under the law.

ANTON LAVEY, founder, Church of Satan. This is a very selfish
religion. We believe in greed, we believe in selfishness, we believe in
all the lustful thoughts that motivate man, because this is man's
natural feeling. This is based on what man naturally would do.

JARRIEL [voice over]. The Church of Satan and other organized devil
worship groups represent our second category; religious satanists.
Although LaVey would not talk to me, we can get a glimpse of his
theories and his rituals in the 1970 documentary on his church.

Mr. LAVEY. We feel a person should be free to indulge in all his
so-called fetishes that they would desire, as long as they don't hurt
anyone that doesn't deserve or wish to be hurt.

CHURCH MEMBERS. Hail Satan!

Mr. LAVEY. We perform human sacrifices, by proxy you might say, the
destruction of human beings who would, let's say, create an antagonistic
situation towards us, in the form of curses and hexes, not in actual
blood rituals because certainly the destruction of a human being
physically is illegal.

JARRIEL [voice over]. Police we spoke to say they have made a link
between this satanic church and the satanic crimes being committed.
However, some incidents described to us by witnesses from around the
country are strikingly similar to these ritualistic scenes. For
example, the ritualistic embracing of death--actually being placed
inside a coffin containing a body. Or ritualistic sacrifice--using a
voodo-type doll to place a curse on an unsuspecting victim. It's
nothing that can be called physically harmful or illegal.

Although not connected to the Church of Satan, these 12-year-old
boys, with their parents' consent, demonstrated how they were taught to
inflict pain on their enemies. They also claim they witnessed
sacrificial murder by members of our third category of satinism, satanic
cults. Police have found no proof, made no arrests. But that's no
surprise, for, nationwide, police are hearing strikingly similar horror
stories, and not one has ever been proved. Take for example, the mother
of a young victim who asked not to be identified.

MOTHER of alleged participant. Usually they have the children kill
the infants or the other kids.

JARRIEL. The children who were there, actually, what, were given
knives?

MOTHER. Yes, they were. And if they refused to do it, usually the
child's father or mother would take the child's hand and make them kill
the child.

JARRIEL [voice over]. There's also this similar case that links
child sex abuse with murder.

GRANDMOTHER of alleged participants. The children were given--were
given knives and told to go and stab those bodies. And my grandchildren
told me they couldn't do that, that it wasn't possible, that they could
only get the knives in about that far. And then the adults put their
hands over the children's hands and shoved the knives in.

JARRIEL. Was there any reference to the devil?

GIRL. Yes.

JARIEL. Yes.

[voice over] And this case now under police investigation involving
young boys describing murders.

[interviewing] Tell me what you were asked to do.

1st BOY. I was asked to stab him.

JARIEL. To stab him. And this was in front of other people who were
there? Were you given a knife?

1st BOY. Yes.

JARIEL. And you were told what would happen to you if you didn't?

1st BOY. Uh-huh.

JARIEL. Do you remember what they said?

1st BOY. "This will happen to you."

JARIEL. So you either stab him or you'll be stabbed, was about what
it came down to?

[to mother] When the oldest boy describes stabbing with the knife,
what's his reaction?

MOTHER. It's a hard, hard thing for him to say. He's been more apt
to act it out.

JARIEL. Do you remember his eyes?

[voice over] With their guardians' consent, the boys a doll to
illustrate what they did.

[interviewing] So you were given the knife, and then what did you
do?

1st BOY. I went like this.

JARIEL. Did you push the knife all the way in deep, or did you just
touch the skin?

1st BOY. All the way in deep.

JARIEL. In deep. Were you in the room when this was going on? Did
you see what happened to the child that was stuck with the knife?

2nd BOY. Yeah.

JARIEL. What do you remember?

2nd BOY. All blood.

JARIEL. [voice over]. Ritualistic murder has become a specialty for
San Francisco's chief medical examiner.

[interviewing] Are local investigators really prepared, equipped?
Do they know what to look for when investigating these cases?

Dr. BOYD STEPHENS, medical examiner. No, I don't think they do.
Even though we're--many different people are trying to get out the
message about ritualistic or funny types of killings, first of all, just
on their face value, they sound so unusual or bizarre that most people
hearing that message really don't think that it's true.

JARIEL. [voice over]. It's bizarre and hard to prove. Yet the
tales that were told to us in interviews conducted across the country
were later verified by authorities, who say that there are consistent
telltale clues. And they provide a checklist of six satanic practices
to look for. For example, being placed inside a coffin. It's an
experience that many children are describing.

MOTHER. Well, the adults will dig up the caskets from the
graveyards, and all the members, including the children, were made to
lay in the remains of whatever was in the casket.

JARIEL. Get in a casket with a decomposed body?

MOTHER. Right. And then the casket was closed and they would be
lowered into the ground while they were in the casket.

JARIEL. [voice over]. The author of a popular book on satanism, Dr.
Laurence Pazder.

Dr. LAURENCE PAZDER, psychiatrist. Children are involved in
graveyards, in crematorias, in funeral parlors, because one of the
primary focuses of these people is death. Everything is attempted to be
destroyed and killed in that child and in that society, everything of
goodnesss. And death is a major preoccupation.

JARRIEL [voice-over]. Another indicator: satanic paraphernalia. In
every case the children talk about precisely the same setting.

GRANDMOTHER. They described a satanic goat's head being on the wall
over the table. They described a lot of candles. And they described
people in black and white robes with hoods.

JARRIEL [to Mr. Warnke]. The hood, Mike, what's this for?

Mr. WARNKE. This is to create for whoever's practicing a magical
atmosphere.

JARRIEL. Do the colors mean anything?

Mr. WARNKE. Yeah, the red ones would be used for some types of
sexual rituals, people who are doing sexual magic. This would be used
for ordinary ceremonies and also for ceremonies where you'd be throwing
a curse on somebody.

JARRIEL [voice-over]. Another indicator: kidnapping. In almost
every case the children have talked about children who were snatched and
later sacrificed.

MOTHER. They were taught to aid in the kidnapping of children. What
they would do is the kids would go and play with the children and then
tell them that they were either going to a party or that there were some
toys or whatever, and get them so that they weren't on the move, and
then her father and other members would grab the kid.

JARRIEL [to Ms. Gallant]. Do you find missing children sometimes
fall prey to these people?

Ms. GALLANT. I believe that they do. We can't prove that they do.
But as a law enforcement officer, I question two million children
missing in the United States, know that many, many of those are not
runaways and are so young that they couldn't run away anyway.

JARRIEL [voice-over]. Number four: sexual abuse aimed at destroying
faith in God. It's being described by numerous children.

[Interviewing.] What were the parallels with what the boys have told
you and the worship of Satan?

MOTHER. Well, first of all, the sexual abuse, the pornography, which
always seems to go hand in hand. The boys talked about how these people
actually said: "I hate God," and they used a very deep voice when they
talked about that.

Dr. PAZDER. One of the primary aims is to destroy a belief system
within a child, to make a child turn against what they believe in, in
terms of who they are, of who God is, and to desecrate all manner of
flesh, all manner of church institution, all manner of sign and symbol
that a child could in any way be attached to.

JARRIEL [voice-over]. Cannibalism. It's difficult to believe, but
in every case we examined, children described it.

GRANDMOTHER. The hearts were cut out, and the children were made to
chew pieces of these children's hearts, pieces of their flesh.

JARRIEL [to Ms. Gallant]. Is cannibalism part of the ritual?

Ms. GALLANT. The children have spoken about this in almost every
instance. Also human feces, or drinking the urine or drinking human
blood.

JARRIEL. That's part of the ritual.

Ms. GALLANT. Right.

Mr. WARNKE. I have an old three-inch scar here on my wrist where my
friends used to cut my arm open and bleed my blood into a cup and drink
it mixed with urine four times a year as a ceremony to Satan.

JARRIEL [voice-over]. And finally, cremation. Most of the children
describe witnessing it. It might explain why no bodies have been found.
So far police have failed to make the connection, as in the case of yet
another youngster who, with his mother's consent, described how bodies
were disposed of.

3rd BOY. He would take the bodies and put a trash bag over the feet
and head. He put--and then what he would do is had his car parked out
back. So he took him to a funeral home, and they got--they were
cremated and nobody ever knew anything about the bodies.

Dr. PAZDER. These people cover their tracks very well. When they
dispose of a body, they use that body as well. They will use, as I
said, they will cremate that body, they will use the ashes that will
become part of what they will continue to present to that particular
group, and they will disperse that. They're not going to do some simple
murder and leave a body in a stream for you to pick up the pieces of it.

JARRIEL [voice-over]. Six clues that point to the illegal worship of
Satan, each based on the testimony of children, and none of it has ever
been proved.

Ms. GALLANT. The problem that exists is we're getting the stories,
but we don't have the victims. Once it's proven with one case, it's
going to add more credibility to each one of the other cases.

JARRIEL [voice-over]. Until that one is proved, the link between
crime and satanic cults will remain speculative. The victims in this
report did break the grip of satanism, but each is left with permanent
scars, and experts say they were lucky to escape.

Mr. GRIFFIS. When you get into one of these groups, there's only a
couple of ways you can get out. One is death. The other is mental
institutions. Or third, you can't get out.

WALTERS. That's terrifying, and that's no choice.

JARRIEL. Serious business.

WALTERS. If the police were aware of this, it might be that they
could get to the instigators, to the top people. Why isn't there more
awareness on the part of the police?

JARRIEL. Police are very reluctant to investigate these crimes as
satanic crimes, Barbara, because communities quite naturally don't want
their reputations stigmatized as being the home of the devil. They
prefer to try to categorize them as drug-related crimes, sex-related
crimes or robbery or something that they're more familiar with.

WALTERS. Individual rather than finding out who's behind it. Look,
if this happens to your kid, or if you look at this and you have
children and you say, "Could this happen to my kid out of some kind of
rebellion?" how would a parent be aware?

JARRIEL. Many youngsters are into it, teenagers and younger. And
the clues are there, the satanic symbol--666. If you see that written
on your child's notebook, if they're into heavy metal rock music, if
they're associating with strange characters or drifting off to
ceremonies and not explaining where they're at, it's well worth it to
parents to look deeper and ask, "What exactly are you up to?"

WALTERS. And with whom.

JARRIEL. Because this is serious.

WALTERS. It could be harmless. It could just be a diversion. But
it could also be deadly serious.

JARRIEL. Absolutely.

WALTERS. Fascinating and horrifying report. Thank you for bringing
it to us.

Mr. HELMS. Mr. President, it was because of reports such as this ABC news production on satanism that I took particular note of a letter from a constituent back in the fall of 1982. The contituent asked if a particular group, known to be explicitly promoting witchcraft, has been given tax-exempt status by the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code.

I wrote the IRS to find out. To my astonishment, the IRS told me that yes, indeed; the particular group in question had been granted tax-exempt status as if it were an ordinary bona fide church. This original response was dated December 17, 1982, and it was from Tully Miller, Acting District Director, Internal Revenue Service, Atlanta, GA.

On February 10, 1983, I wrote the then Secretary of the Treasury, Don Regan about this matter--the Secretary's jurisdiction, of course, includes the IRS.
I asked Secretary Regan (1) if the IRS District Director's view was correct, (2) if this had always been IRS policy since the enactment of section 501(c)(3), and (3) if so, on what legislative history it was based. After
many inquiries over a 2-year period, I finally got an answer dated May 24, 1985. By then, Mr. Regan had become White House chief of staff. The response to my inquiry was signed by Mikel M. Rollyson, tax legislative counsel, Office of the Secretary of the Treasury. It basically confirmed the earlier letter from the IRS District Director.

Then on June 17 of this year, I wrote Treasury Secretary James A. Baker
III, to ask for his personal consideration of this matter. He obliged me in this request, and I received his reply dated July 19, 1985.

Unfortunately, however, Mr. Baker basically confirmed the earlier letters I had received. Among other things, he wrote:

Under the standards (used by the IRS for determining religous
exemptions), several organizations have been recognized as tax-exempt
that espouse a system of beliefs, rituals, and practices, derived in
part from pre-Christian Celtic and Welsh traditions, which they label a
"witchcraft.

Thus, the Secretary of the Treasury confirmed for me the fact that the IRS has and will grant tax-exempt status as a religious organization to groups explicitly promoting witchcraft.

Mr. President, I ask unanimous consent that Secretary Baker's letter to me of July 19, 1985, be printed at this point in the RECORD.

There being no objection, the letter was ordered to be printed in the RECORD, as follows:

THE SECRETARY OF THE TREASURY
Washington, DC, July 19, 1985.

Hon. JESSE A. HELMS, U.S. Senate, Washington, DC.

DEAR JESSE: In a letter dated June 17, 1985, you asked me to
consider whether section 501(c)(3) of the Internal Revenue Code would
permit a group that practices "witchcraft" as a religion to be treated
as tax-exempt.

You expressed special concern about recent reports linking violent
crime to so-called satanic cults. You are absolutely right--neither the
Reagan Administration, Jim Baker, nor the Internal Revenue Service will
provide tax incentives for conduct which leads to violent crime.

Section 501(c)(3) of the Code exempts from Federal income taxation any
entity that is organized and operated exclusively for religious
purposes. As a conscious policy decision, the Code and the applicable
Treasury regulations do not attempt further to define what religious
purposes are. This decision, which reflects the First Amendment to the
Constitution and its interpretation by the courts, has withstood the
test of time.

The Service does not simply accept a claim of religious belief at
face value in making determinations under section 501(c)(3). Instead,
it makes two inquiries. The first is whether the organization's
practices or rituals are illegal or are contrary to clearly defined
public policy. The second is whether the asserted beliefs are sincerely
held by those professing to follow them.

These standards guarantee that the Service will operate
impartially--and will be understood by religious groups and the public
to do so--in administering the tax exemption rules. Under the
standards, several organizations have been recognized as tax-exempt that
espouse a system of beliefs, rituals, and practices, derived in part
from pre-Christian Celtic and Welsh traditions, which they label as
"witchcraft." we have no evidence that any of the organizations have
either engaged in or promoted any illegal activity. (One of the
organizations was in fact subject to an on-site audit several years
after it received an exemption letter; the agent found no basis for any
change in tax-exempt status.)

In contrast, the Service has not hesitated to deny recognition of
tax-exempt status to organizations that claim to be churches but engage
in criminal activity. For example, the Service has denied exemption to
an organization promoting drug use during its rituals and revoked the
tax-exempt status of a purported church found to be involved in drug
smuggling. Our records also indicate that an organization that espoused
devil-worship, black magic, and other satanic rituals failed to meet
several of the requirements for tax-exempt status and was denied an
exemption under section 501(c)(3).

You enclosed with your letter a transcript of a television segment
dealing with cults, violence, and drug-induced rituals. The Service's
published cumulative list of tax-exempt organizations does not indicate
that the Service has approved a tax exemption for either of the
so-called "satanic churches" named in the transcript.

As you know, churches need not file an application for recognition of
exemption or any annual returns. Thus, I cannot assure you that some
organization of which the Service has no knowledge may not be improperly
claiming a tax exemption. The Service maintains an ongoing examination
program to assure that organizations continue to comply with the
requirements for tax exemption. Churches are subject to special
statutory rules, enacted by Congress last year, that limit and restrict
church contacts and examinations by the Service.

I am satisfied that present law, as administered by the Service, is
effective to deny tax exemption to any organization that seeks a subsidy
for promotion of illegal activity, without infringing on the rights of
citizens guaranteed by the First Amendment. I hope this letter puts
your concerns to rest.

Sincerely,
JAMES A. BAKER III.

Mr. HELMS. Mr. President, despite the reasoning of the Secretary, I simply cannot believe that Congress ever intended for section 501(c)(3) of the Internal Revenue Code be used to promote witchcraft or other cult-related activities through the granting of tax-exempt status. To whatever extent such activities occur in this country, they certainly should not besubsidized-- directly or indirectly--by the U.S. taxpayers.

After all, Mr. President, we allow tax-exempt status for bona fide
religious organizations because we believe they promote the common good.
Cults and witchcraft groups do not; in fact, they lead to violent and unlawful behavior.

Mr. President, the pending amendment uses the congressional power of the purse to stop activities by the Treasury Department and the IRS in allowing tax-exempt status to "any cult, organization, or other group that has as a purpose, or that has any interest in, the promotion of satanism or
witchcraft." The amendment defines "satanism" as "the worship of Satan or the powers of evil" and "witchcraft" as "the use of powers derived from evil spirits, the use of sorcery, or the use of supernatural powers with malicious intent."

I urge adoption of the pending amendment.


Eddie,
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