Loophole Allowed Planned Parenthood to Build Abortion Clinic With Taxpayer-Funded Municipal Bonds

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WASHINGTON, DC – Construction on Planned Parenthood abortion facilities in at least four states was subsidized by taxpayers, according to an investigation by federal pro-life lawmakers.

The Washington Times reports U.S. Rep. Robert Pittenger, R-North Carolina, found a loophole that allows abortion groups like Planned Parenthood to receive tax-free municipal bonds for construction of their abortion clinics.

“We’re utilizing the federal government to facilitate the development of these abortion clinics through the involvement of the American taxpayer, and they don’t want that,” Pittenger said.

The pro-life congressman said he plans to introduce legislation this week to close the loophole and stop the government from supporting the construction of abortion facilities.

Here’s more from the report:

Complete data are unavailable, but congressional investigators and pro-life groups say Planned Parenthood clinics in Illinois, Florida and in the Upper Midwest used bonds issued by local authorities and backed by the federal tax exemption to fund construction. A clinic in Massachusetts also may have been funded by bonds issued from the state’s economic development agency. …

Tax-exempt municipal bonds are issued by states and localities and are generally used for public works projects such as roads, schools, bridges and hospitals. Interest payments are tax-exempt and deemed secure, which make them attractive for investors — meaning lower interest rates.

That ends up saving money for those involved in the project, particularly when it’s a sports stadium or, in this case, an abortion clinic.

The abortion chain also received two “abortion bonds” to help build its headquarters in New York, according to the report. Planned Parenthood’s public financial audit shows two tax-exempt bonds for its headquarters, including a $30 million loan in 2012 from the Public Finance Authority revenue board in Wisconsin, the report states.

“The intent is to close a loophole in the tax code that allows for them to finance their clinics,” Pittinger said.

Jennifer Popik, director of federal legislation at National Right to Life, said Planned Parenthood receives taxpayer dollars and other forms of support through numerous government streams, and Pittenger’s legislation would help cut off one avenue of support.

“This is a good small step here,” Popik told the Times. “This isn’t defunding Planned Parenthood, this isn’t defunding large abortion providers, but this is one thing we can show we’re moving in a positive direction.”

Planned Parenthood is the largest abortion business in America, aborting more than 300,000 unborn babies annually, according to its annual reports. It also receives approximately half a billion taxpayer dollars each year, largely through Medicaid.

The abortion group’s own reports show its focus is not on women’s health care but on abortions. Non-abortion services have been dropping steadily at Planned Parenthood in the past decade, but its abortion numbers remain high.

Planned Parenthood could continue to receive tax dollars if it stops its abortion practices and starts focusing on legitimate health care, but it has refused to do so.

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