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.