The GOP's 501(c)(4) Outrage Is Really An Attack on Campaign Finance Laws

[TomCADem]

Republicans and Fox News are now pushing the talking point that the IRS is targetting conservative 501(c)(4) groups for their politics. The talking point sounds good, since it taps into our intrinsic sense of fairness and it is unclear what are 501(c)(4) groups and the type of groups who the IRS is targetting. Well, the most notable (infamous) 501(c)(4) group is Karl Rove's Crossroads GPS, which enables right wing millionairs and billionaires to funnel millions into conservative political causes while remaining anonymous. This is the key, the lack of disclosure of campaign donors and the lack of campaign contribution limits.

Normal folks who contribute to a campaign must identify themselves and this information is a matter of public record. Of course, it is a bit embarassing for candidates and donors if a fat cat donor is dumping millions to support someone who is also on the record for supporting policies that are financially beneficial to that persion. So, 501(c)(4)s allow the rich to dump millions in dark money to their favorite puppet politicians.

The IRS has actually been very lenient in its enforcement of rules regarding 501(c)(4)'s, since they should be engaged in social welfare, not active campaigning. I guess Karl Rove and Crossroad GPS did not get the memo. Now that the IRS has taken very modest steps to address these abuses, which generally benefit conservatives, since liberals just don't have as many billionaire donors seeking to throw millions at liberal causes anonymously, Republicans get bent out of shape about the bias of this reality.

This is really an effort by Republicans to clear the way for 2014 so that their billionaire donors can pump millions in dark money through 501(c)(4)s.

[dkf]

1. Oh boy if this is the type of guidance we want the IRS to use for their workers...

We deserve every bit of criticism coming our way.

I bet it was someone with your exact suspicions that formed this policy.

[bemildred]

2. Yep, that's my take too.

They fear the IRS and it's investigatory powers. This is an attempt to fend that off.

[ThoughtCriminal]

3. Working the Refs

Like a coach who screams at every call that does not their way. A time honored GOP strategy as old as the Librul Media.

[blkmusclmachine]

4. .

.

[mitty14u2]

5. This story needs to stay in the news F-ing Crazy

Reid, Durbin Accuse GOP of Putting Koch Brothers Ahead of Ukrainians

Senate Foreign Relations ranking member Bob Corker, R-Tenn., made public a push by some in the GOP to insist on blocking the IRS from imposing new restrictions on the political activities of groups such as Americans for Prosperity claiming the not-for-profit tax status as part of a deal to adopt a package of International Monetary Fund proposals that date to 2010.

“Let’s make sure we all understand something: The IMF money has nothing to do with Ukraine. I understand the administration wants the IMF money, but it has nothing at all to do with Ukraine,” Boehner said. “The Senate should pass this bill and send it to the president’s desk before leaving for the district work period.”

Reid rejected both Boehner’s suggestion to pass the House bill and the argument about the Ukrainian connection. ”I’ll tell you this: I stand against the House bill,” Reid said. “Can you imagine to let Russia go unsanctioned?”

http://blogs.rollcall.com/wgdb/reid-durbin-accuse-gop-of-putting-koch-brothers-ahead-of-ukrainians/

‘Exclusively’ vs. ‘primarily’: IRS law a ‘disaster waiting to happen’ 501c4 Can of Worms opened by Issa

On May 13, 2013, O’Donnell explained how the “IRS has gotten away with the crime” for 54 years:


Section 501(c)(4) of the Internal Revenue Code which defines social welfare organizations for tax-exempt purposes defines them this way: “Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare.”

Then, the IRS code does a magic trick and changes the meaning of the word exclusively: “To be operated exclusively to promote social welfare, an organization must operate primarily to further the common good and general welfare of the people of the community.”

Members of the Senate Finance Committee questioned misuse of Section 501(c)(4) of the Internal Revenue Code at a hearing Tuesday.

http://www.nbcnews.com/id/51984570/t/exclusively-vs-primarily-irs-law-disaster-waiting-happen/