There’s been screaming recently from some Tea Party organizations and other groups that have or want 501(c) (4) status, regarding IRS inquiries about their activities. The designation under the tax code of 501(c)(4) indicates that they are supposed to be non-profit organizations primarily involved in supporting social welfare, though some politicking is permitted.
Instead, many of these groups are overtly political in nature and are using their status for the purposes of tax exemption or to keep the names of their donors secret. A number also have “527” specified offshoots which are plainly political and do not have the benefits accorded to the non-profits. However, when this is so, it is apparently not clear to the IRS how funds are distributed between the two arms and whether or not some individual donors and businesses have been claiming tax deductions for their contributions. Lawyers for these groups have been asserting harassment by the IRS because of the implied threat of the loss of tax-exempt status if the groups turn out to be primarily engaged in political activities.
Some of these “social welfare” organizations have obvious ties to political parties and buy advertising in support of politicians running for office, or even funnel money to their campaigns. While the majority of these have a right-wing orientation, there are some on the left as well. American Crossroads started by Karl Rove and American Priorities created by ex-Obama aides are two of the more prominent of these organizations. Americans Elect, a nascent third party group trying to get its candidates for president and vice-president on the ballot in every state, is also claiming social welfare status and the secrecy that comes with it. The American Action Network, a conservative organization that is blatantly political, is alleging that it is focused primarily on social welfare as well.
While the Super PACs that resulted from the Citizens United decision from the Supreme Court appear to have few restrictions on their activities, any move to force transparency from similar political organizations is welcome. The DISCLOSE Act, introduced by Senate Democrats, aimed to make the Super PACs themselves more transparent by having major donors place their names on any advertising, among other provisions. However, we would have to wait until hell freezes over for this bill to get through Congress, a particularly unlikely event in this era of global warming.
Though the efforts of the IRS to be certain the 501(c)(4) non-profits are not using their funds for political ends will hardly stop the flow of cash to these organizations and the Super PACs, any attempt to hold them to the letter of the law should be pursued. The question remains why the federal government and the courts make the laws and regulations so convoluted and complex in the first place, which only leads to confusion and confrontation among all involved.
Resurrecting Democracy
A VietNam vet and a Columbia history major who became a medical doctor, Bob Levine has watched the evolution of American politics over the past 40 years with increasing alarm. He knows he’s not alone. Partisan grid-lock, massive cash contributions and even more massive expenditures on lobbyists have undermined real democracy, and there is more than just a whiff of corruption emanating from Washington. If the nation is to overcome lockstep partisanship, restore growth to the economy and bring its debt under control, Levine argues that it will require a strong centrist third party to bring about the necessary reforms. Levine’s previous book, Shock Therapy For the American Health Care System took a realist approach to health care from a physician’s informed point of view; Resurrecting Democracy takes a similar pragmatic approach, putting aside ideology and taking a hard look at facts on the ground. In his latest book, Levine shines a light that cuts through the miasma of party propaganda and reactionary thinking, and reveals a new path for American politics. This post is cross posted from his blog.
Political junkie, Vietnam vet, neurologist- three books on aging and dementia. Book on health care reform in 2009- Shock Therapy for the American Health Care System. Book on the need for a centrist third party- Resurrecting Democracy- A Citizen’s Call for a Centrist Third Party published in 2011. Aging Wisely, published in August 2014 by Rowman and Littlefield. Latest book- The Uninformed Voter published May 2020