By Patrick ReisThe Maryland Democrat announced Wednesday that he is suing the agency, as well as the Treasury Department, to demand a change in the way they evaluate nonprofits that proclaim themselves to be “social-welfare” organizations.The IRS currently allows such organizations—a class of power players known as “tax-exempt 501(c)4s,” whose ranks include Karl Rove’s Crossroads GPS and the Obama-aligned Priorities USA—to dabble in political advocacy, so long as they keep such activities secondary to their general charitable work.
By Bernie BeckerRep. Chris Van Hollen (D-Md.) and campaign finance reform advocates are preparing to sue the IRS over the agency’s handling of tax-exempt applications.Van Hollen, the Campaign Legal Center, Democracy 21 and Public Citizen, who will unveil their lawsuit on Wednesday, have all said that IRS regulations are allowing too many political groups to obtain tax-exempt status.
By Fredreka SchoutenBut, as Michael Beckel of The Center for Public Integrity reports today, Midler may have gone too far with her support of Giffords’ efforts. Her private family foundation donated $10,000 on May 13 to Giffords’ gun-control super PAC, Americans for Responsible Solutions.Federal law bars foundations from lobbying to influence legislation and frowns on them participating in politics, even indirectly. Giffords’ group has pushed hard for gun-control legislation in Congress.
By Seth MasketIn 2002, Congress passed and President Bush signed the Bipartisan Campaign Finance Reform Act, also known as the McCain-Feingold Act or BCRA. This act had two specific goals. First, it sought to reduce the influence of parties in federal elections by banning “soft money,” the previously unlimited funds parties could spend on races. Second, it sought to reduce the influence of corporations and interest groups by prohibiting their funding of “electioneering advertisements” (those that specifically advocated for or against a candidate) shortly before an election.A decade later, would we say that parties, interest groups, and corporations have a reduced role in our elections? I didn’t think so. But why? Many would point to the Supreme Court’s 2010 Citizens United v. FEC decision, but in fact, BCRA was being undermined almost from the start by the very political parties it sought to defang. Parties did this through the use of what have become known as “527s.”
By Bernie Becker“How many times have Congressional Democrats now tried to declare the IRS targeting investigation over?” asked Frederick Hill, a spokesman for House Oversight Committee Chairman Darrell Issa (R-Calif.)Cummings and Levin released the new documents after a debate between the IRS and Treasury’s inspector general for tax administration over whether confidentiality laws would permit the agency to release the information. Democrats have insisted that Russell George, the tax administration inspector general, also withheld key information from his report.
Candidates, Politicians, Campaigns, and Parties
By Aaron BlakeThe Democratic National Committee continues to struggle to pay off its debt from the 2012 election, according to its latest campaign finance report.In July, the DNC actually saw its debt rise from $18.3 million to $18.5 million, even as its cash on hand declined from $5.7 million to $4.1 million. The committee raised $3.9 million, but spent significantly more than that — $5.4 million.
By DAVID W. CHENThe dinner was one of the early highlights of Bill de Blasio’s campaign for mayor— supporters were asked to make a donation, of any amount, and they would then have an opportunity to attend a dinner with Alec Baldwin.But the dinner has now led to a battle between the de Blasio campaign and the city’s Campaign Finance Board, which has refused to match contributions made in connection with the event, because, the board has deemed, it was akin to a raffle.
By Kent CooperA Democratic super PAC added another million dollars in support to Virginia gubernatorial candidate Terry McAuliffe.