Should Any Political Group Be Granted Tax-Exempt Status?

While the US government continues to argue over legal versus ethical transgressions at long overdue oversight committee hearings, the American public is losing sight of the fact that tax exempting politically active groups—all groups—needs to end. Our nation is being suffocated by not-for-profit candidate and issue advocacy groups and US elections continue to be purchased rather than earned.

If anyone wishes to advocate for legislation or a candidate’s position, paying taxes, however distasteful, is not an infringement on first amendment freedoms. Ask yourself what harm would befall our nation if dark monies tax-free influence was removed from our electoral and public policy deliberations.

Corporations, Trade Unions, PACs and loosely termed “social welfare groups” have indisputable free speech rights. However, what entitles these groups to evade paying taxes? Simply stated, money. The politicians like their money and tax-exempt status for political allies translates to increases in campaign support. Anonymous campaign support.

The Obama Administration is corrupt and cares little for the public trust. The IRS has violated the law. Off with their heads. You will not hear me complain. However, if substantive changes to IRS and FEC law are not instituted this bi-partisan problem will never go away. Our government created this mess. They profit from it, they encourage it and Americans are victimized by it. Moreover, foreign interests—not so loyal to our Republic—have become very powerful shadow players in this not-for-profit campaign scheme.

Influence peddling is endemic in both political parties. At least until somebody is caught breaking the rules. Then government ethics suddenly become an issue. Of course someone needs to go to prison for these tactics. Law breaking is never “irrelevant. “ Naturally, Obama bears—whether or not he can plausibly deny involvement—ultimate responsibility for the actions of his entire Administration. Investigations that are far more serious should have taken place a long time ago.

It is 2013 and America has a poorly vetted community organizer pretending to run the country. Obama was elected twice with the help of well-designed dark money social welfare organizations and is currently operating his own tax-free 501(c) (4) “Organizing for Action” out of our White House. Obama spends more time running around, recruiting, and raising money for his tax-free influence peddling mill (OFA) then he has spent watching over his Administration. Personally, I wonder how long it took the IRS to approve his application for 501(c)(4) status. Did they ask him about his religious beliefs before granting him tax-exempt status?

Our US Congress is just as guilty at perpetuating this not-for-profit con game as the President. Frankly, Republicans—especially notable national figures John McCain and John Boehner—would rather you did not know just how much money and support their campaigns receive from shadow fundraisers given not-for-profit status. Would it surprise you to know that Boehner gets over 80% of his campaign contributions from outside his home state of Ohio? 501(c)(4) organizations play a very powerful role in our elected officials lives and careers. It is not exclusive to the Democrat political machine.

According to the Center for Responsive Politics, 13 0f the 21 organizations granted 501(c)(4) status during the last election cycle were conservative. It has been reported that these conservative not-for-profits outspent their liberal counterparts 34-1 during the 2010-2012 election cycle. No wonder the Obama IRS has been overly cautious about approving more of these conservative groups for not-for-profit status. It might also explain the true motive for Republican Party indignation. Oh well.

Americans should also know that operating a shadow money political not-for-profit under US law is being done without the benefit of official tax authority approval. It simply requires declaring your organization and reporting your political communication and issues add spending to the Federal Elections Commission, not the Internal Revenue Service. Karl Rove’s “Crossroads GPS“, a spinoff of the 527 “American Crossroads” is still waiting for its official not-for-profit designation by the IRS. However, they managed to spend 87.9 million of anonymous donor money on their preferred candidates since their birth in 2010.

Far too many powerful special interests have taken over our elections. New strategies and ingeniously designed schemes subvert campaign finance law only serve to perpetuate the corruption plaguing our government. No political speech should be given tax-exempt status. None. All politically connected contributions should be publicly disclosed. Republican or Democrat. All amounts.

Personally, I wonder how much tax revenue and election integrity America would acquire if we completely abolished these groups. Perhaps it is time that Washington insiders and our “bought and paid for” public servants started paying their fair share and playing by a different set of rules.

Executive Branch corruption is once again getting slapped around—at least for the time being—and politicians up for re-election are outraged over the one sided calls made in the last election cycles influence peddling game. The loyalties and intimidation tactics of campaign contribution referees—the IRS—are exposed and another D.C. street fight is breaking out between Democrats and Republicans on Capitol Hill.

Like most conservatives, I am angry about the current IRS scandal. However, my anger amplifies when I recognized that once again our government is less concerned with overburdened taxpayers and a nation in jeopardy and more concerned about their campaign coffers and who controls the money.

[js-disqus]