Wednesday, May 15

There is a surge in misuse of nonprofits to hide political spending, and the IRS should do more, not less, scrutinizing of such groups

Arn Pearson writes in The Guardian:
"The recent IRS admissions about the use of 'tea party' or 'patriot' labels to flag applications for nonprofit status for additional scrutiny raise serious questions about political bias, and should receive a thorough and independent investigation.
"There is rightly a growing call for House and Senate hearings to answer those questions, but any investigations must delve deeper into the bigger problem facing our democracy after the Supreme Court's decision in Citizen United: the dramatic surge in the misuse of nonprofits to hide political spending by billionaires and corporations from American voters, and the lack of any meaningful enforcement response."
The IRS should do more, not less, scrutinizing of political groups

2 comments:

  1. Growing participation is a bigger problem then selective absuve behavior by a federal agency?

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  2. Strip their special status as tax exempt - it is probably the only way to avoid this kind of evil, of which the IRS has a long history of ( examples here: http://reason.com/blog/2013/05/13/irs-has-a-long-history-of-political-abus ).

    Going further, why not abolish the corporate income tax, which hits all employees at a corp (even the low income ones) and raise capital gains taxes, there by taking away a lot of the need for this kind of maneuvering? Plus save billions $ every year in non-wealth producing compliance costs.

    One man's organization for social welfare is another man's organization for political action. Sometimes both a third man.

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