News that individuals at the IRS improperly targeted certain groups for scrutiny thrust DC’s “House Cleaners” into high gear. Indignant talking points have been drafted, hearings have been announced, and heads will roll. (Already, Acting IRS Commissioner Steve Miller was forced to hand in his resignation). But what happens after the dust settles and is swept away? In terms of public policy about campaign finance transparency, there could be a silver lining, but only if the outrage is channeled into reform efforts. So far, hearings have been scheduled by Representatives Issa and Cummings of the House Oversight and Government Reform Committee (who would do well not to lose sight of the “reform” mission embedded in the name of the committee) Representatives Camp and Levin of the House Ways and Means Committee, Senators Baucus and Hatch of the Senate Finance Committee, and by Senate Permanent Subcommittee on Investigation’s Levin and McCain—the latter the “maverick” reformer who hasn’t put his name on a significant piece of reform legislation since the Bipartisan Campaign Reform Act of 2002. Each of those Members should acknowledge—during their hearings and beyond—that underlying the IRS actions is the real and dangerous problem of political organizations masquerading as social welfare organizations, impacting elections with hundreds of millions of dollars in dark money expenditures.
Continue readingIRS Debacle Shows Need for Clearer, not Fewer Rules
The IRS’s admission that it targeted groups with conservative sounding names for scrutiny will no doubt be held up by some as “proof” that the agency can’t be trusted with determining whether organizations claiming to be “social welfare” organizations are actually political organizations in disguise. In fact, just the opposite is true. The agency needs to apply clear and unequivocally neutral rules to its determinations about whether a group is in fact a 501(c)(4) social welfare organization, entitled to tax exempt status but not required to disclose its donors, or whether it is a political organization, also entitled to tax exempt status but not allowed to keep its donors secret. Using a shortcut, like whether a group had the word “tea party” or “patriot” in its name to aid in making that determination is dead wrong for an agency that must be scrupulously nonpartisan.
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