The Last Word - Dems pick up on real IRS Scandal

[Galraedia]

[BlueStreak]

1. FINALLY !!!!!

Kudos to the two Congressmen who spoke the plain truth here. This is just not complicated. None of these political organizations, conservative or liberal, should have 501(C)(4) status. And won't it be really ironic if, by being such an ass about this, Issa actually causes his buddies to lose their 501(c)(4) protection?

That is potentially a big deal, not because of the destructibility, but because 501(c)(4) allows campaign contributions to be laundered, making the donors completely anonymous.

I was under the impression that the regulation had been changed as the result of court decisions. According to this testimony, it seems like the IRS just did that on their own. if that is the case, then Treasury should simply be able to change the regs to match the law, and notify all these political organizations that their determination will be withdrawn.

[James48]

2. Citizens For Ethics Lawsuit- -

There is a lawsuit which was filed over this last month.

The reg does not match the law at 26 USC 501(c)(4).

It IS a big deal.

See
http://www.citizensforethics.org/page/-/PDFs/Legal/CREW%20v.%20IRS%20%28Rulemaking%20Petition%29/5-21-13_District_Court_Complaint_IRS.pdf?nocdn=1

[BlueStreak]

6. The Obama administration should not present a defense

Just as it did with the Sanctity of Marriage law (or whatever it was called.) This is the perfect opportunity to fix a big part of what is wrong with our electoral system.

I am surprised that this pleading did not explicitly ask the court to overturn any existing 501(c)(4) determinations. But I guess that is implied if the IRS is forced to fix its regulations.

[truebluegreen]

3. Yes! Maybe something good will come of this.

And it's a hoot and a half that the Republicans might end up doing something for good government...by accident.

[BlueStreak]

4. If Obama has any interest in improving our democracy

what should happen is that the IRS should seize this opportunity and simply determine that their interpretation has been out of compliance with the law. Effective 1/1/2014, their regs will align with the law, requiring any 501(c)(4) to be entirely devoted to social welfare, and the law explicitly excludes politicking from that definition.

Grant a transition period for any organization that erroneously received a determination letter under the improper standard. Those organizations will have until 12/31/2003 to com into compliance with the law or else have their determination revoked. But specifically, this administration should ensure that all political organizations have their status revoked before the 2014 election cycle gets into high gear.

That won't solve all our election problems, but it will address a very important one, which is that this 501(c)(4) scandal allowed PACs to raise unlimited money with absolutely zero public disclosure of the contributors.

This would be a tangible and important step toward cleaner elections. And the beauty of it is that it doesn't require a single action form Congress. The law is already in place. Obama, you're on notice now.

[truebluegreen]

5. +1000