What I don’t hear among the thousands upon thousands of words
generated in this so-called Tea Party IRS scandal is somebody saying that the
likelihood of an organization bearing the name Tea Party or its equivalent is
undertaking some charitable cause, a requirement of a 501(c) 4 certification
for tax purposes, is zero. In other
words, calling a pig a dog doesn‘t make it a dog. To say it another way, one doesn’t have to be too smart to
know that a Tea Party organization is not a charity.
What is happening currently is not a scandal – it is a controversy stirred up by the equivalent of bad used
car salesmen trying to flim-flam the American people into buying once again a Koch
Brother's old lemon under the name of IRS tax exempt audits. IRS employees, tasked with separating political
groups not allowed to claim tax-exempt status, from bona fide social welfare
organizations were given almost no official guidance on how to do that, so
they went after Tea Party groups because those seemed like they might be
political. Keep in mind that the commissioner of the IRS at the time was a Bush
appointee. He was fired yesterday
by Obama. This should end the
controversy.
The big question remaining is should the 501(c)(4) status
even exist? Should nonprofits be allowed any political activity? The problem with the (c)(4) designation is
that it is essentially a charity that is permitted to engage in unlimited
lobbying and some significant amount of political campaign activity (as long as
that activity isn’t the organization’s “primary purpose”) in exchange for
denying the organization the ability to receive deductible charitable
contributions. The best solution
to the problems with 501(c)(4) organizations is to eliminate them
completely. An alternative
solution would be to continue to allow these so-called self-designated “charities”
to function, but require that their donors and the amounts donated be disclosed
to the public.
Just saying . . .
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