“Focusing On The Wrong People”: The Real IRS Scandal Is Secret Money Influencing US Elections
The IRS is under siege for investigating conservative political groups applying for tax-exempt status. But the real problem wasn’t that the IRS was too aggressive. It was that the agency focused on the wrong people—“none of those groups were big spenders on political advertising; most were local Tea Party organizations with shoestring budgets,” writes The New York Times—and wasn’t aggressive enough. The outrage that Washington should be talking about—what my colleague Chris Hayes calls “the scandal behind the scandal”—is how the Citizens United decision has unleashed a flood of secret spending in US elections that the IRS and other regulatory agencies in Washington, like the Federal Election Commission, have been unwilling or unable to stem.
501c4 “social welfare” groups like Karl Rove’s Crossroads GPS, the Koch brothers’ Americans for Prosperity and Grover Norquist’s Americans for Tax Reform—which don’t have to disclose their donors—spent more than $250 million during the last election. “Of outside spending reported to the FEC, 31 percent was ‘secret spending,’ coming from organizations that are not required to disclose the original sources of their funds,” writes Demos. “Further analysis shows that dark money groups accounted for 58 percent of funds spent by outside groups on presidential television ads [$328 million in total].”
IRS guidelines for 501c4 groups state that “the promotion of social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office…a section 501(c)(4) social welfare organization may engage in some political activities, so long as that is not its primary activity.” It’s ludicrous for groups like Crossroads GPS—which spent at least $70 million during the last election—to claim that its primary purpose is not political activity. Only the likes of Karl Rove would believe that running attack ads against President Obama qualifies as social welfare.
So what did the IRS do about this blatant abuse of the tax code by some of the country’s top corporations and richest individuals? Virtually nothing. “When it comes to political spending, the IRS is more like a toothless tiger,” wrote Ken Vogel and Tarini Parti last year in a story headlined, “The IRS’s ‘feeble’ grip on big political cash.”
It’s obvious that our Wild West campaign-finance system needs more, not less, scrutiny and much tighter, not looser, regulation. Yet conservative groups are exploiting the IRS scandal to further dilute regulatory agencies that are already on life support. Writes Andy Kroll of Mother Jones:
The IRS’s tea party scandal, however, could hinder the agency’s willingness to ensure politically active nonprofits obey the law. The IRS will likely operate on this front with even more caution, taking pains not to appear biased or too aggressive. That in turn could cause the agency to shy away from uncovering 501(c)(4) organizations that do in fact abuse their tax-exempt status by focusing primarily on politics.
The Rove’s of the world would like nothing more than for the public to believe that conservative groups had too few opportunities to influence the 2012 election and were wrongly persecuted by evil Washington bureaucrats. Yet the 2012 election should have taught us precisely the opposite lesson—that our patchwork regulatory system is far from equipped to deal with the new Gilded Age unleashed by Citizens United. As Rep. Keith Ellison told Hayes last night: “We need to redouble our efforts to bring real campaign-finance reform forward.”
By: Ari Berman, The Nation, May 14, 2013
“The Bystander Speaker”: If John Boehner Were A Woman, They’d Be Calling Him The Weakest Speaker In History
Watching House Speaker John Boehner (R-Ohio) make strange comments this morning about the IRS controversy reminded me of something House Minority Leader Nancy Pelosi (D-Calif.) told Chris Hayes the other day about the Speaker: “If he were a woman, they’d be calling him the weakest speaker in history.” Asked why, Pelosi added, “Because nothing’s getting done.”
That’s true. We’ve talked on several occasions in recent years about a straightforward thesis: Speaker Boehner is bad at his job. In recent weeks, however, a related-but-different thesis has come into focus: Speaker Boehner is no longer really trying to do his job.
Ask Speaker John Boehner a question on a key issue these days, and you’re likely to get a variation of the same response: Talk to someone else.
The Speaker has maintained a lower-key presence in recent months, largely avoiding the spotlight and abandoning the deal-making ambitions of his first two years in office. Whether the matter is immigration, guns, budget talks or online sales taxes, Boehner (R-Ohio) routinely defers or deflects questions to committee leaders.
I’d add one addendum to that last part: ask Boehner about nearly any issue, and if he doesn’t refer questions to committee chairs, he’ll refer questions to the Senate.
I suppose, in fairness, it’s worth emphasizing that it’s not necessary to draw a value judgment here. Boehner seems to have deliberately abandoned any hope of leading, legislating, or even influencing the policymaking process, but that’s his right. Maybe he likes “leading from behind.” Perhaps he’s trying out a new model for the Speaker’s office — one in which the leader becomes the bystander, and the Speaker just waits to see how events unfold around him.
Regardless, “worried Republicans” told BuzzFeed last week that Boehner “seems to be missing in action from messaging and legislative battles.”
That’s partly due to Boehner’s inability to lead, and partly due to the fact that House Republicans are deeply divided among themselves. But whatever the cause, Pelosi’s assessment seems more than fair.
By: Steve Benen, The Maddow Blog, May 15, 2013
“Victimhood”: Ignoring One Wrong And Vilifying The Other, Republicans Decide To Care About Big Government Overreach
Government officials and employees responsible for the allegedly inappropriate scrutiny of right-wing groups applying for non-profit, tax-exempt status as “social welfare organizations” (taxpayer subsidized, supposedly non-partisan 501(c)(3) and (c)(4) groups) should be investigated and, if appropriate, disciplined, fired and/or charged under criminal statutes.
Government officials and employees responsible for secretly subpoenaing the phone records of AP reporters ought to similarly be investigated and, if appropriate, disciplined, fired and/or charged under criminal statutes — though it is likely that the government has already given itself legal dispensation to carry out that sort of invasive, seemingly extra-Constitutional, certainly un-American intimidation of whistleblowers and journalists alike.
That said, it’s been predictably amusing over the past 24 hours or so, witnessing the outrage – outrage! – of right-wingers over the very things that they not only didn’t give a rat’s ass about when the same, and often much worse, was carried out by the Bush administration, but that they actively supported at the time.
“They say two wrongs don’t make a right, but ignoring one of those wrongs while vilifying the other is intellectually dishonest and violently hypocritical, among other things,” writes Bob Cesca at The Daily Banter, noting that “Democrats have almost universally condemned the actions of the IRS, as they’ve done when the congressional Republicans and, naturally, the Bush administration used the nearly unlimited might of the government to engage in similar investigations — or worse.”
“Republicans,” he writes, “spent eight years defending, applauding and enabling Bush abuses on this front, while subsequently cheerleading the congressional Republicans as they carry forward the politics of intimidation and government overreach into the Obama era.”
Cesca goes on to list “10 Examples of Bush and the Republicans Using Government Power to Target Critics”, beginning with the Republican-supported Big Government assaults on Planned Parenthood, ACORN (which succeeded in putting a four-decade-old community organization out of business), and on even the ability of perfectly legal American voters to simply cast a vote in their own elections. He also reminds us of the abuse of the Bush Dept. of Justice which, specifically, targeted Democrats for prosecution, and for the firing of U.S. Attorneys without cause, other than they were not partisan enough for the tastes of the Bush White House.
But while the Obama administration deserves appropriate scrutiny and investigation and accountability for whatever its part in both the developing IRS and DoJ/AP scandals, let us not forget some of these certainly-as-bad, arguably-worse scandals related to both the IRS and the DoJ — from during the Bush administration — that Republicans not only didn’t give a damn about, but often applauded for most of the past decade…
6. The Bush IRS Audited Greenpeace and the NAACP. Not only was the NAACP suspiciously audited during Bush’s 2004 re-election campaign, but high-profile Republicans like Joe Scarborough had previously supported an audit of the organization even though he’s suddenly shocked by the current IRS audit story. Also in 2004, the Wall Street Journal reported that the IRS audited the hyper-liberal group Greenpeace at the request of Public Interest Watch, a group that’s funded by Exxon-Mobil.
7. The Bush IRS Collected Political Affiliation Data on Taxpayers. In 2006, a contractor hired by the IRS collected party affiliation via a search of voter registration roles in a laundry list of states: Alaska, Arkansas, Colorado, Connecticut, Delaware, Florida, Louisiana, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Utah and Wisconsin. This begs the obvious question: why? Why would the IRS need voter registration and party affiliation information?
8. The Bush FBI and Joint Terrorism Task Force Targeted Civil Rights / Anti-War Activists. In 2005, an ACLU investigation revealed that both the FBI and the JTTF surveilled and gathered intelligence about a variety of liberal groups including PETA and the Catholic Workers, along with other groups that it hyperbolically referred to as having “semi-communistic ideology.”
9. The Bush Pentagon Spied on Dozens of Anti-War Meetings. Also in 2005, the Department of Defense tracked 1,500 “suspicious incidents” and spied on four dozen meetings involving, for example, anti-war Quaker groups and the like. Yes, really. The Bush administration actually kept track of who was attending these meetings down to descriptions of the vehicles used by the attendees, calling to mind the pre-Watergate era when the government investigated 100,000 Americans during the Vietnam War.
10. The Bush FBI Targeted Journalists with the New York Times and the Washington Post. Yesterday, it was learned that a U.S. attorney, Ronald Machen, subpoenaed and confiscated phone records from the Associated Press as part of a leak investigation regarding an article about a CIA operation that took place in Yemen to thwart a terrorist attack on the anniversary of bin Laden’s death. Well, this story pales in comparison with the Bush administration’s inquisition against the reporters who broke the story about the NSA wiretapping program. In fact, the Justice Department considered invoking the Espionage Act of 1917, the archaic sequel to the John Adams-era Alien and Sedition Acts. The Bush FBI seized phone records — without subpoena — from four American journalists, including Raymond Bonner and Jane Perlez. How do we know this for sure? Former FBI Director Robert Mueller apologized to the New York Times and the Washington Post.
I’m delighted, personally, that the Republican Party and its adherents have finally decided to be outraged about actual governmental abuses of power. I’m even more delighted that they may now be focusing some of that outrage on actual abuses (as opposed to all of the pretend “scandals” they’ve been pretending to be outraged about over the past four years). But it will be all too convenient if the only such abuses they ultimately concern themselves with are the ones that affected their own special-interest groups, rather than those that have illegally and/or unconstitutionally affected the interests of all Americans for at least the past decade and more.
It will be a shame if the result of all of this is that the 501(c)(4) and (c)(3) racket that exploded in the wake of the U.S. Supreme Court’s Citizens United atrocity goes unexamined and un-overturned. As is, the IRS was doing a dreadful job in cracking down on that particularly obvious scam, and it’s almost certain that all of this will only make the appalling taxpayer-subsidized abuse by purely political groups masquerading as non-partisan “social welfare organizations” even worse.
But it will be even more of a shame if the Big Government abuses of power under the Obama administration are dealt with as special cases that occurred in a vacuum. They did not. They have been happening for years, under the Bush administration and now under the Obama administration. (For that matter, the IRS abuses now in question happened while the agency was headed up by George W. Bush’s appointee.) All of those Big Government abuses deserve oversight and governmental action and legislation to ensure that none of them can ever happen again in the future.
Unfortunately, that is unlikely to happen in a political atmosphere where one party (the Republicans) and its supporters have chosen “victimhood” as a personal political philosophy and a wartime footing against their perceived enemy (the Democratic Party) as a point of personal pride, rather than displaying any interest whatsoever in actually governing on behalf of the American people or in ending the opportunities for the very Big Government abuses they decry — but only when it affects them.
By: Brad Friedman, The National Memo, May 15, 2013, Originally posted at The Brad Blog
“The Diction Debates”: To Cynical Republicans, “An Act Of Terror Is Different Than A Terrorist Attack”
Marc Ambinder explained this morning that Benghazi is “a debate about post-tragedy diction.” That’s certainly bolstered by recent Republican arguments, nearly all of which have to do with the timing of various choices of words.
If you’re thinking that genuine political controversies are supposed to deal with more meaningful issues than diction, you and I are on the same page, though congressional Republicans and much of the political world are on a very different page.
Take Sen. John McCain (R-Ariz.), for example. On Sept. 12, 2012, President Obama described the Benghazi attack as an act of terror. McCain yesterday insisted that those comments don’t count: “The president didn’t call it an ‘act of terror.’ … He condemned ‘acts of terrorism.'”
What matters, in Republicans’ minds, is the diction. House Oversight Committee Chairman Darrell Issa (R-Calif.) was thinking along the same lines today on Fox News. Watch on YouTube
“The president sent a letter to the president of Libya were he didn’t call it a terrorist attack even when in real time the president of Libya was calling this a pre-planned Sept. 11 terrorist attack,” Issa said. He added, “An act of terror is different than a terrorist attack.”
This is amusing, in a pathetic sort of way, and not just because of Issa’s rhetorical framework. It’s also striking because it’s shining a light on what Republicans consider truly important about this story: which officials used the words Republicans like and when.
Ambinder added, “The Diction Debates aren’t real because the opponent insists he/she knows about the motivation for using/ not using certain key words.” That’s also true — McCain, Issa and others are quite animated over which official used the word “terror” on which day.
But all of this serves to remind us that the political world has defined “scandal” down to a meaningless level. Watergate dealt with crimes committed by a president. Iran-Contra dealt with a White House that sold arms to a sworn enemy to finance an illegal war. The Plame Affair, the U.S. Attorney purge, and illegal warrantless wiretaps dealt with systemic wrongdoing at the highest levels.
In 2013, though, we’re apparently stuck with, “An act of terror is different than a terrorist attack.
By: Steve Benen, The Maddow Blog, May 13, 2013
“The Old Failed Gang Is Back Together”: After Spectacular Failures And Unprecedented Abuses, Pretending To Have Credibility
Several prominent officials from the Bush/Cheney era have been in the news lately, largely as a result of ongoing controversies, but many of them — Robert Gates, retired Adm. Mike Mullen, retired Gen. David Petraeus — are under fire from the right for not toeing the party’s anti-Obama line.
There are, however, plenty of loyal Bushies stepping up to launch rhetorical attacks. Indeed, they seem happy to pretend they still have credibility and are compelling messengers to express their party’s contempt for the president.
Former Attorney General Mike Mukasey was on Fox News this morning accusing Obama of abusing the power of the executive branch (no, seriously); former Defense Secretary Donald Rumsfeld is making the rounds on conservative talk radio; and former Vice President Dick Cheney is, well, doing what Dick Cheney does.
“They lied. They claimed it was because of a demonstration video, that they wouldn’t have to admit it was really all about their incompetence,” Cheney told Fox News’s Sean Hannity on Monday. “They ignored repeated warnings from the CIA about the threat. They ignored messages from their own people on the ground that they needed more security.”
“I think it’s one of the worst incidences, frankly, that I can recall in my career … if they told the truth about Benghazi, that it was a terrorist attack by an Al Qaeda-led group, it would destroy the confidence that was the basis of his campaign for reelection,” Cheney added. “They tried to cover it up by constructing a false story.”
As a substantive matter, much of what Cheney said is ridiculous and wrong, as is often the case. If the failed former V.P. has proof of White House lies and a cover-up, he’s welcome to share it, but the fact that preliminary intelligence out of Benghazi was wrong isn’t evidence of either.
But more to the point, does Dick Cheney, of all people, really want to have a conversation about national security lies, ignored warnings about terrorist threats, and covering things up by constructing false stories? Because that’s largely a summary of his eight years of spectacular failures and unprecedented abuses in office. Indeed, I’m not sure whether to find it funny or sad that he, Rumsfeld, and Mukasey feel comfortable showing their faces in public again.
As for Cheney seeing Benghazi as “one of the worst incidences” that he “can recall,” I’m not going to play a game of ranking the seriousness of terrorist attacks, but I’m curious if Cheney recalls 9/11. If he doesn’t think that counts — and there’s some evidence to suggest he doesn’t — and he only wants to focus on attacks on American outposts abroad, I wonder if Cheney might also recall the 1983 bombing of a Marine barracks in Beirut that left 241 American servicemen dead, right before Reagan cut and ran.
Any of this ring a bell, Dick?
By: Steve Benen, The Maddow Blog, May 14, 2013
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