“The Real IRS Problem”: The Post Citizens United Explosion Of Undisclosed Political Campaign Spending
Americans of all political stripes should be outraged at the recent revelation that the Tea Party was unfairly targeted by the IRS before last year’s election. The IRS should never base its decisions on political preferences or ideological code words, regardless of what bureaucratic challenges it may face. But the lesson that the right is drawing from the IRS’s misdeeds — the lesson that threatens to dominate the public conversation about the news — is wrong.
We’re seeing a knee-jerk reaction, particularly from the Tea Party and their allies in Congress, that is threatening to turn the IRS’s mistakes into an indictment of “big government” writ large. Some are already trying to tie the scandal to the Right’s favorite target, Obamacare, and to the Benghazi conspiracy theory.
The danger of this frame is that it will discourage the IRS from fully investigating all nonprofit groups spending money to influence elections. And it will distract from the core problem behind the IRS’s mess: the post-Citizens United explosion of undisclosed electoral spending.
Before the Supreme Court’s decision in Citizens United, only a limited number of nonprofit 501c(4) groups could spend money to influence elections — those who did not take contributions from corporations or unions. But Citizens United lifted restrictions on corporate spending in elections, setting the stage for individuals and companies to funnel unlimited money through all corporations, including c(4)s and super PACs in an effort to help elect the candidates of their choice. Spending by c(4)s has exploded since Citizens United, since the decision allowed any c(4) nonprofit corporation that didn’t spend the majority of its money on electoral work to run ads and campaign for and against candidates. And c(4)s, as long as they follow this rule, don’t have to disclose their donors under the laws currently in place.
The IRS, then, was forced to play a new and critical role in policing this onslaught of electoral spending. IRS officials clearly made poor choices in how to confront this sudden sea change and those mistakes should be investigated and properly addressed. But strong oversight of this new wave of spending remains critically important and clearlywithin the IRS’s purview.
If we let understandable concerns about bad decisions by the IRS lead to weakening of campaign finance oversight, our democracy will be the worse off for it. Instead, we should insist that the government strengthen its oversight of electoral spending — equally across the political spectrum. We should pass strong disclosure laws that cover all political spenders, including c(4)s. And we should redouble our efforts to overturn Citizens United by constitutional amendment and reel back the flood of corporate money that led the IRS to be in this business in the first place.
By: Michael B. Keegan, The Blog, The Huffington Post, May 15, 2013
“Hidden In The Footnotes”: IRS Cases Included Organizations Of All Political Views
USA Today had an item today on the IRS controversy, which seemed to reinforce much of what we already know: conservative groups seeking tax-exempt status faced unfair and unreasonable scrutiny. But deep in the article, in the 18th paragraph, USA Today added seven unexpected words: “Some liberal groups did get additional scrutiny.”
They did? Actually, yes.
The Internal Revenue Service, under pressure after admitting it targeted anti-tax Tea Party groups for scrutiny in recent years, also had its eye on at least three Democratic-leaning organizations seeking nonprofit status.
One of those groups, Emerge America, saw its tax-exempt status denied, forcing it to disclose its donors and pay some taxes. None of the Republican groups have said their applications were rejected.
Progress Texas, another of the organizations, faced the same lines of questioning as the Tea Party groups from the same IRS office that issued letters to the Republican-friendly applicants. A third group, Clean Elections Texas, which supports public funding of campaigns, also received IRS inquiries.
In fact, it’s worth emphasizing that the IRS, which has acknowledged making mistakes in this area and offered an awkward apology for agency missteps, noted yesterday that the “organizations of all political views” were affected by the scrutiny.
This certainly seems relevant to the larger controversy, doesn’t it? Up until now, the story has been pretty straightforward: conservative groups were subjected to unfair treatment when applying for tax-exempt 501(c)4 status. The IRS must remain politically neutral at all times and the right was fully justified in complaining that the agency fell far short of this standard.
But if several liberal groups were subjected to the same treatment, it reinforces a larger, less-partisan arc to the story: the IRS struggled to enforce ambiguous tax laws and was beset by bureaucratic bungling. The ratios certainly matter — if only a handful of left-leaning groups faced tough scrutiny, while right-wing leaning groups fared far worse, that would point to a more systemic problem — but we don’t yet know that for sure.
It would appear, then, that what’s needed is a detailed accounting. The inspector general’s report filled in many of the blanks, and I suspect we’ll get a more thorough examination with the FBI looking into the case and congressional hearings on the way.
By: Steve Benen, The Maddow Blog, May 15, 2013
“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
“Panic Is Just What Republicans Want”: Democrats Shouldn’t Take GOP’s Bait On Obamacare Implementation
The notion that Obamacare’s implementation could become a major liability for Democrats in 2014 is gaining widespread currency, and today it’s the subject of a big New York Times piece reporting on confident predictions by Republicans that implementation problems will give them a powerful weapon against Dem candidates. Obama is set to do a series of events designed to educate the public on the challenges of implementing the law, beginning with one on Friday where he’ll promote the law’s benefits for women.
It strikes me that GOP Obamacare implementation triumphalism is a tad premature.
Here is how the Times characterizes the sentiment in Dem circles about the coming war over implementation:
Democrats are worried about 2014 — a president’s party typically loses seats in midterm years — and some have gone public with concerns about the pace of carrying out the law. Senator Harry Reid of Nevada, the majority leader, told an interviewer last week that he agreed with a recent comment by Senator Max Baucus of Montana, a Democratic architect of the law, who said “a train wreck” could occur this fall if preparations fell short.
The White House has allayed some worries, with briefings for Democrats about their public education plans, including PowerPoint presentations that show areas with target populations down to the block level.
“There’s clearly some concern” among Democrats “that their constituents don’t yet have all facts on how it will work, and that Republicans are filling that vacuum with partisan talking points,” said Representative Steve Israel of New York, head of the House Democrats’ campaign committee. “And the administration must use every tool they have to get around the obstructions and make it work.”
Quotes like these are widely held up as evidence that Republicans are right that Obamacare implementation is shaping up as a major problem for Dems. But this amounts to a fundamental misreading of what it is these Dems are actually saying. Democrats are simply doing exactly what they should be doing — that is, calling for care and caution in the implementation of Obamacare, and calling for a serious effort to educate the public about the challenges and potential pitfalls it entails. This is not tantamount to running away from the law wholesale; nor is it a concession that implementation will amount to a major political albatross.
As Jonathan Cohn has detailed at length, it’s very possible there will be real problems with the health law’s implementation. If that happens, Republicans will relentlessly try to tie Dem candidates to those difficulties, in hopes for a rerun of 2010. But in 2010, public reactions to the new health law were largely suffused with deep anxiety about the severe economic crisis and uncertainty about the new president’s ability to cope with it. Republicans and allied groups made the assault on Obamacare central in 2012, in the presidential race and in many Senate contests, with absolutely nothing to show for it.
Will implementation make things different in 2014? By all means, the problems could be very real, particularly with Republicans intent on subverting implementation wherever possible. Dems should remain vigilant and prepare for turbulence. But they needn’t fret this too much. For one thing, as Josh Barro has noted, implementation is likely to be most keenly felt among those who currently lack insurance, who will naturally see getting insurance as a preferable outcome to nothing at all, even if it proves logistically difficult.
Dem candidates can strike a balance here: They can call for careful implementation and criticize it when it goes awry, while standing squarely behind the law’s overall goal of expanding coverage to the millions of Americans who lack it. What’s more, they can continue to remind the public that Republicans are offering no alternative of their own and simply want to return the country to a pre-reform free-for-all that nobody, particularly the large ranks of the uninsured, wants. This position is the correct one to take, substantively and politically, and it shouldn’t be that hard to get the balance right. After all, whatever the unpopularity of Obamacare, offering nothing in the way of reform isn’t exactly a winning message, either. Major reforms are not easy, and Dems can say so, while pointing to the endless GOP drive to repeal the law to reinforce the notion that Republicans have no interest in actually addressing the country’s most pressing problems.
Dems should refrain from displays of political panic, since panicking is exactly what Republicans want them to do. “A lot of this is psychological warfare,” is how Dem strategist Doug Thornell recently put it. “I would tell Dems not to take the bait.” So would I.
By: Greg Sargent, The Plum Line, The Washington Post, May 7, 2013
“Defying The Laws Of Political Reality”: No Dirty Politics In IRS Investigations Of Tea Party
The conservative blogosphere is all-atwitter this afternoon over the revelation that the Internal Revenue Service targeted various Tea Party groups in the days leading up to the presidential election of 2012.
Sadly for the critics of the president, things are not always as they initially appear to be and the effort to paint the improper IRS activity as a White House directed political dirty trick is unlikely to gain the traction opponents would like to see catch fire.
Keep in mind that the kerfuffle does not involve the targeting of groups for audits seeking evidence of a failure to pay taxes. Rather, the problem involved the IRS’s review of applications filed by the various entities seeking tax-exempt status under the law.
At the time in question, many newly formed political organizations were seeking IRS certification that would allow them to avoid paying taxes on funds raised—the overwhelming majority of these organizations being Tea Party related groups. As the IRS believed that many of those filing for exemptions were stretching the limits of qualification, some low-level staffers at the agency’s Cincinnati, Ohio office decided to target for closer review those organizations with “Tea Party” sounding names, such as “patriot” and, of course, “Tea Party”. In the effort to dig deeper to determine if these groups qualified, the agency people involved asked many of the filing organizations to disclose names of those who had made contributions along with other data they deemed necessary to determine if the group qualified for tax free status.
The problem is that the agents involved were not randomly conducting these checks on all the political organizations seeking tax free status and were specifically targeting the Tea Party related groups.
This was, clearly, improper activity which is why the IRS issued today’s apology.
What’s that you say? You still don’t believe that the White House was not involved in this?
That’s what I thought.
Maybe then, it will interest you to know that there are only two officials at the IRS that are political appointments—the commissioner (who is the boss) and the chief legal counsel. And while you may be thinking that it would be a piece of cake for the White House to place a call to the Commissioner and nudge him into putting a little heat on Tea Party groups so that they would be kept busy defending themselves from government annoyance rather than putting their energies into defeating the President, it would not have been quite so simple a task for the White House to accomplish.
Why?
Because the Commissioner of the Internal Revenue Service during the period in question was Douglas Shulman, a political appointee of President George W. Bush.
In fact, not only was Commissioner Shulman a Bush appointee, he would certainly have had no motivation to do the political bidding of a Democrat president considering that Mr. Shulman had already announced prior to the election that he would be stepping down from his post in November.
If you imagine that the President’s staff had the ability to go around the top political appointee at the IRS and attempt to influence the civil servants who work at the agency, consider how many levels of civil servants the White House staff would have had to persuade to do their bidding given that those who pursued the policy were well down the totem-pole of seniority, working away at the Cincinnati office.
Indeed, to suggest that the White House could get career civil servants to do its political dirty work would truly defy the laws of political reality.
If you doubt this—and you are someone who believes that the State Department behaved improperly in the Benghazi matter—consider the inability of State to direct the three highly placed State Department civil servants who testified before Congress this week to do as the politicians asked. This should give you some indication as to just how impossible it is for elected or politically appointment officials to get government civil servants to participate in their political schemes—let alone keep it all a secret heading into a presidential election.
Of course, all the obvious and logical explanations in the world for what really happened here will prove insufficient when it comes to persuading some Tea Party groups that this was not the work of the White House.
As proof of what we can expect, check out what Tea Party Patriots co-founder Jenny Beth Martin had to say when calling for President Obama to personally apologize—
“It is suspicious that the activity of these ‘low-level workers’ was unknown to IRS leadership at the time it occurred. President Obama must also apologize for his administration ignoring repeated complaints by these broad grassroots organizations of harassment by the IRS in 2012, and make concrete and transparent steps today to ensure this never happens again.”
Clearly, Ms. Martin has very little grasp on how widespread the activities of the IRS are if she imagines that, in the big picture, the relatively small number of reviews of Tea Party related applications in the Cincinnati office was going to somehow capture the attention of the IRS Commissioner…who happens to be a Republican appointee.
One wonders if Ms. Martin’s indignation has anything to do with the fact that she and her husband were indebted to the IRS in the amount of over half a million dollars when they filed bankruptcy in 2008? Maybe it is Ms. Martin who owes the apology?
Still, the opportunity to make some political hay over the error will likely prove irresistible to the GOP.
So, let the Congressional hearings commence! I can’t wait to see Darrell Issa’s movie-style poster hyping these hearings as he did in this one posted to his Twitter site to get us jazzed about his Benghazi hearings—http://b-i.forbesimg.com/rickungar/files/2013/05/issamay6.jpg
Maybe this time he’ll spring for full-color art
By: Rick Ungar, Op-Ed Contributor, Forbes, May 10, 2013
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