“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
“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
“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
“Of Cover-Ups And Crimes”: Editing Talking Points Is Not Even Close
Of all the crazy things people on the right are now saying about Benghazi, I’ll admit that the one that most makes me want to scream is that it’s “worse than Watergate.” I get that much of the time it’s just a way of saying “This is a big deal,” and maybe there are some of your dumber elected officials (your Goehmerts, your Bachmanns) who believe it. But the idea is so plainly absurd that sometimes it feels like they’re just trolling, saying it not because any sane person could think it’s true, but because they just want to drive me nuts.
And as long as they keep saying it, I guess we’ll have to keep reminding people with short memories what actual scandals involve. To that end, Jonathan Bernstein has a nice reminder for us about Watergate and what a real cover-up looks like, in the course of which he counters the old “It’s not the crime, it’s the cover-up” aphorism: “I’ll stick with what I always say about this: its the crime, not the cover-up, that gets people in trouble. The reason for the Watergate cover-up was that specific crimes had been committed, crimes which could have (had they been confessed to in June 1972) sent much of the senior White House staff, much of the campaign organization, and perhaps the President of the United States straight to prison.” I’d add that in the case of Watergate, the cover-up actually consisted of new crimes, added on to the original crimes.
This is an important distinction to make. As the Watergate scandal was proceeding, Nixon and his top advisors didn’t just say, “Let’s send the press secretary out to say this is all no big deal.” They committed crimes in their effort to contain the scandal. They paid hush money. They destroyed records. They committed multiple acts of obstruction of justice. And just as they should have, for those crimes, some of Nixon’s top advisors went to prison.
Everybody in politics tries to avoid looking bad, and everybody attempts to shape the news to their liking. Did the Obama administration do that with regard to the Benghazi story? Sure, just like every administration does every day, not to mention every member of Congress. They portray themselves as noble and courageous, and their opponents as craven and cynical. They encourage reporters to talk about issues that make them look better, and ignore topics that make them look worse. But when you call those efforts a “cover-up,” you’re implying something much more serious. There was a cover-up in Watergate, and people went to jail for it. There was a cover-up in Iran-Contra—Oliver North, currently appearing on Fox News to express outrage at the Obama administration, perjured himself before Congress and shredded incriminating White House documents to hide the Reagan administration’s illegal and morally abhorrent scheme. That’s a cover-up. Editing talking points? Not even close.
By: Paul Waldman, Contributing Editor, The American Prospect, May 14, 2013
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