Groups exploit tax loophole, avoid campaign laws-C F R Thread, Day 107

Campaign finance reform enacted in 2002 may restrict some donations, but a huge loophole in the new law is allowing some groups unchecked power in elections across the country. Independent organizations can no longer raise huge sums of unregulated campaign contributions after the 2002 legislation created by Sen. John McCain (R-Ariz.). However, nonprofit groups formed under Section 527 of the Internal Revenue Service tax code have become important players in many elections.

527s are "considered a loophole in campaign finance reform," political analyst Terry Madonna said. This is the first year that the campaign finance reform has taken effect.

The committees are not technically connected with a candidate and do not collect hard money -- instead money is donated directly to a candidate from a donor. As a result, the groups can make media purchases in support of candidates that can use millions of dollars in private contributions from wealthy donors.

The groups are allowed to spend money on advertisements as long as they refrain from coordinating with a candidate or naming the specific candidate that they support.

This type of committee has been especially active in the U.S. Senate race for the Pennsylvania Republican nomination between Pat Toomey and Arlen Specter.

527s "have been very, very active on behalf of Toomey," Madonna said, "pumping sizeable sums of money" into television advertising.

Specter spokesman Christopher Nicholas argued that 527s, like the conservative Club for Growth, are illegally organizing with Toomey's campaign.

"The Club for Growth's number one priority besides the presidential race is the defeat of Sen. Arlen Specter," said Nicholas, adding that the campaign and the 527 have been "leapfrogging" each other, buying advertisements on alternating weeks.

"The club uses its 527 IRS nonprofit status to raise unlimited contributions from individuals and organizations to fund its 'independent' advertising against candidates," Nicholas said. "By the end of March, the club will have spent $950,000 on TV ads attacking Specter, according to public records on file with the state's TV stations."

Toomey spokesman Mark Dion said 527s have the right to use their money in support of any candidate they choose.

"The way that the law is structured, groups have a First Amendment right to voice their opinions about certain candidates," he said, adding that the Club for Growth and other groups are "outside the scope" of the Toomey campaign.

Dion added that the Specter campaign also receives support from 527s and cited the Republican Main Street Partnership as a contributing voice against Toomey.

527s have played a role in the presidential election as well, with some groups emerging as strong voices against President George W. Bush.

Although Sen. John Kerry's (D-Mass.) campaign maintains that it does not directly coordinate with 527s, television advertisements criticizing Bush have appeared from both MoveOn.org and the Media Fund.

Bush has a significant lead on Kerry in individual fundraising, but analysts say the Kerry campaign could make up the difference in support from 527s.

Because of the significant role the 527s have played already this year, the Federal Election Commission is looking into new regulations to restrict the activity of the organizations. They are set to vote on the issue on May 13.

First Amendment Restoration Act
Bill # H.R.3801

Original Sponsor:
Roscoe Bartlett (R-MD 6th)

Cosponsor Total: 49
(last sponsor added 03/24/2004)
2 Democrats
47 Republicans

About This Legislation:
Washington, D.C. is often referred to as "Inside the Beltway" or "Belly of the Beast." A more appropriate reference, however, is "The Twilight Zone."

In 1961, there was an episode of "The Twilight Zone" titled "The Obsolete Man." In that episode, the government finds a librarian to be obsolete and sentences him to liquidation.

Has that eerie bit of 1961 fiction become a chilling reality today?
Congress, the president, and the Supreme Court have, with the Bipartisan Campaign Reform Act of 2002 (McCain-Feingold), found political speech by average American citizens to be...obsolete. What will government mandate next...liquidation?

On February 11, 2004, Congressman Roscoe Bartlett, along with several other members of The Liberty Caucus, introduced the "First Amendment Restoration Act" (H.R. 3801). This legislation would restore Americans' First Amendment rights by repealing sections of the McCain-Feingold law that forbid issue-advocacy groups, such as The Liberty Committee, Gun Owners of America, American Conservative Union, Concerned Women of America and the National Rifle Association, to inform their members about important issues and votes relative to incumbent candidates during the 30 and 60 days before primary and general elections.

So during that 30-60 day period when the U.S. Congress takes a vote on abortion, immigration, gun control, United Nations, taxes, treaties, etc., we won't be able to tell you about it without committing a federal crime and risking jail time! Even a simple E-mail alert will violate the law!

McCain-Feingold, passed by Congress, signed by President Bush, and affirmed by the Supreme Court, muzzles the average American who doesn't have a high-priced lobbyist to represent his views in our nation's capital. Under the guise of "cleaning up our political process," incumbent politicians increase their job security by making it illegal for average Americans to participate.

The Liberty Committee strongly supports H.R. 3801 and encourages you to speak in favor of this critical legislation -- while you still can. Don't let the political elite make you "The Obsolete Man."
http://capwiz.com/liberty/issues/bills/?bill=5269186

Special to FreeRepublic | 17 December 2003 | John Armor (Congressman Billybob)

This is nothing like the usual whine by someone whose post was pulled. JimRob pulled my previous thread for a good reason. "If direct fund-raising were permitted on FR, it would soon be wall-to-wall fund-raising."

So, let's start again correctly. This is about civil disobedience to support the First Amendment and challenge the TERRIBLE CFR decision of the Supreme Court to uphold a terrible law passed by Congress and signed by President Bush.

All who are interested in an in-your-face challenge to the 30- and 60-day ad ban in the Campaign Finance "Reform" Act, please join in. The pattern is this: I'm looking for at least 1,000 people to help the effort. I will run the ad, and risk fines or jail time to make it work -- AND get national support.

But there should be NO mentions of money in this thread, and not in Freepmail either. This is JimRob's electronic home, and we should all abide his concerns.

Put your comments here. Click on the link above, and send me your e-mail addresses. I will get back to you by regular e-mail with the practical details.

This CAN be done. This SHOULD be done. But it MUST be done in accord with JimRob's guidelines.

Fair enough?
http://www.freerepublic.com/focus/f-news/1042394/posts

Update
I've already tested the idea of my in-your-face challenge ads, first in the print media and then deliberately illegal on TV, with certain editors I have a long relationship with. I could trust these two gentlemen, one in the print media and the other in the broadcast media, with a "heads up" on what I am planning. Both said they wanted to know, in advance, when I am about to do this.

The bottom line is clear. If I am willing to put my neck on the line, with the possibilities of a fine and jail time, THAT effort will put CFR back on the front page in all media. And that is part of the point. There's not much value of going in-your-face against the enemies of the First Amendment unless the press takes up the story and spreads the word. It is now clear they will do exactly that.

Update 2
QUICK PROGRESS REPORT, ANSWERING A SUPPORTER'S QUESTION:
We have about 15% of the needed 1,000 sign-ups.

Spread the word, direct folks to the front page link on my website.

Google-bomb the phrase "anti-CFR" directing readers to that page and link. (We're already #2 and #4 on Google.)

Target date is now August, since the NC primary looks to be put back to September. (Remember, the ad isn't illegal until the 29th day before the election.)

Cordially,

John / Billybob

Note if you are interested in more on this please contact Valin or Congressman Billybob

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