Proposed IRS Rule Change Fractures the LeftPosted: February 17, 2014
The revised regulations would classify social-welfare groups’ activities as political.
While Senate Republicans, following the lead of their House colleagues, are backing a bill to delay the rules for a year, and the protests of right-leaning nonprofit groups, big and small, are reaching fever pitch, Democratic politicians who are urging the IRS to move forward with the regulations have found themselves at odds with some of their largest constituencies, chief among them the country’s labor unions.
The proposed changes, which were unveiled in late November, would classify much of the day-to-day activity of 501(c)(4) social-welfare groups, including voter education and registration, as political, thereby endangering their tax-exempt status. They would also prohibit public communication 60 days before a general election or 30 days before a primary election that identifies a political candidate — that is, nearly every advertisement aired by groups such as the conservative Americans for Prosperity or the liberal League of Conservation Voters — during the period when they are most effective.
The proposed regulations have a host of left-leaning groups worried that the 501(c)(4) rules could serve as a template for regulations governing 501(c)(5) nonprofits (unions) and 501(c)(6) groups (trade associations), and they are speaking out. Service Employees International Union associate general counsel John Sullivantold the Washington Post that the proposed rules “would be totally inappropriate for unions” because they are “broadly phrased and categorical,” and that they would “seriously affect [unions’] ability to function.”
The American Civil Liberties Union, meanwhile, submitted a 26-page comment to IRS commissioner John Koskinen slamming the proposed regulations. “Social welfare organizations praise or criticize candidates for public office on the issues and they should be able to do so freely, without fear of losing or being denied tax-exempt status, even if doing so could influence a citizen’s vote,” the group wrote, calling such advocacy “the heart of our representative democracy.” The ACLU argued that, if the advocacy of social-welfare groups influences voting, it does so only by “promoting an informed citizenry.”
Then, late last week, the liberal magazine The Nation piled on with an op-edarguing that the rules would “do almost nothing to fix the things you think are broken and may, in fact, do some real damage to the ability of everyday Americans to have an impact on the political process” — that is, that groups funneling big money into the electoral process would find a way around the rules, perhaps by recategorizing themselves, while the little guy would effectively be silenced…
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- The Rights and Obligations of a U.S. Citizen (the47percentspeak.wordpress.com)
- ACLU slams Obama administration’s new IRS rules restricting nonprofit groups (dailycaller.com)
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