IRS-Gate was crude, blunt, clumsy.
President Obama keeps claiming that he had no knowledge of the Internal Revenue Service’s abusive muzzling of conservative groups. That line is hard to swallow given that his Treasury and IRS are back at it—this time in broad daylight.
That this rule was meant to crack down on the White House’s political opponents was never in doubt. What is new is the growing concern by House Ways and Means Committee investigators that the regulation was reverse-engineered—designed to isolate and shut down the same tea party groups victimized in the first targeting round. Treasury appears to have combed through those tea party applications, compiled all the groups’ main activities, and then restricted those activities in the new rule.
“The committee has reviewed thousands of tax exempt applications,” says House Ways & Means Chairman Dave Camp. “The new regulation so closely mirrors the abused tea-party group applications, it leads me to question if this new proposed regulation is simply another form of targeting.”
Here’s how it works. To get or keep tax-exempt status, 501(c)(4) organizations must devote a majority of their work to their “primary” social-welfare purpose. Most tea party groups were set up with a primary purpose of educating Americans on pressing problems—the size of government, the erosion of the Constitution—and did so mainly via nonpartisan voter guides, speakers forums, pamphlets or voter-registration drives.
What the proposed Treasury/IRS regulation would do is to re-categorize all these efforts as “political activity”—thereby making it all but impossible for tea party groups to qualify for 501(c)(4) status. Say an outfit’s primary purpose is educating voters on our unsustainable debt, which it does mainly with a guide explaining the problem and politicians’ voting records. Under the new rule, that guide is now “political activity” (rather than “social welfare”), which likely loses the group tax-exempt status.
The rule, in other words, is not designed to provide helpful “guidance” on allowable activities. It was designed, rather, as Mr. Camp explains, “to put tea party groups out of business.”
What makes this targeting more obvious is that the Obama Treasury rule only applies to 501(c)(4) groups. The ultra-liberal League of Women Voters Education Fund is registered as a 501(c)(3)—one of those “charities” supposedly held to the strictest IRS standards on politicking. Yet it brags on its website that it holds “candidate debates and forums,” and that its “educational activities” include “understanding candidate views and ballot initiatives.”
Nor does the new rule apply the biggest spenders of all in politics—unions, which are registered as 501(c)(5)s. The only category muzzled is the one recently flooded by conservative groups that Democrats fear in the 2014 election.
Their plan is apparent. By extending welfare as broadly as possible, with illegal immigrants added to the mix—and by disenfranchising conservatives—Democrats will make ours a one-party state.