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Comments by YACCS
Tuesday, September 19, 2006

The DLC loses tax exempt status

What? We are partisan now? Not true. We
love to stab Democrats in the back

DLC loses tax-exempt status; responds hilariously
by movie buff
Sun Sep 17, 2006 at 05:43:42 PM PDT

If this has been diaried, I'll delete, but I caught this just now and thought it was too priceless to pass up.

Via correntewire from Forbes Magazine (where it's behind a membership firewall) comes this inspiring human interest story about our poor, beleagered friends over at the Democratic Leadership Council losing their tax-exempt status for being too, well...partisan.

Will wonders ever cease? Join me after the flip.

Now, in a previously unreported action, the Internal Revenue Service has revoked the DLC's tax exemption on the grounds that it primarily benefited a private group--Democrats, and particularly "New Democrats" running for or holding office--rather than the community at large. The DLC has sued in federal court to overturn the decision;

Of course, no true sob story would be complete without a tragic helping of irony. For little did we know, "benefit" is now a synonym of "contaminate." But perhaps the sordid details of this plot will reveal where we, as a society, with our labyrinthine tax laws, went so horribly wrong that we allowed ourselves to do a grave injustice to that little lamb of God, Al From:

The DLC isn't a 501(c)(3) charity like the United Way. It won exemption in 1986 under section 501(c)(4) of the code, covering civic and social welfare groups. Contributions to civic groups aren't deductible. But 501(c)(4)s are allowed to lobby more than charities and to even get involved in partisan politics. The National Rifle Association,, Planned Parenthood and the National Right to Life Committee are all 501(c)(4)s.

What's the practical value of a (c)(4) designation if it doesn't generate writeoffs for its donors? A (c)(4) isn't taxed as a for-profit business would be and doesn't have to disclose its donors, as a political action committee does.

So are you sobbing yet? Hold on, I'm getting to the good part, where our brave hero responds to these baseless charges:

The [Democratic Leadership Council] responds that its exclusive purpose is to develop and promote its "Third Way" agenda and that some causes it has lobbied for--e.g., welfare reform, fast-track approval of free-trade agreements--got more Republican than Democratic votes in Congress.

There it is. The twist of the knife. The hero removes his mask.

Now what's this about not wanting to reveal their donors?


posted by Steve @ 12:47:00 AM

12:47:00 AM

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