Exclusive

Among the “scandals” plaguing the Obama administration the one that interests me at the moment concerns the scrutiny given applications from right wing “Social Service” organizations for tax exempt status. A logical place to start is with the rules, or law if you prefer, as written by Congress in 1954. It states that for an organization to be eligible for tax exemption it must be “not organized for profit but operated exclusively(italics mine) for promotion of Social Welfare.” This rule is still on the books. In 1959 the IRS, on no authority other than its own, changed the wording of the practice, not the law, from “exclusively” to “primarily.”

A change from zero tolerance to a theoretical 49% makes it harder for the IRS inspectors to monitor this requirement which involves more than a random selection of audits. Some groups are statistically more likely to cheat than others. Outfits with letterheads including the words “Tea Party” and Patriot” are suspect, particularly when they debut in an election year. These are mostly small operations. Serious righties like Karl Rove use non-committal letterheads like “Crossroads.” Words like “minority rights” or “choice” would also draw red flags. But either there are fewer of them, or lefties are more subtle.

This unique IRS interpretation has been with us for more than half a century and wasn’t as much of a problem until Citizens United. Now corporations as “people” also qualify for this tax exemption, so the agency’s work load has increased considerably while Congress has cut its budget.

Whoever is to blame for what has happened, the solution is obvious. Simply enforce the law as it stands. No legislation is needed and no potential filibuster stands in the way. Many Americans, possibly a majority, oppose public financing of political campaigns. Something on the order of “what, my tax money being spent to pay for these crooks’ elections” is common parlance. Yet this is precisely what is happening with as much as 49% of many “charitable” donations and more in some cases. These organizations cannot be primarily and legallylegitimate unless they are runexclusively for social service.