Thursday, September 2, 2004

Donald Tobin’s article in yesterday’s Tax Notes Today, Regulate, Not Eliminate, 527s, is now available on Ohio State’s Election Law web site. Donald’s conclusion:

Section 527 political organizations and 501(c)(4) social welfare organizations are not inherently evil. They are a necessary part of a political system that encourages free speech. What is necessary is basic regulation of these entities. Senators McCain and Feingold took the first step almost five years ago to rein in 527s through public disclosure. It is now time to recognize that most 527s are really PACs and that the same corruption concerns exist with regard to 527s as exist with candidate PACs. Once the dust settles on this election, Congress and/or the FEC should impose clear rules that treat as political committees section 527 organizations that have as their primary purpose influencing an election. Congress must also address the widening use of 501(c)(4)s to get around the disclosure provisions in section 527.