Paul L. Caron
Dean
Pepperdine Caruso
School of Law
Political News
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Would a President Bachmann Be Best Positioned to Lead Tax Reform Effort?
Amy S. Elliott, Tax Background Key to Bachmann’s Presidential Pitch, 132 Tax Notes 114 (July 11, 2011): It’s a notion with a certain logic: Who would be better to spearhead top-to-bottom tax reform than a former tax attorney? If enough voters buy that argument, Rep. Michele Bachmann, R-Minn., a presidential candidate and a former IRS attorney,…
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Should Media Matters Lose its § 501(c)(3) Tax-Exempt Status?
Washington Times, Taxpayers’ Subsidization of War on Fox News, by C. Boyden Gray: Media Matters for America was originally established as a § 501(c)(3) organization, that is, an organization that can receive tax-deductible contributions to engage in educational activities. The more precise purpose was to counter alleged media bias and so to “identify occurrences of excessive…
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Will the Gift Tax Save John Edwards?
With today’s indictment of John Edwards on charges that he violated campaign-finance laws by accepting $925,000 from donors to conceal an extramarital affair with Rielle Hunter and resulting pregnancy, one element sure to be central to his defense is that his major donor treated the payments as gifts and reported them on gift tax returns. From the Los…
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Barone, Froomkin on the IRS’s Use of the Gift Tax Against § 501(c)(4) Groups
Washington Examiner, Obama Skirts Rule of Law to Reward Pals, Punish Foes, by Michael Barone: One basic principle of the rule of law is that laws apply to everybody. If the sign says “No Parking,” you’re not supposed to park there even if you’re a pal of the alderman. Another principle of the rule of…
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Does Newt Gingrich Have a Tax Problem?
The Associated Press reports that Republican presidential candidate Newt Gingrich has a tax problem: Companies run by Republican presidential candidate Newt Gingrich have faced overdue tax bills in four states worth more than $6,000. Records reviewed by The Associated Press show the tax liens ranged from a $195 property tax bill in the Atlanta suburbs…
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IRS Denies Political influence in Gift Tax Scrutiny of 501(c)(4) Groups
Following up on this morning’s post, NY Times: IRS Moves to Tax Contributions to 501(c)(4) Political Grups: Bloomberg, IRS Denies Outside Influence Sparked Gift Tax Investigations: The IRS says the agency wasn’t pressured into investigating whether a levy on gifts should be applied to some contributions to political advocacy groups. The IRS said in a…
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Alabama Governor Pays Taxes on IRA Withdrawals Used to Fund Campaign
Associated Press, Alabama Governor Pays Extra Tax for IRA Use: Gov. Robert Bentley paid almost $200,000 in taxes for financing his successful gubernatorial campaign out of retirement savings. … Bentley’s tax returns show he had $760,740 in income for 2010, but $650,000 of that was withdrawn from his IRA to lend to his campaign for governor. Bentley had…
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Sen. McCaskill Owes $287k in Back Taxes on Private Plane
Sen. Claire McCaskill (D-MO) admitted yesterday that she has failed to pay nearly $287,000 in presonal property taxes on her usage of a private plane. The Hill New York Times NPR Politico Real Clear Politics Wall Street Journal Washington Post Update: Legal Insurrection:
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Rahm Emanuel Faces Tax Return Questions in Hearing to Establish Residency for Mayoral Run
The Chicago Tribune is live-blogging the Chicago Board of Elections hearing today to determine whether former White House Chief of Staff Rahm Emanuel meets the residency requirement for running for mayor. According to the Chicago Sun-Times, one of the key issues is his 2009 state income tax return: On the original Illinois return, in response to the question,…
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Colbert on President Obama’s Tax Deal With the Republicans
The Colbert Report Mon – Thurs 11:30pm / 10:30c The Word – Unrequited Gov www.colbertnation.com Colbert Report Full Episodes 2010 Election March to Keep Fear Alive
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Susan Pace Hamill Loses Alabama House Bid
Tax Prof Susan Pace Hamill (Alabama) lost her bid for the Alabama state house (District 63), 64%-36%, to Republican Bill Poole.
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Tobin: CEOs Shouldn’t Use Corporate Treasury as Personal Political Piggy Bank
Roll Call, CEOs Shouldn’t Use Corporate Treasury as Personal Political Piggy Bank, by Donal B. Tobin (Ohio State): Recent reports indicate that News Corp., based on the wishes of CEO Rupert Murdoch, contributed $1 million to the Republican Governors Association, and through it, to Ohio gubernatorial candidate John Kasich. This contribution could create legal problems…
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Aprill: Section 501(c)(4) Organizations, the Gift Tax, and the Disclosure Rules
Ellen P. Aprill (Loyola-L.A.), Section 501(c)(4) Organizations, the Gift Tax, and the Disclosure Rules: Recent discussions of whether gifts to § 501(c)(4) organizations that engage in candidate-related activity are subject to the federal gift tax have failed to make clear an important distinction. This important distinction is whether the contributor is making the gift to…
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WSJ: GOP Should Just Say No to the FAIR Tax
Wall Street Journal editorial, The FAIR Tax Trap: Democrats Turn a Conservative Fad Against GOP Candidates: Public anxiety over rising taxes is helping Republicans in this midterm election—with one exception. Democrats are trying to turn the tables on the GOP over the so-called FAIR Tax, a tax reform idea that has bounced around conservative circles…
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Harry Reid Voted to Raise Taxes ‘Only’ 51 Times
FactCheck.org, Tall Tax Tales: In the Nevada Senate Race, Angle Makes the Inflated Claim that Reid Raised Taxes 300 Times: Republican Sharron Angle says in a TV ad that Nevada Sen. Harry Reid “voted to raise taxes” 300 times. A “staggering 300 times.” He didn’t. We reviewed the 304 votes provided by the Angle campaign and found its…
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Single-Funder Groups Skirt Campaign Finance Laws
Huffington Post, The One-Person Funded Super PAC: How Wealthy Donors Can Skirt Campaign Finance Restrictions: With many outside political groups able to raise and spend unlimited amounts of money in the wake of the Supreme Court’s Citizen United decision, a new type of independent expenditure has popped up: ones bankrolled completely by just one donor.…
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Georgia Candidate for Governor Admits He Claimed Depreciation Deductions on Home He Gave to His Daughter
Following up on my prior post, Georgia Governor’s Race: How Did Candidate Pay 2% Tax on $400k Income? (Oct. 11, 2010): Augusta Chronicle, Tax Errors Mean Barnes Owes $7,500: Roy Barnes claimed federal and state income tax breaks in 2008 and 2009 for depreciation on a house he doesn’t own, his campaign acknowledged Thursday. Cobb…
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NY Times: The Unnoticed Obama Tax Cut
New York Times, From Obama, the Tax Cut Nobody Heard Of: What if a president cut Americans’ income taxes by $116 billion and nobody noticed? … In a troubling sign for Democrats as they head into the midterm elections, their signature tax cut of the past two years, which decreased income taxes by up to…
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NY Times: § 501(c)(4) Groups Push Tax Code Limits in Political Ads
New York Times, Groups Push Legal Limits in Advertising, by Michael Luo: The basic rule of thumb for nonprofit groups organized under Section 501(c) of the tax code is that more than 50% of their annual activities cannot be political. Although it is a matter of debate how spending on traditional issue ads would be…
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Obama Attacks Republicans on Tax Policy
In his Saturday radio address, President Obama attacked Republicans over tax policy, accusing them of favoring corporate tax loopholes that encourage companies to create jobs overseas. ABC News, Weeks to Election Day, Obama Draws Line in the Sand Over Tax Loopholes Associated Press, Obama: End Tax Breaks to Stop Overseas Hiring Bloomberg, Obama Says Tax…
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Forbes: Are Contributions to 501(c)(4) Groups Subject to the Gift Tax?
Forbes, Hey, Secret Big Political Donor, Don’t Forget The 35% Gift Tax, by William P. Barrett: In the run-up to next month’s elections, a big and controversial development has been the ability of tycoons to make unlimited political donations without any public disclosure whatsoever. This is done by giving the money to certain 501(c)(4) organizations–so-named…
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WSJ: Estate Tax Rises as Issue on Campaign Trail
Wall Street Journal, Estate-Tax Rises Again as Issue on Trail: A move to end the estate-tax is luring new adherents in the 2010 midterm campaign, turning permanent repeal into a negotiating stance for future congressional wrangling over taxes. More than 250 current congressional candidates, mostly Republicans, have signed a pledge this year to support elimination…
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Coons Is the Taxman
CoonsTheTaxman.com: ‘Hide Your Will. Hide Your Lights. ‘Cause He’s Taxing Everything Out Here” New York Times, Casting an Opponent as ‘The Taxman’ Gawker, Scary New Christine O’Donnell Ad Channels ‘Bed Intruder Song’ Politico, Christine O’Donnell Ad: Chris Coons Is ‘the Taxman’ Washington Post, O’Donnell Video: The Tax Man Cometh
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NY Times Calls on Justice Thomas’s Wife to Disclose Donors to § 501(c)(4) Group
A New York Times editorial today calls on Liberty Central, a tax-exempt § 501(c)(4) organization formed in November 2009 by Virginia Thomas, wife of Supreme Court Justice Clarence Thomas, to disclose its donors (even though § 501(c)(4) does not require such disclosure). The editorial follows last Friday’s New York Times article, Activism of Thomas’s Wife Could Raise…
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Joe Biden Invites Nation’s Women to Tax Code Discussion at Mountain Chalet
Biden Invites Nation’s Women To Tax Code Discussion At Private Mountain Chalet