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View Diary: The next biggest scandal ever, until the next one (163 comments)

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  •  Not exactly (0+ / 0-)

    As I understand it, donors cannot deduct contributions to a 501(c)(4), only a (c)(3). It's the (c)(4)s that are the subject of the latest inquiry.

    The issue with (c)(4)s is that the entity is tax-exempt (not a biggy as they're not set up to make a profit -- it's all money-in-money-out), AND can accept unlimited amounts from individuals and corporations (unlike official campaign organizations), AND -- most important -- unlike official political organizations, does not have to disclose the identities of donors.

    So they're being used as an end-run around the campaign finance laws, not really as a tax dodge. The fact that it's the IRS doing the policing is the real anomaly; it should be the Federal Election Commission, IMO.

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