Wednesday, February 17, 2010

The Tax Code And The Citizens United Decision

I assume most of us are troubled by the USSC Citizens United decision. While I’m all in favor of an amendment to clarify that constitutionally a person can only be a NATURAL person not an artificial one, the bar to passing a constitutional amendment is ridiculously high and could take years to pass… if ever.

But are there are other possible avenues of attack to push corporations out of politics?

What about the IRS tax code?
Currently religious and non-profit entities receive tax-exempt status on the condition they NOT engage in political campaign activities. This is NOT considered a restraint on their First Amendment free speech laws. If these groups violate this agreement, they lose that perk.
http://www.irs.gov/newsroom/article/0,,id=161131,00.html

Corporations receive numerous benefits such as limited liability protections and tax benefits such as the ability to write off expenses all designed to facilitate commerce.
Why can’t the tax code be changed to make these tax benefits conditional on corporations NOT engaging in political campaign activities?

Technically this would NOT be a restraint on corporate free speech any more than it is with those religious and non-profit organizations.

Corporations, likewise, would remain free to engage in political activities. Only they, too, would be faced with the choice that such involvement would end all of those special benefits in the tax code. Changing IRS code could possibly be done in time to prevent a massive avalanche of corporate money from affecting this year’s election.

Currently a proposal floated by Sen. Chuck Schumer and Rep. Chris Van Hollen does NOT include this approach. You can read their proposal here: http://vanhollen.house.gov/News/DocumentSingle.aspx?DocumentID=169969

I urge you to contact Chuck Schumer at 202-224-6542 and Chris Van Hollen at (202) 225-5341.

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