[EL] Check out Super-PACs: Little From Corporations - Bloomberg

[John Pomeranz]

I agree with Brad on this one:  The IRS would treat the Crossroads GPS ad that Adam has linked to as campaign intervention (i.e. "exempt function activity" under section 527(e) of the Internal Revenue Code), and the ad would not count as part of the "social welfare activity" that must be the primary purpose of the organization under its claimed 501(c)(4) status.

It's always important to remember that the definition of electioneering for tax purposes is substantially broader than the scope of activities that the courts have held to be regulable under election laws (despite repeated efforts to bring First Amendment challenges to the tax-law limits).


John Pomeranz
Harmon, Curran, Spielberg & Eisenberg, LLP
1726 M Street, NW, Suite 600
Washington, DC  20036
p: 202.328.3500
f: 202.328.6918
e: jpomeranz at harmoncurran.com



From: law-election-bounces at department-lists.uci.edu [mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of Smith, Brad
Sent: Friday, July 13, 2012 9:14 AM
To: Adam Bonin; law-election at uci.edu
Subject: Re: [EL] Check out Super-PACs: Little From Corporations - Bloomberg

You mean only if there is a meaningful difference in the types of speech c4s and c6s can engage in in terms of the majority of their spending that may not be for political campaign purposes. Obviously, there will be adds from c4s, such as the one you link, that are not much or any different from those run by 527s - that it is the political activity that c4s can do so long as it is not their primary activity. That still leaves an effective 50%+ tax if your goal is pure political activity.


Bradley A. Smith

Josiah H. Blackmore II/Shirley M. Nault

   Professor of Law

Capital University Law School

303 E. Broad St.

Columbus, OH 43215

614.236.6317

http://law.capital.edu/faculty/bios/bsmith.aspx

________________________________
From: Adam Bonin [adam at boninlaw.com]
Sent: Friday, July 13, 2012 9:07 AM
To: Smith, Brad; law-election at uci.edu<mailto:law-election at uci.edu>
Subject: RE: [EL] Check out Super-PACs: Little From Corporations - Bloomberg
Only if you believe there's a meaningful difference in the types of speech c4s and c6s can engage in, compared to SuperPACs. This Crossroads GPS ad, for example, is pure c4: http://www.youtube.com/watch?v=PdIKr_zX7FE

-Adam

From: Smith, Brad [mailto:BSmith at law.capital.edu]<mailto:[mailto:BSmith at law.capital.edu]>
Sent: Friday, July 13, 2012 9:03 AM
To: Adam Bonin; law-election at uci.edu<mailto:law-election at uci.edu>
Subject: RE: [EL] Check out Super-PACs: Little From Corporations - Bloomberg

Because all the money contributed can be used for direct political activity. Using a c4 or c6 essentially imposes a 50% tax on your political expenditures.


Bradley A. Smith

Josiah H. Blackmore II/Shirley M. Nault

   Professor of Law

Capital University Law School

303 E. Broad St.

Columbus, OH 43215

614.236.6317

http://law.capital.edu/faculty/bios/bsmith.aspx

________________________________
From: law-election-bounces at department-lists.uci.edu<mailto:law-election-bounces at department-lists.uci.edu> [law-election-bounces at department-lists.uci.edu] on behalf of Adam Bonin [adam at boninlaw.com]
Sent: Friday, July 13, 2012 8:48 AM
To: JBoppjr at aol.com<mailto:JBoppjr at aol.com>; rhasen at law.uci.edu<mailto:rhasen at law.uci.edu>; law-election at uci.edu<mailto:law-election at uci.edu>
Subject: Re: [EL] Check out Super-PACs: Little From Corporations - Bloomberg
Why would any corporation contribute directly to a publicly-disclosed SuperPAC when they can instead engage in political activities via 501c4s and 501c6s?


Adam C. Bonin
The Law Office of Adam C. Bonin
1900 Market Street, 4th Floor
Philadelphia, PA 19103
(215) 864-8002 (w)
(215) 701-2321 (f)
(267) 242-5014 (c)
adam at boninlaw.com<mailto:adam at boninlaw.com>
http://www.boninlaw.com<http://www.boninlaw.com/>



From: law-election-bounces at department-lists.uci.edu<mailto:law-election-bounces at department-lists.uci.edu> [mailto:law-election-bounces at department-lists.uci.edu]<mailto:[mailto:law-election-bounces at department-lists.uci.edu]> On Behalf Of JBoppjr at aol.com<mailto:JBoppjr at aol.com>
Sent: Friday, July 13, 2012 8:37 AM
To: rhasen at law.uci.edu<mailto:rhasen at law.uci.edu>; law-election at uci.edu<mailto:law-election at uci.edu>
Subject: [EL] Check out Super-PACs: Little From Corporations - Bloomberg

This is disappointing but not unexpected, at least by me.  Only 7.6% of contributions to Super PACs are from corporations and almost all of these are privately held corps.  This means almost no participation by publicly held corps.  Another anti-CU fantasy dispelled, just like the "foreign money" fantasy.  Jim Bopp

Click here: Super-PACs: Little From Corporations - Bloomberg<http://go.bloomberg.com/political-capital/2012-07-12/super-pacs-little-from-corporations/>
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