IRS and Tea Party

May 20 2013

The furor over the IRS focus on groups with "Tea Party" in their name is missing the real question that we should be more concerned with.  Why do politically motivated groups enjoy a tax exempt status in the first place?

The IRS statute 501(c) 4 specifically states that organizations are required to be operated exclusively for the promotion of social welfare, and allowed to focus on "civic betterment" and civic activities. They may engage in political campaign activities but only if those activities are not the organization's primary activity.

I think we should not allow any political group, regardless of party, to use that statute to avoid paying taxes. Why should the general taxpayer help fund any group that is  intent on pushing a political position?  I think the IRS was acting in the interest of all taxpayers by examining the eligibility of Tea Party groups for tax exempt status. After all the Tea Party emerged from political activism, and no one is fooled into believing they are a charity, a church, or a social welfare group. Instead of hounding the IRS, we should be indignant at, and hounding, the Legislators and Justices who created this tax loophole in the first place.