The House on Wednesday with little fanfare passed legislation that would protect major donors like the Koch brothers and Tom Steyer from having to pay gift taxes on huge donations to secret money political groups.
The legislation, which now heads to the Senate, is seen by fundraising operatives as removing one of the few remaining potential obstacles to unfettered big-money spending by nonprofit groups registered under a section of the Tax Code — 501(c) — that allows them to shield their donors’ identities.\\
Critics decry such groups as corrupting, but they have played an increasingly prominent role in recent elections, and they’re expected to spend huge sums in 2016.
And, while fundraising operatives say most donors do not pay taxes on their donations to so-called 501(c) groups, the law is somewhat ambiguous on whether gift taxes could be assessed. That’s left donors fearing that such gifts could bring scrutiny from the Internal Revenue Service — which, in fact, has launched probes of major groups’ donors in recent years to determine whether they improperly avoided paying gift taxes.
I guess the advantage of buying a house of Congress means that you can dictate legislation that will protect your future investments in buying the rest of the government.