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“We have a system that increasingly taxes work and subsidizes nonwork.” — Milton Friedman

IRS targets Ron Paul’s Campaign for Liberty

The Internal Revenue Service is still targeting conservative and liberty-minded groups, nearly a year after now-disgraced agency official Lois Lerner admitted to the inappropriate scrutiny.

In an email on Thursday, former Rep. Ron Paul (R-TX) told supporters that Campaign for Liberty is now under fire from the IRS. The powerful tax agency, he says, has just hit the liberty-minded nonprofit with “a hefty fine” and “demanded” that it “turn over sensitive contributor information.”

“This is one of the toughest letters I’ve ever had to send,” Paul wrote to supporters. “For years, people have joked that the three most feared letters in the English language may well be these … I – R – S.”

“But today, I’m not laughing,” said Paul. “Just days ago, the IRS handed Campaign for Liberty a hefty fine and DEMANDED we turn over sensitive contributor information.”

Paul explained that failure to comply with the IRS’s demands could mean additional fines that could severely impact the work that Campaign for Liberty is doing and possibly force the group to shut down.

Because Campaign for Liberty is a 501(c)(4), donor information is supposed to be confidential. The organization, like many others targeted by the IRS, promotes economic and individual liberty and focuses its efforts on grassroots activism and education. It does not endorse candidates, in which case the organization would have to disclose

NY Times backs IRS’s anti-political speech rules

The New York Times’ editorial board — packed with purported journalists who make their living under the protections of the First Amendment — is strongly backing the Treasury Department and Internal Revenue Service’s proposed rules that would limit nonprofit groups from engaging in debates over public policy:

The problem of secret money began in 2010, with the loosening of rules that was prompted in part by the Supreme Court’s Citizens United decision. Political operatives like Karl Rove realized that “social welfare” groups were allowed by the tax code to accept unlimited donations that did not have to be disclosed. They could then use that money to run political attack ads. Though the tax code says the groups, known as 501(c)(4)s, could not be engaged primarily in political activity and still keep their tax exemption, that was easy enough to get around by claiming the ads had some kind of civic purpose.

By the 2012 election, these groups were spending $300 million and were often the dominant voice in major races. The Koch brothers, in particular, got around the tax code provision by moving tens of millions among a huge number of nonprofits so that it was almost impossible to determine the purpose of each group, let alone who the donors were.


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