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By Mark Davis
The nation founders, the Lone Star State thrives
Topic - Michael Toner
A leading campaign watchdog group is pushing back in the roiling debate over how the IRS treats a new class of tax-exempt "social welfare" groups that critics say are exploiting legal loopholes to engage in political activities.
With the Supreme Court weighing a challenge to the federal ceiling on campaign contributions by individual donors in an election cycle, a number of big donors from both parties are poised to bust through the old limits if the high court rules their way, according to a new report.
"I think it's going to be uphill legally to get the courts to invalidate the current IRS regulations governing 501(c)(4) entities, particularly given that the regulations have been on the books for more than 50 years and given that entities across the ideological spectrum would be adversely affected if the regulations were struck down," Mr. Toner said. "The real litigation action is going to take place if the IRS proceeds to issue new regulations concerning 501(c)(4) entities; if that happens, we can expect a flurry of lawsuits to be filed."
"Fighting additional IRS restrictions on 501(c)(4) entities is one area where advocacy groups on the far left and the far right agree; they are strange bedfellows on this issue," he said. "What's different about this campaign finance debate is that it's not just right-of-center organizations that are opposed to the imposition of additional restrictions on 501(c)(4) entities; both liberal and conservative groups are fighting this battle."