Talking Points Memo: Wisconsin Dems File Complaint With State Against David Koch

-By Eric Kleefeld

February 23, 2012- The Wisconsin Democrats are taking aim at one of their biggest opponents in the state’s recall elections. No, not just Republican Gov. Scott Walker — but conservative financier David Koch, and his organization Americans For Prosperity. But whether they will actually succeed in the latest front is another question.

Specifically, the Dems announced on a conference call with reporters Thursday that they were filing a complaint with the state Government Accountability Board, which oversees elections in the state, and also forwarding a copy to the Internal Revenue Service at the federal level. The complaint involves statements that Koch made to a newspaper — and his organization’s official non-profit, non-partisan status.

“We’re helping him, as we should. We’ve gotten pretty good at this over the years,” Koch told the Palm Beach Post in a profile story published this past weekend. “We’ve spent a lot of money in Wisconsin. We’re going to spend more.”

“These organizations are a farce,” said Wisconsin Democratic Party Chairman Mike Tate, referring to AFP’s 501(c)(3) status, as well as that of a state level conservative organization the MacIver Institute. “This designation allows an organization to accept tax-deductible contributions and further provides that they are not required to disclose their donors, nor are they required to report their spending until after an election has taken place.”

He further added: “But to maintain this status, a 501(c)(3) is prohibited from engaging in ‘activities which constitute participation or intervention in a political campaign on behalf of or in opposition to a candidate.’”

Reporters on the phone call, however, voiced various notes of skepticism about whether this would lead to an investigation, noting the recent proliferation of 501(c)(3) organizations that have become active voices in political discourse. But Tate stood his ground.

“Well I think what we have here is a very clear admission from David Koch that he is using and abusing this loophole in IRS code and election law to spend tax-deductible money to the benefit of a candidate,” said Tate. “And while there may seem to be no real rules in Wisconsin politics or federally anymore, we think this is such an affront to the Wisconsin standard of open and clean government that we must take a stand here, and this is worthy of investigating.”


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