GOP Old and Brokedown: "We will stop the IRS from investigating Tea Party poliical groups! They are unfairly being targeted for political reasons! SCANDAL! IMPEACH! HEADS WILL ROLL!"
New Hotness: "Why didn't the IRS protect us from these fraudulent Tea Party political groups?"
In the last few years, political organizations of various kinds have proliferated, as all kinds of people seek to take advantage of the post-Citizens United world in which money can flow in so many directions. This has provided a splendid opportunity for the participants in an old game, one in which gullible conservatives are scammed out of their money by a seemingly limitless number of con artists.
Some of those con artists are obscure consultants and operators, but some of them are quite famous, which we’ll get to in a bit. But today, John Hawkins of Right Wing News released a report on a group of conservative PACs that took in millions of dollars in contributions in 2014, ostensibly for the purpose of electing Republicans, but spent almost none of it on actual political activity. Instead, the money went into the pockets of the people who run the PACs and their associates. Jonah Goldberg, reacting to the report, calls this the “right wing scam machine.”
Perhaps instead of investigating the IRS, you might want to ask why Republican lawmakers weren't investigating these scam artists.
For example, let me tell you how conservatives can be (and have been) ripped off by scam groups. Let’s say Ronald Reagan is still alive and someone starts the Re-Elect Ronald Reagan To A Third Term PAC. Because people love Reagan, let’s suppose that conservative donors pony up $500,000 to help the organization. However, the donors don’t know that Ronald Reagan has nothing to do with the PAC. Furthermore, the real goal of the PAC is to line the pockets of its owner, not to help Ronald Reagan. So, the PAC sets up two vendors, both controlled by the PAC owner: Scam Vendor #1 and Scam Vendor #2. Let’s assume it costs $50,000 to raise the half million the PAC takes in. Then, the PAC sends $100,000 to the first company and $100,000 to the second company to “promote Ronald Reagan for President.”
Each of the companies then goes out and spends $1,000 on fliers. The “independent expenditures” that show up on the FEC report? They’re at 40%. That’s because the FEC doesn’t require vendors to disclose how much of the money they receive is eaten up as overhead. The dubious net benefit that Ronald Reagan receives from an organization that raised $500,000 on his name? It’s $2,000. On the other hand, the net profit for the PAC owner is $448,000. Is that legal? The short answer is, “It’s a bit of a grey area, but, yes, it is legal.”
Huh. If there was only some government agency that would take a look at PAC expenditures and issue rules of conduct that prevent such actions.
That tradition continues, but in new and more complicated ways that I like to call the circle of scam. Organizations like the Heritage Foundation and FreedomWorks pay radio hosts like Rush Limbaugh and Sean Hannity big money to offer on-air endorsements that are the radio equivalent of “native advertising.” Future presidential candidate Mike Huckabee sells his email list on “miracle cancer cures” hidden in the Bible. Conservative media figures like Dick Morris solicit contributions that somehow are never turned to the political ends they claim. Nobody wants to upend the system, because too many people are getting a taste.
The common thread can be found in the marks: the little old lady in Tupelo who sends in $50 thinking that she’s striking a blow against Barack Obama, the couple in Topeka who hopes Mike Huckabee’s biblical cancer cure can save their daughter’s life, the man in Toledo who thinks that the group with “Tea Party” in its name is going to have an impact on his state’s races. What none of them know is that their money is just going to make somebody who’s already rich a little bit richer.
So even the big name right-wing groups are scamming people out of millions. And there's millions of suckers feeding them money constantly.
You wonder if now the right-wing wants campaign finance reform after it turns out they were played for chumps and suckers?