The documents reviewed by the Minority staff raise several issues with respect to [Americans for Tax Reform]’s compliance with current tax laws. As a threshold issue, many of the activities alleged in the e-mails reviewed by the Minority staff indicate that ATR may not be primarily operating to further social welfare purposes, which is a necessary condition of tax-exempt status as a section 501(c)(4) organization. In addition, the documents raise questions whether ATR should have reported income from some of its activities as taxable income. Finally, the e-mails raise questions as to whether insiders at ATR, including [Grover] Norquist, used ATR primarily for their own or Mr. Abramoff’s private benefit. Violations such as these could, under certain circumstances, result in penalties under current law, including excise taxes on officers of ATR, revocation of ATR’s exempt status, and even criminal tax fraud penalties.Where have we heard this before? Well, here, here, here, and here.
Thursday, October 12, 2006
How Many Times Have I Heard That Before?
From a report, Investigation of Jack Abramoff's Use of Tax-Exempt Organizations, by the Minority Staff of the Senate Finance Committee:
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The ugly side of a truly ugly meltdown.
Last week Dennis Hastert, the speaker of the House, explained the real cause of the Foley scandal. “The people who want to see this thing blow up,” he said, “are ABC News and a lot of Democratic operatives, people funded by George Soros.”
Most news reports, to the extent they mentioned Mr. Hastert’s claim at all, seemed to treat it as a momentary aberration. But it wasn’t his first outburst along these lines. Back in 2004, Mr. Hastert said: “You know, I don’t know where George Soros gets his money. I don’t know where — if it comes overseas or from drug groups or where it comes from.”
Does Mr. Hastert really believe that George Soros and his operatives, conspiring with the evil news media, are responsible for the Foley scandal? Yes, he probably does. For one thing, demonization of Mr. Soros is widespread in right-wing circles. One can only imagine what people like Mr. Hastert or Tony Blankley, the editorial page editor of The Washington Times, who once described Mr. Soros as “a Jew who figured out a way to survive the Holocaust,” say behind closed doors.
More generally, Mr. Hastert is a leading figure in a political movement that exemplifies what the historian Richard Hofstadter famously called “the paranoid style in American politics.”
The “paranoid spokesman,” wrote Hofstadter, sees things “in apocalyptic terms. ... He is always manning the barricades of civilization.” Sure enough, Dick Cheney says that “the war on terror is a battle for the future of civilization.”
According to Hofstadter, for the paranoids, “what is at stake is always a conflict between absolute good and absolute evil,” and because “the enemy is thought of as being totally evil and totally unappeasable, he must be totally eliminated.” Three days after 9/11, President Bush promised to “rid the world of evil.”
The paranoid “demand for total triumph leads to the formulation of hopelessly unrealistic goals” — instead of focusing on Al Qaeda, we’ll try to remake the Middle East and eliminate a vast “axis of evil” — “and since these goals are not even remotely attainable, failure constantly heightens the paranoid’s sense of frustration.” Iraq, anyone?
The current right-wing explanation for what went wrong in Iraq closely echoes Joseph McCarthy’s explanation for the Communist victory in China, which he said was “the product of a great conspiracy” at home. According to the right, things didn’t go wrong because the invasion was a mistake, or because Donald Rumsfeld didn’t send enough troops, or because the occupation was riddled with cronyism and corruption. No, it’s all because the good guys were stabbed in the back. Democrats, who undermined morale with their negative talk, and the liberal media, which refused to report the good news from Iraq, are responsible for the quagmire.
You might think it would be harder to claim that traitors are aiding our foreign enemies today than it was during the McCarthy era, when domestic liberals and Communist regimes could be portrayed as part of a vast left-wing conspiracy. What does the domestic enemy, which Bill O’Reilly identifies as the “secular-progressive movement,” have to do with the religious fanatics who attacked America five years ago?
But that’s easy: according to Mr. O’Reilly, “Osama bin Laden and his cohorts have got to be cheering on the S-P movement,” because “both outfits believe that the United States of America is fundamentally a bad place.”
Which brings us back to the Foley affair. The immediate response by nearly everyone in the Republican establishment — wild claims, without a shred of evidence behind them, that the whole thing is a Democratic conspiracy — may sound crazy. But that response is completely in character for a movement that from the beginning has been dominated by the paranoid style. And here’s the scary part: that movement runs our government.
[Paul Krugman, NY Times Select]
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