On the Radar
Shielding Political Donors
A federal judge in Montana has overturned an Internal Revenue Service rule that would have allowed certain political nonprofits, known as “social-welfare” organizations, to keep their donor lists hidden.
Last year, the IRS had reversed a longstanding rule that required groups like the National Rifle Association, AARP, and NRA to disclose the identity of large donors. New Jersey and Montana sued.
U.S. federal Judge Brian Morris ruled that the IRS did not follow proper procedure in writing the rule and needs to allow public comments before making changes to the tax code.
Montana Gov. Steve Bullock, a Democratic presidential hopeful, said in June that elected officials were “like NASCAR, sponsored by different companies. At least voters oughta know who’s doing the buying. Literally now, a Russian could give to the NRA, and not even the IRS would know.”
IRS officials said Wednesday they do not comment on litigation.
Should political donors be allowed to stay anonymous?
Sequestration's Final Anniversary?
On August 2, 2011, President Barack Obama signed the Budget Control Act of 2011 into law, which put in place spending caps known as "sequestration" to force Congress into agreeing to reduce budget deficits.
The sequester’s eighth anniversary comes one day after the Senate sent a bill to President Trump’s desk that will effectively repeal the budget caps for the last two fiscal years of their existence and lift the debt limit when it’s signed into law.
After considering several ways of addressing the debt crisis in the late 2000s, a deal was reached on July 31, 2011, to employ sequestration as a means of reducing deficits.
As the years wore on, the $1.2 trillion in reduced spending caps proved politically unpopular for both sides with Republicans arguing it led to excessively restrained defense spending and Democrats unhappy with lower domestic spending. That created bipartisan support for nudging discretionary spending upwards when Congress considered debt limit and budget cap agreements several times in recent years under the confines of sequestration.
Assuming the Bipartisan Budget Act of 2019 is signed into law, it will mark the end of sequestration’s budget caps. At present, it’s unclear whether Congress will muster the will to reimpose spending caps of some sort with the CBO projecting the national debt to grow by another $11.6 trillion over the next decade under its baseline estimate.
How do you feel about the sequestration spending caps on their anniversary?
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