New York Times is reporting that although Political Action Committes (PACs) can receive unlimited amounts of monies from corporations, but instead finances are flowing in the direction of tax-exempt groups, due to the lesser restrictions. Tax-exempt organizations can receive and spend enormous amounts of financial contributions without being subject to any legal obligations that would otherwise apply to PACs.
“Two years after the Supreme Court’s Citizens United decision opened the door for corporate spending on elections, relatively little money has flowed from company treasuries into super PACs, which can accept unlimited contributions but must also disclose their donors.
Instead, there is growing evidence that large corporations are trying to influence campaigns through another route: donating money to tax-exempt organizations that can spend millions of dollars without being subject to the disclosure requirements that apply to candidates, parties and PACs.
Giant insurer Aetna directed more than $3 million last year to the American Action Network, a Republican-leaning nonprofit organization that has spent millions of dollars attacking lawmakers who voted for President Barack Obama’s health care bill- even as Aetna’s president publicly voiced support for the legislation.”
