loading...
The word both sides are using to describe House and Senate approval this week of legislation to close the so-called 527 loophole in federal campaign-finance law is “small.” Victorious proponents of this much-needed reform say it is but a small step. Opponents — the few left standing —…
Sign in or Subscribe to view this content.

The word both sides are using to describe House and Senate approval this week of legislation to close the so-called 527 loophole in federal campaign-finance law is “small.” Victorious proponents of this much-needed reform say it is but a small step. Opponents — the few left standing — say it is merely a small detour on the road to other loopholes.

Begging to differ with the entire United States Congress, but this is not small. The first significant reform in nearly a quarter century, an overwhelming margin in both chambers, a clear signal that disclosure trumps secrecy, proof that Republicans of conscience can defy leadership and live to tell the tale — add it up, it’s big.

They’re called 527 groups because that’s the section of the tax code where their hideout is — or was. A largely unnoticed provision of the post-Watergate reforms of 1975, Section 527 allowed organizations to engage in political activities without disclosing the names of their donors or the amount of their spending. The section was little used until recently, when the IRS and the Federal Elections Commission began clamping down on nonprofit groups seen as operating too politically. Suddenly, Section 527 became the loophole of choice.

The choice across the political spectrum — Republicans for Clean Air raised $2.5 million from who knows where to help Gov. George Bush defeat Sen. John McCain in this winter’s primaries, the Sierra Club has 8 million anonymous dollars stashed to elect its candidates. One thing groups using Section 527 shared was a stated commitment to bury as much money as possible in this loophole.

The loophole was plugged by a vote of 385 to 39 in the House, followed by a 92 to 6 romp in the Senate. Those numbers, however, do not accurately describe the long, hard struggle to get reform of any kind up for a vote and Mainers can be proud of to role their delegation played in that struggle. Democratic Reps. Tom Allen and John Baldacci have been strong backers of comprehensive reform; Republican Sens. Olympia Snowe and Susan Collins were among the first in their party to place the public interest ahead of the wishes of GOP leadership.

This is a stunning defeat for that leadership. The veiled threats, the bluster, the hints of reprisal were brushed aside. The hypocrisy of advocating for disclosure until disclosure came up for a vote was exposed. Perhaps best of all, the ethical bankruptcy of congressional opponents of campaign-finance reform is fully revealed.

There can be no better example of that than Sen. Mitch McConnell of Kentucky, head of the senate GOP campaign committee. Long an opponent of reform of any kind on the basis of what he views as principle, Sen. McConnell told his colleagues in the closing moments of the Section 527 debate to go ahead and vote for reform, even if it went against their principles, if they thought it would help them get re-elected. It’s a small statement that must not be forgotten as campaign-finance reform moves on to bigger things.


Have feedback? Want to know more? Send us ideas for follow-up stories.

comments for this post are closed

By continuing to use this site, you give your consent to our use of cookies for analytics, personalization and ads. Learn more.