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Montana's Democratic governor takes Trump on over dark money rule

Ten Thousan Marbles

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Feb 6, 2014
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https://www.nytimes.com/2018/07/24/us/politics/steve-bullock-montana-irs.html

https://www.dailykos.com/stories/20...-governor-takes-Trump-on-over-dark-money-rule


Gov. Steve Bullock (D-MT) is suing the Trump administration to prevent it from allowing dark money political groups to keep their donor secret in with (within?) the Internal Revenue Service. The new rule from the Treasury would let the dark money "non-profits" like all the various Koch groups shield the identity of contributors who give more than $5,000. Those names were already protected, the IRS can't release them publicly, but that wasn't enough for the Trumpsters.

Bullock is suing, saying that the Trump administration didn't follow proper government procedure in eliminating the disclosure requirements, and is asking the court to void the new policy. "The goal of the litigation," Bullock said in an interview, "is to make sure that dark money and foreign money isn't flowing into our elections unchecked." He accused the Trump administration of "playing fast and loose with Treasury procedures."

Montana argues that the Trump administration failed to follow the Administrative Procedure Act, accusing the Treasury of "evading important regulatory requirements, like the mandate to seek public comment before rewriting government rules, and of rewriting policy under the guise of adjusting what the I.R.S. termed a 'revenue procedure.'" There's some precedent here, with advocates in Kentucky suing the administration over the work requirements it approved for the state's Medicaid program. They argued successfully that the administration hadn't followed procedure, with the judge in that case ruling that HHS Secretary Alex Azar "never adequately considered whether Kentucky HEALTH would in fact help the state furnish medical assistance to its citizens, a central objective of Medicaid. … This signal omission renders his determination arbitrary and capricious."

Bullock centers his challenge in the fact that Montana uses that information from the IRS to administer tax policy for nonprofits at the state level. He also highlighted the state's history in clean elections in justifying the suit. "Not only do we have a long history of fighting against dark money and corporate money in our elections, but it could also substantially impact our state treasuries—what Montana and other states collect."

He also invited other states to join him, and promised to keep up the fight. "Were this lawsuit to fail, then certainly the state of Montana—and other states—would have to take other steps to protect the integrity of its tax base."
 
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