by Seth Michaels, Feb 26, 2009
Last year, major opponents of the Employee Free Choice Act took part in a
conference call, organized by a giant banking institution that was set to receive taxpayer bailout funds, in which they insisted that CEOs and industry contribute to anti-Employee Free Choice Act candidates for public office. That violates the law, says a complaint filed this morning by the AFL-CIO and Change to Win.
The complaint against the Center for Union Facts and the Marcus Foundation alleges that their leaders, Richard Berman and Bernie Marcus, took part in the call organized by Bank of America last year. Marcus and Berman were organizing corporate donors to fight the Employee Free Choice Act and solicited donations to Berman’s organization and to specific candidates hoping to influence the election and prevent passage of the Employee Free Choice Act, a bill that would protect workers’ freedom to form unions and bargain.
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The complaint states in part:
…principals of the Center and the Foundation, while acting on their behalf, participated in a teleconference during which they explicitly endorsed Republican Party candidates for the United States Senate and solicited contributions to support their election, including, specifically and repeatedly, to the Center itself as a means to elect them. These activities warrant revocation of these charities’ tax-exempt status and the imposition of appropriate taxes and penalties.
The teleconference consisted a substantial part of a discussion about how to support the Republican Party and specific Republican candidates for the United States Senate in 2008 who opposed the Employee Free Choice Act.
The tax status of the center and the foundation is dependent upon them not taking part in political campaigns. According to U.S. tax law, this exemption is:
…lost by participation in any political campaign on behalf of any candidate for public office. It need not form a substantial part of the organization’s activities.
The complaint notes that these organizations are breaking the law if they use funds, facilities, staff and other resources as part of an effort to influence elections.
Marcus and Berman have gone all out to solicit big-dollar donations from CEOs and lobbyists to mislead elected leaders, the press and the public and to prevent workers from bargaining for better health care, pensions and fair wages. It’s time to hold them accountable.
More At Link:
http://blog.aflcio.org/2009/02/26/did-opponents-of-employee-free-choice-break-the-law/The author of the article is the newly appointed Deputy Secretary of Labor.