THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Sunday, July 14, 1996                 TAG: 9607120024
SECTION: COMMENTARY              PAGE: J4   EDITION: FINAL 
TYPE: Editorial 
                                            LENGTH:   46 lines

POLITICAL ACTIVISTS AS TAX DODGERS CHANGE THE LAW OR PAY UP

Is the Christian Coalition violating tax laws? Is the AARP? The question is far from academic. Every dollar of tax exemption that's granted to such organizations has to be made up out of the pockets of other taxpayers.

That's not to say there should be no exemptions granted. But some are regularly abused. Others are inconsistently applied. The Christian Coalition claims an exemption permitted to groups that promote the public welfare.

But the law forbids an exemption to groups that engage in substantial political activity. So the question becomes: On which side of the fence do the activities of groups like the Christian Coalition fall?

They naturally claim to be performing only an educational function. They deny they engage in politicking, but that claim looks spurious on its face.

The famous voter guides of the Christian Coalition clearly play favorites. A story in The Pilot on Thursday showed coalition director Ralph Reed crowing about the group's success in targeting Virginia Beach incumbents like former Sen. Moody E. Stallings Jr. Stallings for defeat and getting out the vote for challengers like Sen. Ken Stolle.

There's nothing wrong with a group like the Christian Coalition lobbying for legislation, picking candidates to support, electioneering through the use of fund raising, mailing lists and phone banks. But there is something wrong with claiming millions in tax exemptions while engaging in activities that cross the line.

It's a bipartisan problem. Earlier this year Sen. Alan Simpson, R-Wyo., took on the AARP, which he contends is essentially a pro-Democratic lobbying outfit. Now the Democratic Party argues to the Federal Election Commission that the Christian Coalition is essentially a pro-Republican political-action committee that should be forced to register as such and disclose its donors.

The IRS has been slow to rule. Could it be that the immense political clout of such organizations protects them from being subjected to the same taxation as lesser lobbying and partisan groups?

If so, that's wrong. If the law that grants exemptions and defines their boundaries needs to be tightened or liberalized, Congress can act. But until the law is changed, it ought to be applied consistently.

In many cases, including that of the Christian Coalition, exemptions are being claimed by organizations that engage in activities that appear to be off-limits. Individuals are expected to comply with the tax laws. Organizations, no matter how powerful, shouldn't be treated any differently. by CNB