Secret campaign money

[Commentary] The gusher of secret money pouring into the coming election is alarming. It should be plugged for future campaigns -- and could be, with the switch of a Senate vote or two. But the rhetoric about this development, from President Obama on down, is irresponsibly alarmist.

And the popular understanding of how this mess arose -- generated by the president and other Democrats and abetted in part by media reports -- is ill-informed. The fundamental problem is not the Supreme Court's ruling in Citizens United, although that reflected wrongheaded judicial activism. The real problem lies in a tax code that permits too much political activity to take place in secrecy. Nonprofit advocacy groups, known as 501(c)(4)s, are permitted to engage in political advocacy as long as that is not their primary purpose. Meanwhile, these groups do not have to reveal the identities of their donors. IRS regulations bar such organizations from "direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office," but as a practical matter, these limits have not made much difference. One such Republican-leaning group, American Crossroads GPS, has touted its ability to keep donor names confidential even as it runs ads in key races. Similarly, trade associations such as the Chamber of Commerce, organized under section 501(c)(6) of the tax code, are not required to disclose donors and are permitted even greater leeway to engage in political activity.

The Disclose Act would require that these groups reveal the funders of campaign ads; it would do so without intruding on the privacy of contributors to other efforts unrelated to campaigns. The 2010 flood of secret money can't be turned off. It's essential to act in time for 2012.