Stealth politics

Boston Globe editorial, 6/22/2000

noxious new campaign finance loophole deserves to be closed up fast, with the support of both Vice President Al Gore and Texas Governor George W. Bush. But Congress often serves itself first.

At issue are so-called ''stealth PACs'' operating under Section 527 of the US Tax Code. Most political organizations that file under Section 527, including all regular political action committees, also file with the Federal Election Commission, which requires that donors be disclosed.

But some groups claim that, while they are admittedly political, they do not expressly advocate the election or defeat of specific candidates and therefore don't have to register with the FEC or reveal their funding sources.

This loophole was pried open in 1996 and grew larger in 1998. This year it has already become a gusher for many millions of dollars. Groups ranging from the far left to the far right are using it, with House Republican Whip Tom DeLay of Texas leading the way.

As with the ''soft money'' spent by the national parties, these Section 527 groups argue that the advertising campaigns they run aren't designed to influence elections. Often, this is a blatant sham. In the last six weeks of the 1996 campaign, some $550,000 was poured into three Kansas congressional districts on behalf of Republican candidates, each of whom won by 5 percent of the vote or less. Earlier this year, a mystery group linked to two Texas brothers spent $2.5 million blasting Senator John McCain in key primary states but said it didn't have to name its backers because it is a Section 527 political organization.

McCain lost the nomination but won a surprise victory last month with a Senate vote to close the Section 527 loophole. Last week, however, House Republicans rejected all proposals that might garner bipartisan support. This is the reverse of what has happened with the broader soft-money ban, which has passed the House but died in the Senate for the last two years.

Big money is hurting American democracy badly. Secret big money is poison. If Congress has any concern for the voters, it will close the Section 527 stealth PAC loophole promptly.