SBAC Using Its 501(c)(4) Status to Hide Donors While Engaging in 527 Advocacy
Sacramento â€“ The California Democratic Party today announced it will file an official complaint with the Internal Revenue Service against a group supporting Republican Meg Whitmanâ€™s run for governor by waging dishonest attack ads against Jerry Brown. The complaint will allege that the â€œSmall Business Action Committeeâ€ is spending hundreds of thousands more on political activities than is permitted under its 501(c)(4) status, and that as a possible consequence, SBAC may have to disclose the identity of its donors who are currently anonymous.
â€œIf Meg Whitman and her Wall Street cronies want to fund a dishonest and deceitful ad thatâ€™s certainly their business,â€ said John Burton, Chairman of the California Democratic Party. â€œBut they do not get to abuse the tax system to do so. People have a right to know whoâ€™s behind these sleazy ads.â€
The â€œSmall Business Action Committeeâ€ endorsed Meg Whitman just two days after receiving a $10,000 check from her campaign.
SBACâ€™s treasurer, James Lacy a resident of Dana Point, is the co-founder of the National Campaign Fund, which runs the website ExposeObama.com, a site that devotes significant space to â€œnewsâ€ and commentary questioning the validity of President Obamaâ€™s birth certificate and citizenship by relying on the thoroughly discredited claim that the President was not born in the United States.