Skip to comments.Albany Strategy Lets Rich Evade Donation Limits
Posted on 08/05/2006 12:45:15 AM PDT by neverdem
ALBANY, Aug. 3 As a candidate for governor of New York, Eliot Spitzer is barred from taking more than $50,100 from any single donor.
But that has not stopped wealthy donors from legally circumventing these state contribution limits to shower six-figure donations on the Spitzer campaign. Their technique? Using limited liability corporations as a vehicle to give well above the maximum the state allows.
In fact, this years statewide political campaigns are awash with donations from L.L.C.s, which are business entities that can be set up for as little as a couple of hundred dollars and provide special tax benefits and limits on financial liability. Six of the eight major-party candidates for governor or attorney general have taken donations from individuals who have contributed the maximum and then donated further through L.L.C.s.
The donations are legal in New York State races, but restrictions have been put on them at the federal level and in New York City races. Election watchdog groups say the donations violate the spirit of campaign finance laws that seek to limit the influence of wealthy donors.
Its yet another loophole that makes our already weak campaign finance laws meaningless, said Rachel Leon, executive director of Common Cause New York, which has prepared an analysis of these donations and shared its findings with The New York Times. We have the highest contribution limits of any state that has limits, but even those laws you can get around with these loopholes.
Several donors to Mr. Spitzer, the leading candidate for governor, have gone above the $50,100 limit on personal donations by contributing through L.L.C.s that often have the same address as the donor. A hedge fund manager, Barry Rosenstein, and his wife, Lizanne, have contributed $120,000 to Mr. Spitzer, while Howard Markel, a Manhattan lawyer, and his...
(Excerpt) Read more at nytimes.com ...
FReepmail me if you want on or off my New York ping list.
"Spitzer"---NY deserves a governor with that name, after putting Hillary in there!
Now if only Hillary would change her last name to Likzer. :)
No wonder Spitzer has so much money for tv ads.
In short, campaign finance reform has managed to completely obscure campaign finances.
What a surprise. Not.
If they can skirt the law with LLCs, then the Rico Act can be skirted to put them in jail.
NYC put her in there.... NY is just getting dragged along for the ride... :-(
Thanks for the ping!
Business owners should just take the tax break and move to Nevada. And they could also finally have a GOP Senator or Congressman for the first time in their life who is pro-life and anti-tax
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.