November 13, 1997
Tax-Exempt 'Shells' and Campaign-Finance Reform
The recently suspended Senate probe into the financing of political campaigns showed how tax-exempt organizations were used as cogs in the money machine that fueled the partisan political wars of 1996. Although the committee's chairman, Fred Thompson of Tennessee, cut short the proceedings, it is clear that both major political parties used tax-exempt organizations to channel money to particular candidates, thereby circumventing federal election law.
Such
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