Internal Revenue Service

Mayors group sought corporate sponsors

ryanteaguebeckwith — Mon, 29 Sep 2008 21:50:11 -0400

A mayors group led by Pat McCrory sought out corporate sponsors.

The Republican Mayors and Local Officials 527 advocacy group, which the Republican gubernatorial candidate led from 2000 to 2005, advertised for corporate sponsors on its Web site.

"Wanted: Corporate sponsors," read one page.

"The RMLO hallmark of promoting local governance and partnering with other elected officials at all levels is also extended to those who share RMLO's ideals, including Corporate Sponsors," McCrory wrote in a welcome message on the group's Web site.

Annual sponsorships cost $5,000.

Based on tax forms filed with the Internal Revenue Service, the following groups contributed in 2003: the American Trucking Association and the International Council of Shopping Centers each gave $5,000 and the Bond Market Association contributed $10,000.

In 2005, the shopping centers council, the American Petroleum Institute and the Edison Electric Institute each gave $5,000 and the National Cable and Telecommunications Association gave $10,000.

Other corporate sponsors listed on the group's Web site in 2003 include: the American Chemistry Association, AT&T, Anheuser-Busch, DaimlerChrysler, Fannie Mae, Goldman Sachs, the National Rifle Association and Waste Management.

That and other pages are no longer available online, as the group appears to have let its Web site registration expire in September of 2003. The address was then briefly used by an outside company to advertise Internet porn (NSFW) and is now defunct.

They can be viewed on the Wayback Machine, an Internet archive.

RMLO's Tax Forms

ryanteaguebeckwith — Mon, 29 Sep 2008 18:37:38 -0400

RMLO's Tax Forms

Tax forms filed by a Republican mayors group led by Pat McCrory.
Download document

Mayors group overspent in '01, '02

ryanteaguebeckwith — Mon, 29 Sep 2008 18:35:01 -0400

A group of Republican mayors led by Pat McCrory overspent in 2001 and 2002.

In December of 2000, the Republican gubernatorial candidate was named president of Republican Mayors and Local Officials, an advocacy group based in Washington, D.C. He served in that capacity through 2005.

According to tax records filed with the Internal Revenue Service in the first two years of his tenure, the group spent more than it took in both years, for a total deficit of about $96,000.

In 2001, the group raised $57,500 from contributions, $2,075 from dues and $199 from interest, but spent $119,105 on payments to independent contractors and $59 on printing costs, for a deficit of $59,390.

In 2002, the group raised $20,000 from contributions, $1,525 from dues and $9 from interest, but spent $58,302 on independent contractors, for a deficit of $36,768.

The overspending depleted the group's reserves from $101,948 at the end of 2000 to $5,790 at the end of 2002.

Tax forms for 2003 and 2004 were not immediately available, but forms filed in 2005 showed the group had gotten spending under control and built its reserves up to $23,212 — still far below the amount it had when McCrory became president.

Tax deduction reduces N.C. burden

ryanteaguebeckwith — Wed, 03 Sep 2008 16:04:44 -0400

Does the Tax Foundation overstate North Carolina's tax burden?

Critics of the nonprofits rankings of state and local tax burdens note that it leaves out the amount paid by North Carolinians in federal taxes.

That's important because the Internal Revenue Service allows you to deduct your state and local taxes from your income when filing. For states such as North Carolina that rely heavily on a state income tax that means a reduced federal tax burden.

That would affect North Carolina's overall tax burden compared to other states.

"Compared to the rest of the Southeast, North Carolina is probably one of the biggest beneficiaries of the state and local tax deduction," said Gerald Prante, an economist with the Tax Foundation. "But nationwide, it's probably not that high. Almost all of the states in the Northeast benefit more."

The Tax Foundation does not account for the deduction in its rankings because of the complexity of the calculations and a lack of good data, Prante said.

The amount the deduction benefits individual taxpayers depends on how much they earn. Taxpayers who earn less and don't itemize their expenses don't benefit, but those in the middle and upper class who itemize do, as long as they aren't affected by the alternative minimum tax.

Correction: Soros and Majority Action

ryanteaguebeckwith — Thu, 14 Aug 2008 13:21:24 -0400

George Soros did not "create" Majority Action.

Under the Dome has previously described the billionaire financier as the founder of the 527 organization currently running a TV ad attacking U.S. Sen. Elizabeth Dole. That is incorrect.

The group was founded in 2005 by Democratic political consultants Mark Longabaugh and Donnie Fowler. It currently is run by Longabaugh and consultants Bill Buck and Meghan Gaffney.

Initial funding for the group came from the United Food & Commercial Workers Union and the Service Employees International Union as well as wealthy donors such as Texas philanthropist Linda Pritzker, New York apartment manager Adam Rose and Soros.

According to forms filed with the Internal Revenue Service, Soros gave $170,000 in 2006, making him the second largest donor after the SEIU, which gave $300,000.

Because of Soros' backing, Majority Action has often been lumped in with a number of other 527 organizations that he helped fund in the 2006 cycle.

However, he has not donated to the group since 2006.

Dome regrets the error.

Democratic group to air ads as well

ryanteaguebeckwith — Thu, 31 Jul 2008 08:42:34 -0400

The Democratic Governors Association is also getting in the game.

While the Republican Governors Association raising money for an independent expenditure political action committee, its Democratic counterpart is preparing to run TV advertisements here as well, the Associated Press reports.

The group confirmed late Wednesday that it is supporting the Alliance for North Carolina, a so-called 527 group formed on July 8.

According to a filing with the Internal Revenue Service, the alliance's purpose is "to communicate independently with citizens of North Carolina on issues of imoprtance" that don't expressly advocate for any candidate.

The Republican Governors Association said the Democratic group has purchased more than $300,000 of air time for a week starting Thursday in several media markets.

The alliance did not return phone calls to the AP.

New Yorkers in North Carolina

ryanteaguebeckwith — Thu, 28 Feb 2008 12:07:01 -0500

Should the Democrats be attacking New Yorkers?

Both gubernatorial candidates Beverly Perdue and Richard Moore have been attacking each other for accepting financial contributions from residents of the Big Apple.

That's been a common line of attack for North Carolina politicians since the days of Sen. Jesse Helms.

But does it work anymore?

Consider the following information. According to tax returns filed with the Internal Revenue Service, 52,012 people moved from New York to North Carolina between 2000 and 2005.

That made it the fourth largest group of state residents moving here.

(The others? Florida, 58,659; Virginia, 57,020; and South Carolina, 56,728.)

Perhaps New York is not the political bogeyman that it used to be. Then again, those people may have moved from New York for a reason...

Hat Tip: David Raynor

Report: Wright took 'sweat equity'

ryanteaguebeckwith — Wed, 13 Feb 2008 08:08:51 -0500

Rep. Thomas Wright pocketed $8,900 in corporate checks intended for a nonprofit, calling the money "sweat equity," according to papers filed Tuesday at the legislature.

On Oct. 5, the Wilmington Democrat was interviewed by SBI Special Agent Johnnie Umphlet about checks totaling $8,900 from Anheuser-Busch, AstraZeneca and AT&T to the Community's Health Foundation, which Wright ran.

Wright admitted that he received, signed and deposited the checks into his personal bank account, according to Umphlet.

"He called his reimbursement 'sweat equity,' " according to a witness list.

Other potential witnesses include an IRS employee and a Wilmington doctor. (Char-O)

Graham's $2.3 million spending

ryanteaguebeckwith — Fri, 07 Sep 2007 14:49:49 -0400

Bill Graham gave a total of $2.3 million to his political advocacy group.

According to Internal Revenue Service forms made available this week, the Salisbury attorney gave a total of $2,302,028 between December of 2005 and February of 2007 to N.C. Conservatives United, an advocacy group he started to fight the gas tax and illegal immigration.

The next largest donor was Larry T. Cloninger Jr., president of Cloninger Ford-Toyota in Salisbury, who gave a total of $100,000 in November and December of last year.

The only other donors to the group were William Frank Lee of Smithfield, who gave $6,000; Herchel Rogers Sr. of Good Neighbors New Hanover County, which gave $193; and Catherine M. Earle of Fayetteville, who gave $15.

The bulk of the money — a total of $2,292,563 — went to Fetzer Stephens, a Raleigh consulting firm, to produce ads, buy air time and give consulting services. Another $6,442 went directly to consultant Tom Fetzer, who was last paid in May, shortly before Graham announced his campaign for the Republican gubernatorial nomination.

According to the 2007 mid-year report, the group has $5,413 left.