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Carolina Journal, Is Convincing • States Are Battling • Ex-Vietnam Radical Bilingual Blues C A R O L I N A Stirs Up the Triangle Redistricting in Court Americans as Hobbits Volume 10, Number 12 A Monthly Journal of News, December 2001 Analysis, and Opinion from JOURNAL the John Locke Foundation www.CarolinaJournal.com www.JohnLocke.org Teachers Unions Violated IRS Rules, Legal Group Says Foundation files in-depth Conservative groups say complaint against NEA & they keep independent of North Carolina group political party operations By DON CARRINGTON Associate Publisher By DON CARRINGTON RALEIGH Associate Publisher s the National Education Association RALEIGH an arm of the Democratic National onservative-leaning groups such as I Committee? Landmark Legal Founda- the Christian Coalition and the tion, a Virginia-based conservative group, C National Rifle Association fre- insists it is. quently support the ideas and same candi- By studying NEA budgets and strate- dates as the Republican Party of North Caro- gic plans, Landmark concluded that the lina, but have they established formal cam- NEA is using tax-exempt membership dues paign committees like the Democrats did in to support political activity. Even though 1996? the NEA is permitted to do so, it must “No, we have never done it, and would report the political expenditures and pay never think of doing it,” said North Caro- corporate taxes on that income. NEA has lina Republican Party Chairman Bill Cobey. not done so. “We might ask them to take an interest in an Landmark said the NEA not only had issue. We would never bring them in on a considerable involvement in the party plat- strategy session, much less a vote.” form but also had veto power over plat- What did he think of the Landmark form issues. The evidence, reviewed by The North Carolina Association of Educators is headquartered in downtown Raleigh. complaint against the NCAE? “I wasn’t Carolina Journal, is convincing. shocked. My perception of the Democrat In July, Landmark asked the Internal taxable political activities, and that the The law Party was that these groups were in control. Revenue Service to investigate the activi- groups have failed to report the activities to They were collecting union dues and using ties and tax filings of the NEA and five state the IRS. The NEA and its state affiliates are re- them for political purposes,” he said. affiliates, including the North Carolina As- Landmark reviewed documents that quired to file an IRS Form 990, which is “The dues paid by NCAE members are sociation of Educators. the Federal Election Commission obtained titled “Return of Organization Exempt From from salaries paid by taxpayers. The Demo- The request, called a “complaint,” is a during a lengthy investigation of the AFL- Income Tax.” Most nonprofits, including crat Party needs the government unions 20-page document accompanied by 25 ex- CIO and the Democratic National Commit- Landmark and the John Locke Foundation, because they are losing union membership hibits totaling hundreds of pages. The other tee. are also required to file the form. Some in the private sector,” he said. state associations were from Pennsylvania, In July 2000 a federal judge ruled the nonprofits, such as the NEA and NCAE, are The North Carolina Rifle and Pistol Nebraska, Kansas, and Minnesota. The five AFL-CIO’s coordinated activity was per- permitted to make political expenditures, Association is the state affiliate of the NRA. states were selected not because they were mitted under campaign laws, but the judge but the expenditures must be reported sepa- Has the group established a formal arrange- the worst offenders, but because documen- failed to rule on the IRS issue. rately. ment with the Republican Party here in tation was the easiest for Landmark to ob- Landmark asked the FEC for copies of The percentage of funds devoted to North Carolina? tain. all information that was collected from any political activity helps the IRS determine “We are a single-issue organization. We party. The FEC told Landmark there was a whether an organization is a labor union or cooperate with other organizations that have Rules for political activities “microfiche problem” and that there were actually a political organization falling un- similar goals, but we don’t participate in too many documents. der a different set of tax rules. broad-base coalitions,” said association Landmark alleges that all six groups After Landmark threatened a lawsuit, A political expenditure is one intended President Russ Parker. “We would never be violated IRS rules for nonprofit organiza- the FEC allowed the organization access to to influence the selection, nomination, elec- involved in a strictly partisan cooperation tions by participating in undisclosed politi- the information. On May 2, 2001, Land- tion, or appointment of anyone to federal, with other groups. We have supporters and cal activities and expenditures during the mark went to the FEC office and began state, or local public office. Expenditures detractors in every party. I thought that the 1996 election cycle. Under IRS rules, the copying more than 6,000 documents. include payments, loans, gifts, or anything NCAE did, too.” groups are required to fully and publicly Landmark has said its main focus is on of value including a promise to make an Parker said that his organization edu- disclose the extent of all political activities. the NEA. The FEC was not investigating expenditure. cates voters and that it will publish state- Unless they are separated from general the NEA, “but the NEA is the most power- Since at least 1994, the NEA tax filings ments from all candidates on issues impor- activities and conducted through a political ful, the largest, and the wealthiest union in indicate it has made no such political ex- tant to his organization. action committee, political activities are tax- America — it has 2.6 million members — penditures. To prove it, Landmark included “During Clinton’s first term the NRA able. and the AFL-CIO is a combination, sort of the NEA’s 990 tax returns as exhibits in the was audited by the IRS and they found Landmark claims the evidence it has an over-arching group of several unions,” nothing. Based on the evidence Landmark gathered indicates that the NEA and affili- said Landmark President Mark Levin in an claims to have, this should be very interest- ates spent substantial operating funds on interview on WorldNetDaily in August. Continued as “NCAE,” Page 3 ing for the NCAE,” he said. CJ Charter Schools in North Carolina The John Locke Foundation NONPROFIT ORG. Contents 200 W. Morgan St., # 200 U.S. POSTAGE Favor 58% Raleigh, NC 27601 PAID Oppose 22% RALEIGH NC Not Sure 20% Calendar 2 PERMIT NO. 1766 State Government 3 Education 6 Higher Education 10 Local Government 14 Books & the Arts 18 Opinion 20 % of N.C. Respondents in Oct. 2000 JLF Poll Parting Shot 24 Dec CJ Corrected Pages 1 4/2/02, 3:11 PM C A R O L I N A Contents JOURNAL ON THE COVER HIGHER EDUCATION •Bicycle helmet giveaways in Pittsboro; Cary may spend more taxpayer money on • Is the National Education Association an • Former campus radical turned conserva- “public” art; and other local news. Page 17 arm of the Democratic National Commit- tive David Horowitz comes to North Caro- tee? A conservative legal foundation in Vir- lina, unleashing heavy criticism on UNC- THE LEARNING CURVE Richard Wagner Editor ginia tells the IRS that it is. Page 1 CH for antiwar demonstrations. Page 10 • A review of Competition or Compulsion? NORTH CAROLINA •A former Black Panther leader spoke at The New Market Economy Versus the New Thomas Paul De Witt Duke University Nov. 15 to an apparently Social Engineering, edited by Richard Opinion Editor • State Republicans, as they had threatened, receptive crowd. Page 11 Ebeling. Page 18 sue their Democrat counterparts over al- leged unconstitutional redistricting. Page 4 • Duke offered femininity, fantasies, sexu- • A review of The New Thought Police: Inside Paul Chesser alities and dinosaurs as course of the month the Leftist Assault on Free Speech and Free Associate Editor • The state’s Environmental Management choices for CJ, but we chose Marxism. Minds by Tammy Bruce. Page 19 Commission makes a rule so it can main- Page 12 Sherri Joyner, Erik Root, tain control of isolated wetlands on private OPINION Jon Sanders property. Page 5 •Leftists are up in arms over a new report Assistant Editors that urges college campuses to teach • Editorials on the DMV’s flawed license • In approving millions in debt for prisons, America’s history and principles. Page 12 issuing policies and local campus antiwar the legislature sidestepped the constitu- protests. Page 20 Andrew Cline, Roy Cordato, tional requirement to seek voter approval • The University of North Carolina at Charles Davenport, Ian Drake, for such capital projects. Page 5 Chapel Hill may open a business school in • Editorials on subsidized home loans and Tom Fetzer, Nat Fullwood, the totalitarian country of Qatar. Page 13 the expansion of auto emissions inspection David Hartgen, Paige Holland, George Leef, Michael Lowrey, EDUCATION fees. Kathryn Parker, Marc Rotterman, LOCAL GOVERNMENT Page 21 Jack Sommer, George Stephens, •School choice programs in North Carolina John Staddon, Jeff Taylor, improve student achievement and increase •Foes of forced annexation and higher taxes • State legislators have tried to defend their Michael Walden parental involvement, according to an in- turned out their votes and successfully 2001 session as a successful defense of edu- Contributing Editors dependent study. Page 7 elected their candidates last month. cation, but John Hood says “hogwash.” Page 14 Page 21 • Lindalyn Kakedelis, former Charlotte- Hans Hurd, Rheta Burton, Bryan Mecklenburg school board member, writes • John Charles of the Cascade Policy Insti- • Richard Wagner says national security Gwyn, Nathan Lintner Editorial Interns that families deserve to have their choice tute in Oregon discusses peak-period road trumps any First Amendment rights the in schools.
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