HUGE Win! New York Closes LLC Loophole
Since our inception, Take Back Our Republic has identified New York’s LLC loophole as one of the more egregious and non-sensical in the campaign finance arena. Now, the loophole is awaiting the governor’s signature and poised to be no more.
Thanks to overwhelming support in the state legislature- inspired by citizens like Take Back Our Republic Regional Coordinator Paul Lichstein(pictured below)- A776, aimed at treating LLCs like corporations for campaign finance purposes, is on the verge of becoming law. Lichstein had the following to say about the closing of the LLC Loophole.
“Almost all of the donors who have used this loophole are transactional donors who want something from the state. These donors have been like a lamprey that has latched on to government slowly diverting resources for their own gain. Eliminating the LLC loophole is a critical step towards getting a leaner government more responsive to the needs of ordinary citizens. Marcus Molinaro, the Republican candidate for Governor in NY came out strongly in favor of this reform. There is no doubt in my mind that his position pushed Cuomo to make this reform a reality. Molinaro showed that Republicans can effectively advocate for reforming the corrupt campaign finance system”
Because of this fix, wealthy individuals will no longer be able to have an outsized influence by giving massive repeated contributions through their LLC. Previously, the loophole treated LLCs as individuals, allowing for the owner to essentially make large contributions through multiple LLCs not subject to an individual’s aggregate limits.
For more information, see: https://www.jdsupra.com/legalnews/new-york-state-bill-to-close-llc-26027/.
This is a major win for our organization. Activists partnering with us were instrumental in keeping this issue front and center and, ultimately ensuring its passage. Additionally, the policy here is the type of common-sense approach we have advocated- allowing individuals to maintain their ability to give, not viewing money itself as the problem, and simply taking the approach of trying to balance the scales.
What do you think? Join the conversation at: https://www.facebook.com/takebackorg/.