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Today's Must Read
Special interest groups can't buy a multi-millionaire like California Gov. Arnold Schwarzenegger (R), as he has claimed since his recall election campaign in 2003. But charities can use tax-deductible donations to pick up the tab on his private jet jaunts and stays in top tier hotels, the Los Angeles Times reports.
Arnold Schwarzenegger, a millionaire many times over, bills much of his overseas travel to an obscure nonprofit group that can qualify its secret donors for full tax deductions, just as if they were giving to skid row shelters or the United Way.Whether journeying to China, Japan or last week's destinations — Austria, England and France — Schwarzenegger typically flies on top-of-the-line private jets like the plush Gulfstream models and has booked hotel suites that can run thousands of dollars a night.
What could be questionable about this set up?
By giving to the foundation, donors avoid having their identities made public, because charities are not governed by the disclosure rules that apply to campaign contributions. And they can donate unlimited amounts to the nonprofit, which is not subject to contribution ceilings the way campaign accounts are.
Most of the international trips have been "trade missions," meant to help boost the state's economy. It sounds reasonable, but critics told the Times they are little more than "junkets designed to boost his international profile."
Corporate executives sometimes get to tag along on the privately-chartered jet trips too. But that won't influence the governor, because it's all one big secret:
Foundation backers have said that because the group doesn't disclose the names of donors, Schwarzenegger would not know if his corporate travel-mates helped pay for a trip and thus could not be influenced by their donations.
Comments (55)
RandyR wrote on July 5, 2007 10:21 AM:Just another scam for another scammer. He's a Republician politician why would anyone expect him to be honest and fair. They all need their secret slush fund.
Duffy wrote on July 5, 2007 10:27 AM:Time for another recall election in California?
security code-silver
Like maybe 30 pieces of it.
chabuka wrote on July 5, 2007 10:28 AM:But...there is no money for the homeless needing shelter..no money for food stamps in homes (if they have a home and are not living in their car or the streets) with a single parent and children, while the parent works a minimum wage job...no money for health care.....but a "charity" can get tax exemption for paying for a millionaires travel and lodging...ain't Amerika great? No wonder the rest of the world hates us for our freedoms...(when will we declare BushCo, Congress, the number one threat to our way of life???_
steve wrote on July 5, 2007 10:34 AM:This gov is truly a sign of our "new" political times. Elected for no good reason with no experience, he's committed one expensive blunder after another during his on-the-job training. And now he's set his sights higher; why else all these wide ranging travels? From where I stand, all of this will continue to cost us more, we the ignorant Californian taxpayers who can't seem to get the next bozo up and running fast enough.
tbob wrote on July 5, 2007 10:40 AM:Would these donors be the same twisted rich twits who paid big money to puff his White Owl during the old Muscle Beach days? Wonder if Arnie declared that income to the IRS?
2hipmama wrote on July 5, 2007 10:53 AM:Oh thats real good...an (non) actor in office, boy have I heard that before, well I live in the state of California and he cant even say the states name.
I think the only good thing about him in office is Maria!
I would love to be the fly on the wall at that home!
He is a typical republican, lie, steal and make things up to fit your agenda!
Heads up Regan, Arine, and now fred what do they all have in common????
They belong to the same union, SAG!
Michael Torpey wrote on July 5, 2007 10:55 AM:Right on Arnold. I love you, I vote and I live in Santa Cruz California. Our Governor kicks ass all day long. California Uber Ollies!!
Mrs Panstreppon wrote on July 5, 2007 10:58 AM:The LA Times described the California State Protocol Foundation as "closely associated with the California Chamber of Commerce." I'll say it is - call the Foundation telephone number listed on its 990s and you get the Chamber of Commerce.
The California State Protocol Foundaton is a blatant scam set up to give a tax deduction for the cost of buying influence. The main mission of the Foundation is to "lessen the burden of government by providing resources for state of California to promote California in foreign countries as a place to do business."
The Foundation is not lessening the burden of the government because the government would never burden itself with cost of private jets and first class hotel suites.
A few expenditures for this so-called charity as listed on the 990s:
Gifts for foreign dignitaries:
2004 - $203,578
2005 - $136,282
2005 BBQ for the press - $24,090
2005 Logistics - $135,088
Revenue by year:
Billy Pilgrim wrote on July 5, 2007 11:25 AM:2003 - $114K
2004 - $1.0 million
2005 - $1.9 million
The Foundatoin 990s are available online at the Foundation Center's 990 Finder - link below.
This is news? What else would any sane person expect?
As a non-Californian, I'm trying really hard to care.
Samsara wrote on July 5, 2007 11:57 AM:A clip from "Pumping Iron" was on the TV yesterday. It was one where Arnold is bullying a young Lou Ferrigno, undermining his confidence, all so he can ensure another steroid aided Mr. Universe title. How do you expect him to act now that he is elected, like a public servant. Ha, he is an opportunist and the only bright spot is that the Constitution prevents him from ever running for President.
doug r wrote on July 5, 2007 12:42 PM:How about a ballot measure prohibiting charities paying for government junkets. Maybe you could repeal Prop 13 while you are at it?
None wrote on July 5, 2007 12:53 PM:Funny, this wasn't on the news along with Edwards haircut and Al Gore's son and Viagra Villaiargosa's affair.
foggylady wrote on July 5, 2007 12:58 PM:I lived in SF for some time, before being able to flee to a sane state, and got a too close up view of Schwarzenegger. Naked ambition and overweening ego., very arrogant. ... He is quite serious about being President, and is quite capable of seeking Repub. help in changing the law about qualifications., which is a scheme that perhaps looked more plausible before 2006 elections.
FRANK wrote on July 5, 2007 1:17 PM:and Oh, btw...he is being charged currently with politicizing the state environmental agency.
Ca. has a nasty habit of producing some truly nefarious National politicians.
ARNOLD WILL NEVER BE PRESIDENT,THAT LAW WILL NEVER BE CHANGED.
Davis13 wrote on July 5, 2007 1:35 PM:Good.
davis13 wrote on July 5, 2007 1:37 PM:good. we don't need an Austrian running the country.
dee illuminati wrote on July 5, 2007 1:59 PM:It is sad when this is considered Muck considering that Arnold did more for cafe standards and energy policy as a Governor than the entire beltway could muster.
When you consider disclosure for contributions, and how the beltway operates??
Why is this muck when the Democratic majority can't get finance reform to meet the stench test??
Really... Arnold is the least of America's challenges and if you look at the problems and challenges we face, definetly in the solutions ledger.
Maybe Arnold can do damn well what he thinks is actually right as he isn't running for a higher office.
aeskylos wrote on July 5, 2007 2:00 PM:Get rid of Schwarzenneger, California. Just another greedy politician.
molly wrote on July 5, 2007 2:12 PM:There are tests going on in California now proving their voting machines are hackable. Ahnald was selected to provide cover for Enron blackout scandals that hit that sad state. The tax payers paid a fortune for blatant greedy schemes. Read bradblog for daily news on our poor election process. Odd, how the thrown votes all go to republicans.
lukcy9 wrote on July 5, 2007 2:40 PM:One should not expect kindness, empathy, fairness, even-handedness, non-gangsterism for the wealthy, or seperation from big-money influences from republicans. I blame only the liberals who should know better that voted for him. True, he has helped cafe standards, etc. Kicking and screaming, to get re-elected. But I guess we don't care, as long as he's 'kicking ass' ? eh Michael Torpey? Why don't you move to so-cal with rest of your "California Uber Facistas"?
lucky9 wrote on July 5, 2007 2:46 PM:One should never expect kindness, empathy, fairness, non-gangsterism for the wealthy, or seperation from big-money influence from a repulican. I don't blame them, only the liberals who should no better that voted for him. Sure, he has improved cafe stds, etc as of late, but only kicking and screaming - to get re-elected. But I guess people don't care as long as he's 'kicking ass' eh Mr. Torpey? Why don't you move to so-cal with the rest of your California Uber Facistas'?
T Barr wrote on July 5, 2007 3:30 PM:Wow! Where have I been?!
So, let me get this straight:
-"donate" money to your favorite politician via a "charity" (any amount you want because no records are kept)
-receive a nice tax break (any amount you want because your privacy is sacred)
-the politician then can use the "donation" for luxury travel, entertainment and expensive suites
My, oh my! So that's how they do it! Probably has been going on for eons. I just didn't have access to the Internets or TPMmuckraker!
Wow! Thanks for the info!
T Barr wrote on July 5, 2007 3:30 PM:Wow! Where have I been?!
So, let me get this straight:
-"donate" money to your favorite politician via a "charity" (any amount you want because no records are kept)
-receive a nice tax break (any amount you want because your privacy is sacred)
-the politician then can use the "donation" for luxury travel, entertainment and expensive suites
My, oh my! So that's how they do it! Probably has been going on for eons. I just didn't have access to the Internets or TPMmuckraker!
Wow! Thanks for the info!
T Barr wrote on July 5, 2007 3:35 PM:Wow! Where have I been?!
So, let me get this straight:
-"donate" money to your favorite politician via a "charity" (any amount you want because no records are kept)
-receive a nice tax break (any amount you want because your privacy is sacred)
-the politician then can use the "donation" for luxury travel, entertainment and expensive suites
My, oh my! So that's how they do it! Probably has been going on for eons. I just didn't have access to the Internets or TPMmuckraker!
Wow! Thanks for the info!
Michael Torpey wrote on July 5, 2007 6:49 PM:Arnold will be PRESIDENT!!!!! "Lukcy9" you can be Secretary of TYPOS and repeat postings.
Mark in CA wrote on July 5, 2007 7:30 PM:Gee, can I set up one of these "charities" to pay for my expenses? I can make the donations myself, get the tax deduction, and the charity picks up all my bills -- mortgage, car, T&E, gifts, meals, expensive toys, vacations? Am I missing something?
Warren Felger wrote on July 6, 2007 1:24 PM:Looks like the Governor borrowed a page from the Edwards' nonprofit tax scam playbook.
westcoaster wrote on July 6, 2007 2:46 PM:Republicans want you believe that vast wealth insulates their candidates from graft and corruption that are only Democratic crimes. Just one of the many fairy tales in their Party media book.
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