GOPAC sleaze: Taxpayer subsidies for his partisan campaign course.
Newt in his poltical career was the king of using tax-payer subsidized donations for his personal and political purposes. He stooped so low as to hijack not one but two charities for poor inner city kids and use their donations for his personal goals.
GOPAC, Newt's longtime political action committee, was the centerpiece of a complex network of non-profit, and mostly tax exempt organizations that Newt has used to support himself and other conservative candidates. In an act of incredible hypocrisy, this crusader against taxes obtained taxpayer subsidies for his personal and political goals, by misusuing these tax-exempt groups.
For example, one GOPAC document said that its goal for the 1990s was "to both create and disseminate the doctrine of a majority Republican party." In another GOPAC document, titled "Key Factors in a House GOP Majority," Gingrich wrote "It is more powerful and more effective to develop a reform movement parallel to the official Republican party", instead of using the party structure, because it would get more attention and be more credible. Shortly thereafter, GOPAC paid for a television program promoting a "grassroots" movement to reform government; publicly they claimed it was nonpartisan, but private internal documents made its partisan goals clear.
After it got expensive, Gingrich transferred the program to the "Abraham Lincoln Opportunity Foundation," a tax-exempt group controlled by a GOPAC official named Bo Callaway. It had been set up years earlier to help inner city kids, which is why it was tax exempt. The group spent $260,000 on the television program in 1990. That same year, Newt started another tax-exempt group that paid poor students for reading books. He bragged of this in many a political speech. But after the first two years, most of this foundation's money went to Mel Steely, a former Gingrich aide who is now Newt's official biographer.
The best known effort was a college course (titled "Renewing American Civilization") at a third-rate college that Gingrich nakedly used to recruit and organize conservative candidates, and to feed them his carefully constructed ideology and political slogans.
Of course, using tax-exempt educational or charitable donations for partisan purposes is illegal, and several ethics complaints were filed against Gingrich. He agreed to pay a $300,000 fine for misleading the committee during the investigation, and in the process dodged conviction on the actual charges through a combination of finessing some legal definitions, sheer self-confidence and raw political power (as Speaker of the House at the time of the complaints, he appointed the ethics committee. Furthermore, GOPAC had one ethics committee member on its roster last session, and gave money to another.)
The Ethics Committee dropped its final charges against Gingrich not long before he resigned as speaker, despite finding that Gingrich had in fact violated one rule by repeatedly using a political consultant paid by GOPAC to develop the Republican political agenda, because there was no evidence he was continuing to do so.
The IRS also started an investigation of one group, the Progress and Freedom Foundation, for violating its tax-exempt status by donating to Gingrich's college course. In the investigation, the special counsel found that these activities were "substantially motivated by partisan political goals." The IRS eventually overruled him, and found that the course "was educational and never favored or opposed a candidate for public office.'' It said the foundation ``did not intervene on behalf of candidates of the Republican Party merely by promoting'' themes in the course. This extremely narrow reading of the law basically said "so what if he used the course to recruit, organize and groom candidates; as long as they didn't say 'Vote for Jones', it wasn't partisan." Despite what Gingrich fans argue, this hardly proves his innocence. The IRS has chickened out before in political cases, notably letting the Church of Scientology completely off the hook in its investigation of that group
