TAX-EXEMPT POLITICS SHOWS FOLLY OF REFORM

Loopholes in, around and under the various regimes of campaign-finance restrictions are emerging once again. This time the action is among tax-exempt organizations.

Tax-exempt groups have spent more than $130 million trying to sway the fall elections, according to an Associated Press survey. These groups have taken advantage of a special Internal Revenue Service classification for political groups that has existed for years but gained popularity only in the last few years. Congress responded this summer by requiring the groups to disclose their donations and expenses, which is all to the good.

This trend has created a potent new class of political groups that don't have to pay taxes on donations they collect or abide by post-Watergate limits on political fundraising or spending. Unlike charities, however, contributors can't take tax deductions.

Mainly, this latest development shows the folly of trying to limit money in political campaigns. Those funds are the very currency of communicating facts and fair argument, the very stuff of democracy.

Let's remove limits and go with full disclosure, the better to let people hear lots of speech, and make up their own minds.