But not all businesses are obeying state laws, the study says. Some firms are even taking a tax deduction on their political spending, effectively getting a public subsidy for their self-serving advocacy. For example, Farmers for Fairness paid for its ads attacking state Rep. Cindy Watson with dues from corporate hog producers that are tax-deductible to the businesses.
Taxpayers pick up the rest of the bill.
Other businesses are taking tax deductions on the money they spend to influence the outcome of ballot questions, such as whether to invest public funds in building highways, sports arenas, or schools. Some are clearly violating the law. Rather than abandon the ban on corporate donations, we need a tougher law to stop for-profit companies from using their economic muscle to overwhelm the political arena. In April, federal District Court Judge Terrence Boyle ruled that the current law is unconstitutional because it also bars non-profit corporations from conducting advocacy campaigns. The law is back in force while the state appeals Boyle's ruling to the Fourth Circuit Court of Appeals in Richmond.