Friday, April 1, 2011

AARP Tax Exemption Report at Center of Contentious Capitol Hill Hearing

You know, way back in November 2009, I wrote a brief post on the aarp and their support of obamacare. Their main goal in this was to kill Medicare Advantage, a good selling product that was in direct competition with one they were selling. Their product, or the product they were/are pimping was more expensive and provided less coverage.

Correct me if I am wrong, but isn't it against the law for a church to pimp a political candidate? If I'm not mistaken, they can lose their tax exempt status over such actions. It would seem that the backing of a political aganda or candidate should result in the loss of tax exempt status for any 501c4 organization. The Republicans should pursue this fully.

I have told the aarp my point of view on this and several other issues on more than one occasion. It's funny, I never hear back from them. I'm willing to bet though, that when I near retirement age they will want to talk to me. Fat chance...

By Doug McKelway - FoxNews

A Republican-authored report on alleged financial irregularities within AARP has met with deep resistance among Democratic lawmakers and AARP senior executives.

The report, entitled "Behind the Veil: The AARP America Doesn't Know," alleges that the AARP violated its tax exempt status by, in effect, selling health insurance policies and by actively lobbying for the massive health care law passed by Congress and signed by President Obama last year.

Both those activities, Republicans say, violate the spirit of 501c4 tax-exempt organizations, which are supposed to "promote the common good and social welfare of a community of people."

Confronted with the report during an oversight hearing Friday held by the House Ways and Means Committee, senior AARP managers recoiled at its accusations.

"We do not sell insurance," Barry Rand, chief executive officer of AARP told the committee. He described AARP's insurance related revenues as "royalties."

In such an arrangement, AARP receives a fee from private insurers in exchange for tweaking their policies, accepting an AARP "brand" and selling those polices to AARP members.

In 2009, AARP revenues from such royalties amounted to two and a half times the amount the association received from member dues.

Read the rest at the link above...