DNC and Dems' Private Club Delinquent on Taxes 16 Times in 7 Years (PJM Exclusive)
As for the specific charges of tax delinquency, Mastroianni said:
I’ve been president since March. I’m not familiar with the charges at all. I think you’re wrong. Like all government records, they are prone to errors.
I met with D.C. government officials at the Office of Tax and Revenue. OTR officials personally reviewed the tax documents and confirmed they are accurate.
Pete Sepp, executive vice president of the National Taxpayers Union, told Pajamas Media he’s surprised that a Democratic organization should be tardy on their tax payments:
It’s interesting to note that the DNC and the Democratic Party often champion the cause for state and local governments by saying they are starved for cash.
In part, the club’s difficulties can be traced to Terry McAuliffe, former Democratic Party chairman. For years the club was the property of the Democratic National Committee. But in 2002, in a complicated deal, McAuliffe “sold” the property to the club for $4.1 million and it became a tax exempt 401(c)7 entity. It was designated a “private club” under IRS guidelines, which allowed it to enjoy many tax benefits. The next year, McAuliffe and the Bank of America imposed a lien on the property.
The property, like the rest of the housing market, has declined in value. It’s assessed at $3.2 million.
Mr. Mastroianni disassociated his organization from the DNC, saying that the club had no connection to the Democratic Party:
We are a non-profit organization and are a legally separate organization.
The club charges an annual membership fee of $1,200 for the privilege of dining at the restaurant, plus the cost of the consumption of food and liquor. Democratic members of Congress, governors, and political insiders are frequently seen at the club, which is a half a block from the Democratic National Committee offices.
Grover Norquist, president of the conservative Americans for Tax Reform, told Pajamas Media:
Barack Obama’s Democratic Party is the party of Leona Helmsley. Taxes are for little people. The Secretary of the Treasury, the highest ranking government official in charge of taxes, didn’t pay his own taxes and President Obama didn’t believe that was a problem.
They don’t see themselves bound by the law any more than Louis the Fourteenth did. They are above the law, they are above taxes. Taxes and laws are for little people.
NTU's Sepp says the disclosure doesn’t surprise him:
There are plenty of instances in Washington, D.C., where a member of Congress or an organization involved in politics says one thing and does another. This seems to be one of those cases.
The DNC did not return any of PJM's calls requesting comment for this article.