It is plainly illegal for foreigners to contribute to American political campaigns. But reform groups are warning that the ban would be gravely undermined by a little-noticed bill advanced Thursday by Republicans on the House Ways and Means Committee.
It would alter the current tax code provision that, while permitting the identity of donors to 501(c) “social welfare” groups to be kept firmly secret from the public, requires that the donors be privately identified to Internal Revenue Service officials responsible for enforcing the law. Politically oriented groups claiming dubious exemptions as “social welfare” nonprofits have proliferated in recent elections, allowing donors — including publicity-shy campaign backers — to work from the shadows.