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The Aftermath: With Bopp's Help, Kelty Cuts Off His Nose To Spite His Face

TugofwarThe Fort Wayne Journal Gazette's Tracy Warner summarizes the 2-1 partisan vote in favor of mayoral hopeful Matt Kelty's slippery campaign finances:

"So, will the issue go away?

"Though the board voted not to forward a report to Allen County Prosecutor Karen Richards, anyone can report a possible crime to the prosecutor, who has wide discretion to investigate such a report. But as a public supporter of Nelson Peters, Kelty's opponent in the May GOP primary, Richards should at some point hand over any investigation to a special prosecutor. The case would be expensive, time consuming, politically volatile – all on a matter of law that is untested.

"The legality of a candidate borrowing money from anyone and then loaning it to his own campaign without disclosing its true source is an issue that should indeed be addressed. But the Election Board decision probably means the Kelty campaign reports will not trigger such a legal review, and Kelty escapes the possibility of criminal allegations surfacing close to the November elections. His supporters will be invigorated, and his campaign will focus again on his issues.

"Still, the way Kelty reported the loans from two major figures in his campaign did not sit well with many Republicans as well as with Democrats, and concern about the issue is a lot more bipartisan than Tuesday's party-line decision suggests. If Democrats push the issue, they will not only criticize the campaign finances but also the Election Board decision as a partisan whitewash.

"Kelty's method of reporting the loans will most likely not be decided in the courts, but it will be one more issue for voters to weigh in November."

Kelty, filled with glee that Tuesday's hearing somehow galvanized his right-wing base, apparently has forgotten that he's no longer running in a primary. This is prime time, Matt, and there are plenty of moderate and independent voters who don't think playing these kind of games is where it's at.

Praise be, Jim Bopp. You won the battle, but it looks like your foot's bleeding. There were so many ways out of this, yet you just had to take the road most frequently traveled by those on the GOP fringe: go on the partisan attack while the rest of the electorate stands around scratching its proverbial head.

Have fun with that.


Well look at it this way, at least now Bopp can go back to making sure rich kids can escape to the private schools on the public's dime


Want to illustrate a gaping hole in election laws?
google images(safe search off)
"Gaping hole"
or "gay Gaping Hole"; if you're bent that way..(or want to annoy pro-lifer, gop nutjobs)hmmm. I wonder if I google "nutjob";what will pop up?

Think about this.

Kelty's Campaign Committee has to repay the loan to Kelty as the person unless Kelty the person forgives the loan to the committee.

Kelty the person has to repay the unsecured loan to Fred Rost.

Fred Rost has to repay the secured loan to Wells Fargo Bank.

But the only one who is actually bound by a contract that doesn't have any chance of being forgiven is Rost.

Rost could, technically, forgive the loan to Kelty. And Kelty could forgive the loan to the campaign making Rost the only one who won't be forgiven by the bank. If Rost has any smarts at all, he won't forgive the loan since he is on the hook for the money (unless he is filthy rich and can afford it).

Tax question: If Rost forgives the loan to Kelty, does Kelty then have to pay personal income tax on it?

You are in the bar studying mood, aren't you TDW? That's something only a tax attorney, CPA or law school graduate studying for the bar would ask.

I plan to know just barely enough about tax law to pass the tax portion of the bar exam.

I think Kelty would have to pay personal income tax if the loan were forgiven, because it wouldn't be designated as a gift. It wouldn't be a gift or bequest. So it's "income derived from any source..."

I wonder too whether Rost would deduct it as a business expense. That would be a policy problem because the taxpayers would in essence be subsidizing partisan activity (kinda like we do with Eric "why is this guy not married" Miller's "nonprofit" Advance America).

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