Former White House Counsel Files Complaint With IRS: Pull Media Matters’ Tax-Exempt Status

As reported by The Politico, last March, the far left, Soros-funded, Media Matters is preparing for what its founder, David Brock, described  as an all-out campaign of “guerrilla warfare and sabotage” aimed at the Fox News Channel.

Fox Business reports in the second of a three-part series that C. Boyden Gray, former White House counsel to President George W. Bush, has filed a civilian complaint with the IRS against the nonprofit Media Matters regarding their tax exempt status, which many of us have been questioning for years.. The complaint, filed on July 27, demands that the agency yank Media Matters’  tax-exempt status.

Citing a pattern of “unlawful conduct,” Gray writes in his petition, which FOX Business has obtained, that the nonprofit has “executed a partisan strategy” in violation of U.S. tax law as it exists “no longer to educate the public but, rather, to declare ‘war on FOX,’” Gray says, quoting from an interview its founder, David Brock, gave to the website Politico.

Also unlawful, Gray says, is the nonprofit’s reported goal to “disrupt” the commercial interests of News Corp.

(News Corp. is the parent of FOX News and FOX Business.)

None of these activities are sanctioned, or even found, in nonprofit tax law, Gray says, adding in an interview with FOX Business: “I filed the complaint pro bono. I have no official ties with FOX News or News Corp., the company doesn’t pay me a dime, I’m not on its payroll, and no one there asked me to do this. I filed it on my own.”

Media Matters did not return calls or emails for comment over a month-long period.

Gray, who now runs his own law firm in Washington, D.C., says: “I have never seen any tax-exempt organization getting into the kind of partisan activity Media Matters is now engaging in.”

Gray says he has “known” the nonprofit’s founder, Brock, “favorably,” but filed the IRS complaint “because of the potential abuse of tax-exempt funds.”

He adds: “No one would begrudge what they’re [Media Matters] doing with non-exempt funds, but it’s different when they have tax-exempt status — it’s like a government stamp of approval because of this government subsidy.”

The petition arose after Gray had written an opinion piece about the Media Matters controversy in June for the Washington Times.

Gray cites as evidence in his IRS complaint Media Matters’ reported attempt to disrupt News Corp.’s purchase of BSkyB, a British satellite broadcaster, and its efforts “to turn regulators in the U.S., U.K. and elsewhere against the network.’”

And Gray writes that aside from Media Matters’ “unsupportable attempt to tie FOX News to the Republican Party, the fact that Media Matters equates FOX News” with the GOP shows the nonprofit’s “own partisan intent.”

And sure to ignite further debate, Gray says the nonprofit’s activities do “not merely violate” the tax code, they also raise “grave first amendment concerns,” because the government is subsidizing “Media Matters’ attacks on FOX News’ speech, and FOX News employees’ speech,” all “antithetical to the First Amendment,” Gray says.

Read the rest at Fox Business.
A couple of weeks ago, after C. Boyden Gray, in his Washington Times’s piece called for  Media Matters’ tax exempt status to be revoked, John Sexton of Verum Serum noted that Doug Schoen,  a Democratic contributor to Fox news, had unintentionally admitted to, and built upon what Gray had written.
 Schoen had personally sat down with MMFA head David Brock and confirmed that his focus was not education but political advocacyfor one party:
I had breakfast with Media Matters founder David Brock about 6 months ago to talk about his efforts to strengthen the Democratic party– efforts that I fully support and believe are necessary.Brock was compelling in arguing that he would like to see the Democratic Party develop a different, more inclusive message for the 2012 election, recognizing that the Party in large part, had failed in 2010 because they did not present a positive and affirmative case to the electorate– an argument that I could only agree with.Brock also made clear that he saw his mission to try to the best of his ability to counteract Republican fundraising efforts, that had frankly exceeded in substance and sophistication, those of the Democrats…Brock also made it clear to me that his focus was on the party, and providing and creating a level playing field for it and its advocates, rather than positioning himself as exclusively or even primarily as a media critic.
From its inception, MMFA has been a far left political operation. However, so long as they restricted themselves to media criticism they were able to skate by on the public dime. Now that MMFA is training liberal politicos for media appearances and starting a fundraising campaign (also for liberals) any fig leaf of neutrality is gone. The entire organization is as partisan as it could possibly be and should have it’s 501(c)(3) status revoked.
 As Sexton also noted last Spring, Media Matters isn’t getting the results you would think they would for the millions it receives from left wing donors like their #1 Sugar Daddy, Soros:

According to web traffic evaluator, Quantcast, Politico averages 5.6 million monthly unique visitors, Media Matters a mere 646,200. Even if you give Media Matters the benefit of the doubt and double that number, they are still doing a fraction of the traffic of sites its size (at 1.3 million, it would still be far smaller than little Mediaite, with ten times the staff). That’s something that clearly should have been pointed out in the story.

With 90 employees and a $15 million annual budget, Media Matters’ traffic is about 6x what ours is (only 3x our best month). In case you’re wondering, our annual budget here at VS is $900.  Oh, and we issued zero corrections last year which makes us 24x as accurate as Media Matters.

The new Fox News Show, The Five, discussed the issue on its debut show, a couple of weeks ago. Greg Gutfeld’s take on who the “real victims” are in all this comes at 1:55.

See also:

Andrew Breitbart talks with Chris and Lori of America’s Radio News about Media Matters waging war on Fox News, and his controversy with former USDA employee Shirley Sherrod. Andrew Breitbart is a conservative blogger, activist, and founder of and


Big Journalism: Blood Money: How SEIU and Media Matters Stole Justice from Kenneth Gladney

Thursday Linkfest: Bus Tour Edition

As you no doubt know, as soon as Obama finishes counting his birthday money, he’s doing a hard pivot (for the umpteenth time) towards jobs, and is launching a bus tour throughout the Midwest at taxpayer expense! Jim Hoft asked a very good question: If Obama Administration Really Expects to Create Jobs Why Is Labor Secretary Solis Speaking at Anti-Capitalist Rallies?

Secretary of Labor Solis spoke atthe anti-capitalist, corporate-hating NPA event in March. Notice in the picture that the democracy arrow is pointing in one direction and the corporation arrow is pointing the other direction.The NPA is a radical anti-capitalist community organizing group linked to the SEIU. The group holds radical rallies against US businesses and business owners. The group also terrorizes children. And, of course, the group is also directly linked to Barack Obama.

The White House was so proud of the fact that Secretary Solis spoke at this socialist rally that they posted the news on their blog.

I think Obama’s bus tour calls for a photoshop contest. Here’s my submission:

Send me your submissions.

RCP: Krauthammer: Talking About Deficit Helps Obama Hide Record On Jobs:

Video at link: Steve Hayes says the “Empathizer in Chief’s bus tour is meant to show his empathy for the American people, and bring Independents who voted for him in 2008 back into his fold. Krauthammer says jobs is not an issue Obama can win on, but then again, neither is  the debt.

As Obama launches his tour, House Republicans are still asking Obama, “where are the jobs?”:

Michelle Malkin: The Steve Urkel-ization of the economy, redux

Apropos of today’s stock market plunge, increasing concerns about a double-dip recession, continued bond market gloom, anemic jobs numbers and skyrocketing layoffs, I thought it only fitting to resurrect the graphic of Obama’s Steve Urkel-ization of the economy.

Weasel Zippers: Report: Obama Administration Added $9.5 Billion Worth Of Government Regulations During July Alone…

Many House and Senate conservatives are reviving their battle against federal regulations, claiming that the president hasn’t stopped issuing job-killing rules during the debt ceiling fight. “While Washington and Americans have been focused on the debt ceiling, the Obama administration has continued to roll out more crushing red tape,” said a spokesperson for Wyoming Republican Sen. John Barrasso, who’s been championing the regulation fight.

American Power:Obama Isn’t Working, and He’s Only Halfway There:

Here’s an interesting news mashup. Turns out President Obama spoke to supporters in Chicago on Wednesday night, a DNC fundraiser and 50th birthday celebration. See RCP, “Obama: “We’re Not Even Halfway There Yet” (via Legal Insurrection). Added: A Memeorandum thread now.

See Mitt’s new ad at the link.

See also: Doug Powers at Michelle Malkin: Obama at Birthday Party/Fundraiser: We’re Not Even Halfway There Yet

Should we be surprised that  TOTUS made an appearance at the “Empathizer in Chief’s” birthday party?

Matthew Boyle, The Daily Caller:Obama’s 50th birthday party full of political folly, union resentments:

President Barack Obama’s decision to hire non-union workers to staff his birthday-party fundraiser isn’t sitting well with Big Labor, and Obama’s upcoming milestone has inspired a series of running jokes on Twitter.

Weasel Zippers: One Year Ago: Geither Declared “Welcome To The Recovery”…

Weasel Zippers: Pop Quiz: What do all these pics share in common?

Hint: Does the man ever sit with both feet on the floor?

Hot Air: Debbie Wasserman-Schultz: “We’ve really begun to turn the economy around”

If this sounds familiar, it’s because she said the same thing — verbatim — two months ago, before we found out that “turning the economy around” means adding 18,000 jobs a month. No worries, though: Jay Carney reassured America this afternoon that there’s no threat of a double-dip recession.

How’s that auto bailout working out? Seton Motley at Big Government’s been keeping an eye on it and doesn’t like what he sees: Bailed Out GM CEO Akerson – The Taxpayers’ Worst Nightmare

If you are the Chief Executive Officer (CEO) of a company that has received $50 billion in federal bailout coin, there are certain things that you realistically shouldn’t say or do.

Both from a substantive policy and an optics perspective, you should walk a pretty straight line until We the People are made whole.

Behold General Motors (GM) CEO Dan Akerson – a man who obviously doesn’t adhere to this philosophy.

As we said back in March, Akerson is a foundational part of the Washington, D.C.-Wall Street crony capitalism nexus.

Akerson is not – and never has been – a car guy.  He himself said so.  What is he?  He is a DC-connected, Wall Street hedge fund big coin guy.

Akerson’s immediately preceding gig was Managing Director and head of Global Buyout for the incredibly inside-the-Beltway-connected Carlyle Group.

This hip-joined relationship with the federal Leviathan means Akerson’s a cardboard cutout for the real CEO of Government Motors – U.S. Treasury Secretary (and yet another fellow DC-Wall Streeter) Tim Geithner.

And from all we have since seen, Akerson is one giant toe on the Huge Government, Obama Administration line.

We have for the last several weeks witnessed the federal government engage in a debt ceiling debate.  The warped focus throughout has been “How will this affect Wall Street?”

Almost never has it been “How will this affect taxpayers?”

In the end, We the People are being force fed a deal that pleases Wall Street – and leaves the taxpayers on the hook for another $10 trillion.

Government Motors – under Akerson – is similarly situated.  The absolute last thing about which they seem to care is We the People.  We stand to lose between $11 and $13 billion on our generous – conscripted – GM bailout.

And we get the distinct impression that Akerson couldn’t care less.

Bob McCarty Writes:Flight 93 Memorial Still Resembles Victory Mosque As 10th Anniversary of 9-11 Attacks Draws Near

Rep. Joe Walsh has a message for Democrats, particularly, the Vice President: