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Jul 2, 2008 11:19 pm US/Central

Reality Check: Free Money For Campaign Donations

Reporting
Pat Kessler
(WCCO) It's one of the best kept political secrets in Minnesota: Free money. The state will give you $50 for contributing to an election campaign.
It's TRUE.

 If you donate to a political party, or a candidate for statewide office, or a candidate for Minnesota legislature, fill out this form, and the state sends you back up to $50. Seriously.

 IN FACT...

 Since 1995, the state of Minnesota refunded almost $58 million to Minnesota donors who gave money to political campaigns. Some call it the "Ronald Reagan Effect".

 Here's WHY.

 State and federal political donations used to be deductible on state and federal income tax forms. However, a massive overhaul of America's tax system by President Reagan abolished the deduction.

 And Minnesota replaced it with a refund program to encourage small givers.

That's NOT THE WHOLE STORY.

The refund only applies if you donate to candidates who agree to public spending limits on their campaigns. The contribution is over and above the public money they already get from the state. However, the money also goes to political parties, and it's a lot of money.

So here's what you NEED TO KNOW.

Political parties, not candidates, get almost half of all that tax money going out in campaign refunds.

From 1995 to 2006, Minnesota's DFL party received $8.2 million. Minnesota's Republican Party got almost three times that much with $21 million.

That's Reality Check.

To check the resources for this Reality Check click on the links below.
Minnesota Political Contribution Refund
Tax Information: Political Contribution Refund
Form: 2007 Political Contribution Refund Application
2006 Contribution Refund Summary by Candidates
2006 Contribution Refund Summary by Political Party

 

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

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