Last week, Gov. Cuomo announced that he is submitting to the Legislature legislation to close the LLC loophole in New York State.
The Governor sent the Legislature eight bills – one that applies to all political offices, and one for each of the state’s elected offices – that would treat limited liability corporations (LLCs) in the same manner that traditional corporations are treated, limiting their political contributions to $5,000 per year.
While the LLC loophole has gotten a lot of attention, the issue of campaign finance reform is much more complex. The problems that plague New York’s political system will not be solved just by addressing contribution limits for LLCs. For example, closing the LLC loophole won’t close the loopholes that politically-connected labor unions use to contribute huge amounts of money in political campaigns.
If we’re going to “fix” the state’s campaign finance system, we have to ensure a level playing field for all, including the employer community and taxpayers.