New 527 Group Plans Attack on Obama Themes

by Josh Gerstein

Mon, 8 Sep 2008 at 12:56 AM

Republican political strategists in California are setting up a new political organization which hopes to run television commercials undermining the central themes of Senator Obama's presidential campaign while underscoring the strengths of his Republican opponent, Senator McCain of Arizona.

Leadership for America's Future was formally created on Thursday by a Sacramento, Calif.-based attorney, Thomas Hiltachk, according to a form registering the so-called 527 group with the Internal Revenue Service.

The organization's slick Web site includes a 30-second video (click on "MEDIA") that shows images of war and misery around the world as an announcer gravely warns of the dangers of putting America in untested hands.

"It's not always the world we dream of. It can be belligerent and unpredictable, where an unsure response can have lasting consequences for generations," the announcer says over a montage that includes a plane crashing into the World Trade Center on September 11, 2001 and video of an American flag fluttering at the gutted site after the terrorist attacks. "No matter how eloquently spoken, hoping for change won't change the world. Only the strength of experience can do that."

Other portions of the Web site pay tribute to leaders such as presidents Reagan, Eisenhower, and Lincoln, as well as Mayor Giuliani, and "the American Soldier." The site was created by a Sacramento-based political consulting and advocacy firm which does work for Republican candidates, McNally Temple Associates, Inc.

One of the partners in that firm, Raymond McNally, told The New York Sun last night that no solid funding was lined up for the so-called 527 group. "We wanted to get this up and running, have something for people to look at and kick the tires," Mr. McNally said. He said he was inspired to start the group after traveling to Iraq and Israel earlier this year.

"I came back believing the election is about how we conduct ourselves internationally. There's a lot at stake because countries like Iran are sitting there and are not going to be happy until they incinerate Israel," Mr. McNally said. "It's not just domestic issues that will decide America's future."

Neither the video nor the site mentions Mr. Obama or Mr. McCain. A disclaimer on the Web says that the group will not "advocate the defeat or election of any candidate." However, the language in the online video seems clearly intended to cut at the Democratic presidential nominee, Mr. Obama, while boosting Mr. McCain.

Asked if the script should be understood that way, Mr. McNally said, "The bottom line, honestly, is people will interpret it as they will. This is the world the way we see it. We'll leave it to the viewers to walk away taking away what they will."

The new organization could be particularly attractive to Republican donors, since Mr. McCain's campaign is relying on public funding and will likely be outspent several times by Mr. Obama, who is not. A link to contribute on the site was not active last night, but in an indication that the group may seek to keep its donors secret the site indicates that gifts are "not .reportable under federal law."

Mr. McNally supported Mr. Giuliani in the Republican primary, but the consultant said the new group has no tie to the former mayor despite touting him as a personification of courageous leadership. "We were looking around for people who are bona fide leaders. By anyone's means, Giuliani conducted himself in a strong and frankly heroic fashion after 9/11. He steeled our nerves and reassured us," Mr. McNally said.

"It is the purpose of the association to educate the public on the traits of leadership," Mr. Hiltachk wrote in the IRS filing registering the group under Section 527 of the tax code, which is reserved for political organizations. The lawyer did not return phone or e-mail messages last evening seeking comment for this article.

If the group's purpose is solely educational, it could have registered under section 501(c)(3) of the tax code as a charity. In that event, donations would have been tax deductible. However, the 527 registration signifies a political purpose, even if the group claims not to be expressly supporting any political candidate.

Mr. Hiltachk drew significant press attention last year for launching a drive for a referendum that would have reallocated California's electoral votes by Congressional district, effectively giving the Republican candidate about 20 of the state's 55 electoral votes instead of the zero the GOP candidate has gotten in recent elections under the winner-take-all system. The effort was attacked by Democrats as an underhanded attempt to fix the election for the Republicans and in particular , as a proxy for Mr. Giuliani's campaign.

Last September, Mr. Hiltachk resigned, citing his difficulty in getting full disclosure of funding for the electoral vote referendum. A New York hedge fund manager who supported Mr. Giuliani, Paul Singer, later disclosed that he had given $175,000 to collect signatures for the referendum. The drive was ultimately abandoned, at least for this year.

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