House Republicans seek IRS probe of AARP

WASHINGTON – AARP lobbied for the new health care law and now it stands to profit, Republican lawmakers charged Wednesday as they called for the IRS to investigate whether the powerful interest group representing older Americans should be stripped of its federal tax exemption.

Three veteran GOP representatives released a report that estimates the seniors lobby could make an additional $1 billion over 10 years on health insurance plans whose sales are expected to pick up under the new law. They also questioned seven-figure compensation for some AARP executives.
"Based on the available evidence, substantial questions remain about whether AARP should maintain its tax-exempt status," said the report, released by Reps. Wally Herger of California, Charles Boustany of Louisiana and Dave Reichert of Washington.
AARP said profit had nothing to do with its support for President Barack Obama's health care overhaul, which expands coverage to nearly all Americans, a longstanding goal of the organization.
"We are very disappointed in the report and reject its conclusions," said AARP President Lee Hammond. "AARP is no more an insurance company than we are an online travel company ... the royalties we receive allow us to keep member dues low."
The three Republican lawmakers are members of the influential Ways and Means Committee, which writes tax law. Boustany chairs the oversight subcommittee, and Herger is in charge of the health panel responsible for Medicare.
"We believe AARP operates in direct opposition to their senior membership," Herger said at a Capitol Hill press conference.
Scoffing at the report, Rep. Sander Levin of Michigan, the senior Ways and Means Democrat, called it a "witch hunt" to punish supporters of Obama's law.
The dual nature of AARP has raised questions before.