Kegs, hazing, and now possibly tax breaks – fraternities make their mark on congress

psychopathic and cultic and greedy college fraternities and sororities calling for tax dollars and tax breaks

 

 

About 40 per cent of US senators, and 25 per cent of US representatives,  belonged to fraternities or sororities in college. On April 24, more than a  dozen of these grateful alumni extolled Greek life at an annual $500-a-plate  dinner in a Washington hotel ballroom for “FratPAC,” the industry’s political  arm.

One by one, they took the podium and praised fraternities for teaching them  loyalty, leadership, and practical skills.

“We learned to tap a keg,” declared Representative Steven Palazzo, a Mississippi  Republican and Sigma Chi brother, who then yelled a cheer as hundreds of FratPAC  donors applauded.

Many of the legislators also pledged support for FratPAC’s pet legislation: a  multi-million-dollar tax break to let fraternities and sororities use charitable  donations to renovate and help build chapter houses.

“This time, we think we can get it done,” said Ohio Republican Steve Stivers,  a Delta Upsilon alumnus, adding, “We need more Greeks in Congress.”

While fraternities used to limit their political activity to fending off  potential threats, they’re “playing offence today” by promoting initiatives such  as the tax break, FratPAC and two companion groups told fraternity leaders in a  January 10, 2011, memo.

Besides pushing the tax bill, FratPAC, as the Fraternity and Sorority  Political Action Committee calls itself on its Twitter page, has helped dissuade  US Representative Frederica Wilson from filing federal anti-hazing legislation.  Ms Wilson, a Democrat, is co-sponsoring the tax proposal with six senators and  more than 50 other representatives.

Debbie Smith, whose 21-year-old son died in 2005 from heart failure and  seizures after a hazing ritual, is “dumbfounded” by the industry’s lobbying for  a tax break and against national hazing penalties, she said.

Ms Smith’s son, Matthew Carrington, collapsed after being forced to do  push-ups in raw sewage while fans blasted cold air on him in a basement at Chi  Tau fraternity at California State University in Chico. After his death, her  advocacy spurred the California legislature to enact “Matt’s Law,” toughening  hazing penalties.

“Why do fraternities need government help?” Ms Smith asked. “They want to  build more houses for hazing? I don’t think so. They need to learn safety  first.”

Attracting undergraduates with aggressive recruiting and the prospect of jobs  at Wall Street firms and other fields dominated by Greek alumni, fraternities  are making a comeback on college campuses.

Meanwhile the toll from hazing and binge drinking is mounting. The 101  fraternities and sororities in the industry’s trade groups had 630,052 members  in 2012, up 25 per cent from 503,875 in 2007. Since 2005, 59 students have died  in incidents involving fraternities, about half of them alcohol-related,  according to data compiled by Bloomberg. Ten students died in 2012, the most  fatalities in at least a decade.

A 1996 fraternity house fire at the University of North Carolina that killed  five students spurred the industry’s drive for the tax break. They decided that  they needed a federal law to let them tap funds in their charitable foundations  to outfit chapter houses with fire sprinklers. About half of all fraternity  houses lack sprinklers, according to an internal industry memorandum reviewed by  Bloomberg News.

In 2003, the tax bill passed the House. Two years later, fraternities and  sororities established FratPAC, which has contributed $818,000 to political  campaigns, primarily to Republicans. It has made some of its largest  contributions to key backers of its tax initiative, and to members of the House  Ways and Means committee, where the bill is pending.

It has given $29,500 to Representative Paul Ryan, the 2012 Republican vice  presidential nominee and chairman of the House Budget Committee, and $24,500 to  Pete Sessions, chairman of the House Rules Committee. Mr Ryan, a member of Delta  Tau Delta at Miami University in Ohio, previously sponsored FratPAC’s tax- break  legislation. Mr Sessions, a long-time supporter of the bill, is now the  sponsor.

The bill improves housing for college students “so that they avoid problems  that we have seen across the country where there are electrical fires and  substandard housing,” Mr Sessions said in an interview. He added that he “served  proudly” as a member of Pi Kappa Alpha at Southwestern University in Georgetown,  Texas.

Mr Ryan declined to comment.

As a congressman from North Dakota and member of the Ways and Means  committee, Rick Berg co-sponsored the tax bill. FratPAC contributed $10,000 to  his 2012 campaign for the US Senate. He lost.

“The organisation is much more than their financial support,” said Mr Berg, a  member of the Farmhouse International Fraternity. “There’s a network there.”

Of the 81 House and Senate incumbents to whom FratPAC contributed in the last  election cycle, 54, or two-thirds, sponsored or co-sponsored the tax bill,  according to FratPAC. It also donated to 17 first-time candidates.

FratPAC doesn’t donate to candidates just because they support the tax break,  said Kevin O’Neill, a lobbyist at Washington-based Patton Boggs and FratPAC’s  executive director. He was a fundraiser for the Bush-Cheney re-election campaign  in 2004 and ran unsuccessfully for Congress as a Republican in 2007.

It “looks at a variety of factors,” he said. “Good government needs more  fraternity-sorority alumni who can help us tackle the major challenges  confronting our nation.”

FratPAC is seeking to send more fraternity and sorority alumni to Congress.  Freshman Republicans Robert Pittenger, a member of Kappa Alpha Order and a  University of Texas graduate, and Brad Wenstrup, who joined Sigma Alpha Epsilon  at the University of Cincinnati, spoke at the ballroom dinner.

“We invest” in open Congressional seats, Mr O’Neill told the gathering.

FratPAC emphasises alumni ties in its lobbying, said former US Representative  Ron Klein, a Florida Democrat who received $5000 from the group in 2010. The  national fraternity groups that came to see him about the tax bill reminded him  that he had been president of the Alpha Epsilon Pi chapter at Ohio State  University, he said. He co-sponsored the legislation in 2009.

“The way they’re targeting is a logical way to do it,” Mr Klein said. “If you  happen to have been in a fraternity or sorority in college, and you lived in one  of these houses, they make it a health and safety issue.”

Another fraternity alumnus, former Senate Majority Leader Trent Lott,  co-sponsored the bill in 2007. Mr Lott, who had been president of the Sigma Nu  chapter at the University of Mississippi, had such warm memories that he awarded  jobs and favours to fraternity brothers, according to Curtis Wilkie, author of  The Fall of the House of Zeus. Mr Lott, who resigned from the Senate in  December 2007, declined to comment.

Representative Palazzo, also a Mississippi Republican, is currently a  co-sponsor. He denies having made the keg reference.

The tax proposal has gained bi-partisan support. Last term, it had 169 House  sponsors and co-sponsors, including 105 Republicans and 64 Democrats, and 22  sponsors and co-sponsors in the Senate, including 15 Republicans and seven  Democrats. Formally known as the Collegiate Housing and Infrastructure Act, it  would cost taxpayers $148 million over 10 years, according to a 2007 estimate by  the Joint Committee on Taxation.

Under IRS interpretation of existing law, donations to fraternities’  charitable foundations may be used “to build or improve” libraries or computer  rooms within fraternity houses, not for sleeping or “recreational areas,” which  the Internal Revenue Service deems “incidental” to schooling.

The bill, which fraternity leaders say is endorsed by dozens of colleges,  would eliminate such restrictions by allowing fraternity and sorority  foundations to use tax-deductible gifts to “provide, improve, operate or  maintain” chapter housing. Fraternity foundations collectively held $534 million  in 2010. Other groups that provide housing to college students would also  benefit from the bill, its advocates say.

Donations are needed for fire sprinklers and other repairs, said Eve Riley,  former chairwoman of the National Panhellenic Conference, or NPC, an  Indianapolis-based group representing 26 sororities.

“They’re trying to get the houses up to code,” she said. “It’s not for  building houses.”

The tax benefit is primarily for “safety for students,” Cindy Stellhorn,  FratPAC’s president and an insurance executive, said in an interview.

The bill has other benefits for Greek institutions. It would probably  increase gifts to fraternity foundations, and help “leverage private funds” to  build new housing, according to the industry’s April 2011 lobbying guide.

Some colleges, such as Clemson University in South Carolina, have endorsed  the tax break. Clemson has a “robust Greek community,” said Katy Bayless, its  director of federal relations. Clemson has also hired O’Neill to lobby for  federal funding.

On June 8, 2011, Mr O’Neill and another Patton Boggs lobbyist met with a  staff member of the House Ways and Means Committee to explain the legislation,  according to a memorandum by FratPAC and two companion groups, the NPC and the  North American Interfraternity Conference. Fraternities and their allies said  they hope the bill will be part of comprehensive tax reform that Ways and Means  Chairman Dave Camp is promising.

“We’re hoping” it will pass this year, FratPAC president Stellhorn said. “We  had great receptions when we were on the Hill in April.”

Preceding the April 24 ballroom dinner, hundreds of undergraduate fraternity  and sorority members descended on Capitol Hill to lobby for the tax bill. Armed  with talking points, maps and schedules, they moved in small groups from one  lawmaker’s office to the next for meetings arranged by Mr O’Neill’s firm.

The conversations sometimes began with legislators reminiscing about their  own fraternity days. Some students posed with members of Congress for photos and  posted them on FratPAC’s Twitter page.

Mike Rodmaker, a student at the University of Cincinnati and president of its  Interfraternity Council, said he pitched the tax break to Senator Rob Portman,  an Ohio Republican, who wasn’t in a fraternity. Portman’s spokeswoman, Caitlin  Dunn, said he is reviewing the legislation.

“He was definitely receptive,” Mr Rodmaker said. “We’re the second-largest  landlord behind colleges and universities.”

Read more: http://www.smh.com.au/world/kegs-hazing-and-now-possibly-tax-breaks–fraternities-make-their-mark-on-congress-20130726-2qo4k.html#ixzz2aO93M56R

 

 

further reading:  Paying for the Party: How college maintains inequality by Elizabeth A Armstrong and Laura T. Hamilton

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