The IRS Investigates the NAACP

This is a partial transcript from "The O'Reilly Factor," Oct. 29, 2004, that has been edited for clarity.

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BILL O'REILLY, HOST:  In the "Impact" segment tonight, as you may know, the NAACP is the  nation's oldest civil-rights organization, but now the IRS is investigating that group because its chairman, Julian Bond, has viciously attacked the Bush administration.

(BEGIN VIDEO CLIP)

JULIAN BOND, CHAIRMAN, NAACP:  If a president tells a lie about having  an affair, they say impeach him.  If a president lies about going to war,  they say reelect him.  They operate a perpetual motion attack machine, and  they squeal like stuck pigs if you answer back.

(END VIDEO CLIP)

O'REILLY:  The problem is the NAACP is a tax-exempt organization and  says it's nonpartisan.  That why it gets tax-exempt status.

Joining us now from Washington is Lawrence Guyot, a civil-rights activist, and Robert Woodson, the founder of the National Center for  Neighborhood Enterprise.

Mr. Woodson, we'll begin with you.  Your reaction to the IRS  investigation, sir.

ROBERT WOODSON, NATIONAL CENTER FOR NEIGHBORHOOD ENTERPRISE:  Well,  first of all, I think the lead is sort of misleading.  The NAACP is being  charged not just because of a statement critical of the president, that  since Julian Bond and Kweisi Mfume have been in power, they have hijacked  that organization and made it an adjunct to the left wing of the Democratic  Party.

At their convention in Philadelphia, there were banners up recruiting  people for $300 to $500 a week to go out and defeat George Bush.  On some  of the buses that were supposed to be nonpartisan registering people to  vote, there were Democratic literature on those buses.  So there has been a  pattern of Kweisi Mfume and Julian Bond at the conventions saying four more  years.

So there was overt political participation there, and I really think  that IRS is justified.  And Julian Bond has believed that because he's  black and he's with a civil-rights organization that he's had a racial  exemption from accountability, and I think that racial exemption has been  challenged by the IRS, and I'm pleased to see it happen.

O'REILLY:  All right.  Mr. Guyot, how do you see it?

LAWRENCE GUYOT, CIVIL-RIGHTS ACTIVIST:  The IRS says itself they're  attacking the NAACP because — specifically because of Mr. Bond's attack on  the policies of the president.  Clear.  It doesn't mention the Democratic  Party.  It talks about his attack on the president.

Let's be very clear.  I was approached three years ago to join with a  group to attack the tax exemption of the Christian Coalition.  I said I  don't want any part of that because, first, the Christian Coalition, then  the NAACP, then the Catholic Church, then the Methodist.

Let's be very clear.  Kerry is going to win this presidential  election.  This matter will not reach court.  It's going to be settled  because no one can afford to have this kind of explosive issue that cuts  directly at freedom of speech.

O'REILLY:  All right, but...

GUYOT:  We just had a discussion about freedom of speech and how it's  unlimited.

O'REILLY:  Freedom of speech is...

GUYOT:  This is clearly a case...

O'REILLY:  Whoa, whoa.  Wait.  Mr. Guyot.

GUYOT:  ... of political expression.

O'REILLY:  Wait a minute.  I'm all for freedom of speech, but I don't  want to pay for it.  See now, look, the NAACP is a $40-million-a-year  enterprise, and it doesn't pay any taxes because it's supposed to be  nonpartisan.  In its own literature, it describes itself thus.

So, if it's not nonpartisan, that is what they call fraud in the  inducement.  It is saying it's nonpartisan, but it is acting in a very  partisan way.  Why then, sir, should my tax dollars go there?

GUYOT:  Because the NAACP has not endorsed a candidate nor is it  stupid enough to.  The NAACP has not organized openly as an organization  against — for any — for or against any political candidate.

The NAACP has expressed its sense of history and its sense both of  Democrats and Republicans traditionally.  It is doing that now, and it will  continue to do that.

O'REILLY:  All right.  What do you say, Mr. Woodson, to that?

WOODSON:  That is just not true.  First of all, the NAACP in the year  2000, in that election, they targeted 10 states that were critical to the  Democratic Party, and some of those ads were scurrilous, attacking the —  they were clearly trying to influence.  Plus, as I said, there was campaign  literature on many of the buses that were going out to recruit blacks for  the party.

The Christian Coalition — the IRS investigated them for 10 years.   Jerry Falwell and some of the people on the right — they had to pay fines.   Julian Bond believed that because he's black that IRS would leave him  alone, that they have a racial exemption, and I'm pleased that that  exemption has withdrawn and that they're going after him.

Julian Bond has to obey the law.  The NAACP has to obey the law.  It  has abandoned the moral high ground that defines its influence in the black  community.  It is on the other side of all of the major issues that black  America — large segments of black America support.  It's out of touch  because...

O'REILLY:  All right.  Now, Mr. Guyot, let me ask you a very specific  question.

WOODSON:  ... it has become an adjunct of the party.

GUYOT:  OK.

O'REILLY:  If it's true that there was Democratic literature on NAACP  buses and in their offices and that people who were signing up for the  organization or donors or whatever then received this literature and did  not receive GOP literature, you would surely, sir, say it isn't a  nonpartisan — and you don't have to overtly say we want so-and-so to win.   If you're giving their campaign literature out, that is basically an  expression of an endorsement, no?

GUYOT:  This is the group that invited the president to come and speak  to them.  This is a group that fought this same kind of case in 1957 in  Alabama, when Alabama said give us your membership so we can destroy you.   This is too risky an issue on the — buttressed by the First Amendment and  political association.  This will go nowhere.

O'REILLY:  All right.  Well, I agree with you if Kerry's elected that  it won't go anywhere, but if Bush is reelected...

GUYOT:  Even if, God forbid, Bush...

O'REILLY:  If Bush...

GUYOT:  ... is elected, it won't go anywhere.

O'REILLY:  Yes, it will.

GUYOT:  But we don't have to worry about that.  Bush cannot win this  election.  He won't win this election.

O'REILLY:  OK, but, if he does, then you're going to have to come back  and, what, give everybody a dollar?  Come on.

GUYOT:  No, no, no.

O'REILLY:  You know, anything could happen, and we'll just it — the  horse ride play out.

But I — Mr. Guyot, I'm just — you just dodged my question.  You do  it very eloquently, and we like you as a guest, but you dodged the  question.

GUYOT:  I did not.

O'REILLY:  Yes, you did.

GUYOT:  Let's try again.

O'REILLY:  But I'll rephrase, all right?

GUYOT:  OK.

O'REILLY:  Campaign literature is being disseminate by the NAACP to  help the Democrats, and you're telling me, sir, that's not an endorsement  and that's not a violation of nonprofit status?  Come on?

GUYOT:  I'm telling that you no organization can be responsible for  every piece of literature that is associated or disseminated at its  convention.  Show me any vote taken by the NAACP that says we are going to  support Kerry.  Then I'm with you.

O'REILLY:  All right.  Now what do you reply to...

GUYOT:  But other — absent that...

O'REILLY:  Mr. Woodson, Mr. Guyot says that...

GUYOT:  There's no organizational commitment.

WOODSON:  At the convention...

O'REILLY:  OK.  He says that...

WOODSON:  At the convention — at the convention in Philadelphia,  there was a huge banner supporting the Democratic ticket, and, also, there  were people operating at a kiosk actually recruiting people to go out and  work to defeat George Bush.  Are you telling me that somehow that that's  fair?

O'REILLY:  It's not an endorsement?  Come on.  Yes, it is.

GUYOT:  I'm telling you — I'm asking both of you.  Show me a  resolution passed by the executive board of the NAACP saying we're  supporting Kerry.  Then you've got me.  I'm with you.

O'REILLY:  All right.  I think we've got the picture.

GUYOT:  I'll join with the chorus of vigilantes.

O'REILLY:  Gentlemen, we've got the picture, and we'll let the  audience make up their own mind.  We appreciate the spirited debate.  Thank you very much.

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