David Thomas: “Mr. Speaker, we have had discussions in this area. The gentleman well knows that this problem was brought to our…”

“Mr. Speaker, we have had discussions in this area. The gentleman well knows that this problem was brought to our attention when the lobbying bill was moving through the Senate, as a matter of fact, and the cosponsors on the Senate side, Senator Simpson and Senator Craig, had attempted to correct it at that time. It is not that we are responsive to a narrow segment of those who are affected by the lobbying bill. It is that this was an area which is in clear conflict because of the unique history of this particular group. Blue Cross/Blue Shield associations were classified as 501(c)(4)'s back in the 1930's. Usually if you are classified under the Internal Revenue Tax Code as a 501(c)(4), for example, you are tax exempt in your activities. Ironically, in 1986 in the tax bill Congress placed the selfsame organizations in a taxable category, so they are now classified as 501(c)(4)'s, but they are, in fact, paying taxes, so they do not get a tax-free benefit from the classification.”