Democrats have said they support closing the LLC loophole for years. Will they actually do it?

Candidates benefitted strongly from the real estate industry-favored loophole even as they campaigned against it

TRD New York /
Nov.November 23, 2018 03:30 PM

New York State Capitol in Albany and Governor Andrew Cuomo (Credit: Getty Images and Wikipedia)

With Democrats now fully in control of New York’s state government, their constituents should soon find out whether all of those promises to close the oft-maligned LLC loophole were more than just rhetoric.

The law allows limited liability companies to act like people and donate up to $65,100 to each statewide candidate during each election cycle, much more than the $5,000 limit placed on corporations. Democrats campaigned on ending this during their bid to recapture the State Senate while simultaneously accepting more than $400,000 from LLCs, raising questions about how serious they were in their promises to overhaul the state’s campaign finance laws, according to the New York Times.

The real estate industry has long taken advantage of this law during political campaigns, and the state capital may not turn completely against them even with Democrats in control of all branches. The Assembly has already voted to close the loophole multiple times, but Gov. Andrew Cuomo  recently indicated members could be less enthusiastic about closing the loophole now that it could become law.

Cuomo himself has said he supports closing the loophole and blamed Republicans for keeping it open. At the same time, he has raised much more through LLCs than the Republicans who controlled the State Senate over the years.

Democrats said their majority across Albany would not prevent them from working to close the loophole, and they might not end up receiving much resistance from the real estate industry when trying to do so. Rather, executives could feel relieved about not having to donate so generously to candidates.

“For better or for worse, people campaign under the laws as they are when they’re running,” Michael Kink, executive director of the Strong Economy for All Coalition—a union and community organization group—told the Times. “There is a consensus among Democrats that we should change this law.” [NYT] – Eddie Small


Related Articles

arrow_forward_ios
348 Court Street (Photo by Justin Heiman/Getty Images)

Collapses raise questions about safety-law exemption

Collapses raise questions about safety-law exemption
Senate Minority Leader Chuck Schumer and Senate Majority Leader Mitch McConnell (Schumer by Tasos Katopodis/Getty Images; McConnell by Ting Shen/Xinhua via Getty)

Schumer v. McConnell on SALT: Who’s gonna give?

Schumer v. McConnell on SALT: Who’s gonna give?
From left: Jared Kushner, 715 Park Avenue, Deutsche Bank CEO Christian Sewing, and Rosemary Vrablic (Credits: Kushner by BRENDAN SMIALOWSKI/AFP via Getty Images; 715 Park via Google Maps; Sewing by by Thomas Lohnes/Getty Images; Vrablic by PAUL LAURIE/Patrick McMullan via Getty Images)

Apartment sale to banker for Trump and Kushner probed

Apartment sale to banker for Trump and Kushner probed
Assemblyman Harvey Epstein and Senator Brad Hoylman (Epstein by Erik McGregor/LightRocket via Getty Images; Hoylman by Roy Rochlin/Getty Images)

Lawmakers introduce bill to keep rent regulation alive

Lawmakers introduce bill to keep rent regulation alive
China’s housing market is into bubble territory

There are fears of a great housing bubble in China

There are fears of a great housing bubble in China
Governor Andrew Cuomo (Getty, iStock)

What NYC’s phase 4 means for real estate

What NYC’s phase 4 means for real estate
Hong Kong

Foreign firms are vacating Hong Kong offices like never before

Foreign firms are vacating Hong Kong offices like never before
Mayor Bill de Blasio (Getty, Wikimedia)

Landlords challenge city laws protecting non-paying businesses

Landlords challenge city laws protecting non-paying businesses
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...