Several things:
1. 501(c)(4)s are already prohibited from spending on campaigns.
2. If the IRS tries to insert the term "exclusively" in regulations they will be struck down.
3. The bolded sentence above won't fly because use of the term "political activities" is contrary to current case law and the term itself is problematic.
In the absence of statutory regulation status, which the IRS does not have under section 501, the IRS cannot write tax law. That power belongs to Congress.
I personally don't believe the IRS can, or should, be the instrument of change on this issue. That should be Congress. Furthermore, I've never seen a valid complaint with the current system. There just seems to be a general hysteria among the left that someone will contribute to a 501(c)(4) that will promote a policy stance (e.g., fiscal responsibility) that is popular ATM among the right.
Fern
Mostly everything in your post in incorrect.
1.) The quoted text you were referring to was taken directly from the IRS website. That is what they define a 501(c)4 organization to be. Defined here
http://www.irs.gov/Charities-&-Non-Profits/Other-Non-Profits/Social-Welfare-Organizations
2.) 501(c)4's are not prohibited from spending on elections. If you missed it that is what this whole debate is over.
3.) Here is an article on 501(c)4's
http://www.washingtonpost.com/blogs/the-fix/wp/2013/05/13/what-is-a-501c4-anyway/
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