Albany Strategy Lets Rich Evade Donation Limits - New York Times
ALBANY, Aug. 3 — As a candidate for governor of New York, Eliot Spitzer is barred from taking more than $50,100 from any single donor.

But that has not stopped wealthy donors from legally circumventing these state contribution limits to shower six-figure donations on the Spitzer campaign. Their technique? Using limited liability corporations as a vehicle to give well above the maximum the state allows.

In fact, this year’s statewide political campaigns are awash with donations from L.L.C.’s, which are business entities that can be set up for as little as a couple of hundred dollars and provide special tax benefits and limits on financial liability. Six of the eight major-party candidates for governor or attorney general have taken donations from individuals who have contributed the maximum and then donated further through L.L.C.’s.

The donations are legal in New York State races, but restrictions have been put on them at the federal level and in New York City races. Election watchdog groups say the donations violate the spirit of campaign finance laws that seek to limit the influence of wealthy donors.

“It’s yet another loophole that makes our already weak campaign finance laws meaningless,” said Rachel Leon, executive director of Common Cause New York, which has prepared an analysis of these donations and shared its findings with The New York Times. “We have the highest contribution limits of any state that has limits, but even those laws you can get around with these loopholes.”

No wonder Spitzer has so much money to run ads on television. So far he has accepted over $600,000 in donations that exceed the limit. He allows it even tho he is the top law enforcement officer in the state. You’d think he would abide by the letter of the Law instead of circumventing it..