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Context of 'February 20, 2012: Koch Brothers’ Open Support of Wisconsin Governor May Constitute Illegal Coordination, Journalist Writes'

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Senator Benjamin Tillman, an ardent segregationist who once said, ‘My Democracy means white supremacy.’ Senator Benjamin Tillman, an ardent segregationist who once said, ‘My Democracy means white supremacy.’ [Source: Black Americans in Congress]President Theodore “Teddy” Roosevelt signs the Tillman Act into law. The Act prohibits monetary contributions to national political campaigns by corporations and national banks. Roosevelt, dogged by allegations that he had accepted improper donations during his 1904 presidential campaign, has pushed for such restrictions since he took office (see August 23, 1902 and December 5, 1905). [Federal Elections Commission, 1998; Center for Responsive Politics, 2002 pdf file; Moneyocracy, 2/2012] Senator Benjamin Tillman (D-SC), later described by National Public Radio as a “populist and virulent racist,” sponsored the bill. [National Public Radio, 2012] In 1900, Tillman was quoted as saying about black voters: “We have done our level best. We have scratched our heads to find out how we could eliminate every last one of them. We stuffed ballot boxes. We shot them. We are not ashamed of it.” [Atlas, 2010, pp. 205] Unfortunately, the law is easily circumvented. Businesses and corporations give employees large “bonuses” with the understanding that the employee then gives the bonus to a candidate “endorsed” by the firm. Not only do the corporations find and exploit this loophole, they receive an additional tax deduction for “employee benefits.” The law will be amended to cover primary elections in 1911 (see 1911). [Campaign Finance Timeline, 1999]

Entity Tags: Benjamin Tillman, Theodore Roosevelt, Tillman Act

Timeline Tags: Civil Liberties

The federal government revises and expands the Federal Corrupt Practices Act (FCPA—see June 25, 1910), a campaign finance law that lacks any enforcement or verification mechanisms, in the wake of the Teapot Dome corruption scandal. The amended version codifies and revises the expenditure limits and disclosure procedures for US Congressional candidates. It will replace the original FCPA as well as its predecessor, the Tillman Act (see 1907), and will remain the backbone of American campaign finance law until 1971. All campaign spending is strictly regulated, with contributions of $50 and over during a calendar year mandated to be reported. Senatorial candidates can spend no more than three cents for each voter in the last election, to a maximum of $25,000. House candidates may also spend up to three cents per voter in the last election, up to a $5,000 maximum. Offers of patronage and contracts are banned, as is any form of bribery. Corporate contributions of all kinds are banned. However, the power of enforcement is entirely vested within Congress, and thusly is routinely ignored. [Campaign Finance Timeline, 1999; Center for Responsive Politics, 2002 pdf file; Pearson Education, 2004; National Public Radio, 2012] In 1966, President Lyndon B. Johnson will refer to the FCPA as “more loophole than law.” [Connecticut Network, 2006 pdf file; National Public Radio, 2012]

Entity Tags: Tillman Act, Federal Corrupt Practices Act

Timeline Tags: Civil Liberties

The Smith-Connally Act restricts contributions to federal candidates from labor unions as well as from corporate and interstate banks (see 1925). The law is passed in response to the powerful influence of labor unions in elections beginning in 1936, where some unions used labor dues to support federal candidates [Center for Responsive Politics, 2002 pdf file] , and by public outrage at a steelworkers’ union going on strike for higher wages during the war, an action characterized by many as unpatriotic. The law was written both to punish labor unions and to make lawmakers less dependent on them and their contributions. [Campaign Finance Timeline, 1999] One example held up to scrutiny is the 1936 donation of $500,000 in union funds to the Democratic Party by John L. Lewis of the Congress of Industrial Organizations (CIO). [Connecticut Network, 2006 pdf file] Motivated by anti-union and anti-liberal sentiment after the war’s end, the Taft-Hartley Act (see June 23, 1947) will make the ban permanent. [Campaign Finance Timeline, 1999]

Entity Tags: Smith-Connally Act, Democratic Party, Congress of Industrial Organizations, John L. Lewis

Timeline Tags: Civil Liberties

The Taft-Hartley Act makes permanent the ban on contributions to federal candidates from unions (see June 25, 1943), corporations, and interstate banks (see 1925), and extends the regulations to cover primaries as well as general elections. It also requires union leaders to affirm that they are not supporters of the Communist Party. President Harry S. Truman unsuccessfully vetoed the bill when it was sent to his desk, and when Congress passes it over his veto, he echoes AFL-CIO leader John L. Lewis by denouncing the law as a “slave-labor bill.” Taft-Hartley declares the unions’ practice of “closed shops” illegal (employers agreeing with unions to hire only union members, and require employees to join the union), and permits unions to have chapters at a business only if approved by a majority of employees. The law also permits employers to refuse to bargain with unions if they choose. And, it grants the US attorney general the power to obtain an 80-day injunction if in his judgment a threatened or actual strike “imperil[s] the national health or safety.” [Federal Elections Commission, 1998; U-S History (.com), 2001; Center for Responsive Politics, 2002 pdf file; John Simkin, 2008]

Entity Tags: John L. Lewis, Harry S. Truman, Taft-Hartley Act

Timeline Tags: Civil Liberties

The massive Federal Election Campaign Act (FECA) is signed into law by President Nixon. (The law is commonly thought of in the context of 1971, when Congress passed it, but Nixon did not sign it into law for several months.) The law is sparked by a rising tide of anger among the public, frustrated by the Vietnam War and the variety of movements agitating for change. The campaign watchdog organization Common Cause sued both the Democratic and Republican National Committees for violating the Federal Corrupt Practices Act (FCPA—see 1925), and though it lost the suit, it exposed the flaws and limitations of the law to the public. Common Cause then led a push to improve campaign finance legislation, aided by the many newly elected and reform-minded members of Congress. FECA repeals the toothless FCPA and creates a comprehensive framework for the regulation of federal campaign financing, from primaries and runoffs to conventions and general elections. The law requires full and timely disclosure of donations and expenditures, and provides broad definitions of both. It sets limits on media advertising as well as on contributions from candidates and their family members. The law permits unions and corporations to solicit voluntary contributions from members, employees, and stockholders, and allows union and corporate treasury money to be used for operating expenses for political action committees (PACs) or for voter drives and the like. It bans patronage or the promise of patronage, and bans contracts between a candidate and any federal department or agency. It establishes strict caps on the amounts individuals can contribute to their own campaigns—$50,000 for presidential and vice-presidential candidates, $35,000 for Senate candidates, and $25,000 for House candidates. It establishes a cap on television advertising at 10 cents per voter in the last election, or $50,000, whichever is higher. [Campaign Finance Timeline, 1999; Center for Responsive Politics, 2002 pdf file; Federal Election Commission, 4/2008 pdf file] The difference before and after FECA is evident. Congressional campaign spending reportage from 1968 claimed only $8.5 million, while in 1972, Congressional campaign spending reports will soar to $88.9 million. [Federal Elections Commission, 1998]

Entity Tags: Richard M. Nixon, Federal Corrupt Practices Act, Federal Election Campaign Act of 1972, Common Cause

Timeline Tags: Civil Liberties

In the aftermath of the Watergate scandal (see August 8, 1974), amendments to the Federal Election Campaign Act (FECA—see February 7, 1972) provide the option for full public financing for presidential general elections, matching funds for presidential primaries, and public expenditures for presidential nominating conventions. The amendments also set spending limits on presidential primaries and general elections as well as for House and Senate primaries. The amendments give some enforcement provisions to previously enacted spending limits on House and Senate general elections. They set strict spending guidelines: for presidential campaigns, each candidate is limited to $10 million for primaries, $20 million for general elections, and $2 million for nominating conventions; Senatorial candidates are limited to $100,000 or eight cents per eligible voter, whichever is higher, for primaries, and higher limits of $150,000 or 12 cents per voter for general elections; House candidates are limited to $70,000 each for primaries and general elections. Loans are treated as contributions. The amendments create an individual contribution limit of $1,000 to a candidate per election and a PAC (political action committee) contribution limit of $5,000 to a candidate per election (this provision will trigger what the Center for Responsive Politics will call a “PAC boom” in the late 1970s). The total aggregate contributions from an individual are set at $25,000 per year. Candidates face further restrictions on how much personal wealth they can contribute to their own campaign. The 1940 ban on contributions from government employees and contract workers (see 1940) is repealed, as are the 1971 limitations on media spending. Perhaps most importantly, the amendments create the Federal Election Commission (FEC) to oversee and administer campaign law. (Before, enforcement and oversight responsibilities were spread among the Clerk of the House, the Secretary of the Senate, and the Comptroller General of the United States General Accounting Office (GAO), with the Justice Department responsible for prosecuting violators (see 1967).) The FEC is led by a board of six commissioners, with Congress appointing four of those commissioners and the president appointing two more. The Secretary of the Senate and the Clerk of the House are designated nonvoting, exofficio commissioners. [Federal Elections Commission, 1998; Campaign Finance Timeline, 1999; Center for Responsive Politics, 2002 pdf file] Part of the impetus behind the law is the public outrage over the revelations of how disgraced ex-President Nixon’s re-election campaign was funded, with millions of dollars in secret, illegal corporate contributions being funneled into the Nixon campaign. [Campaign Finance Timeline, 1999; Connecticut Network, 2006 pdf file]

Entity Tags: Center for Responsive Politics, Federal Election Campaign Act of 1972, Federal Election Commission, US Department of Justice

Timeline Tags: Civil Liberties

The Supreme Court case Buckley v. Valeo, filed by Senator James L. Buckley (R-NY) and former Senator Eugene McCarthy (D-WI) against the Secretary of the Senate, Francis R. Valeo, challenges the constitutionality of the Federal Election Campaign Act (FECA—see February 7, 1972 and 1974) on free-speech grounds. The suit also named the Federal Election Commission (FEC) as a defendant. A federal appeals court validated almost all of FECA, and the plaintiffs sent the case to the Supreme Court. The Court upholds the contribution limits set by FECA because those limits help to safeguard the integrity of elections. However, the court overrules the limits set on campaign expenditures, ruling: “It is clear that a primary effect of these expenditure limitations is to restrict the quantity of campaign speech by individuals, groups, and candidates. The restrictions… limit political expression at the core of our electoral process and of First Amendment freedoms.” One of the most important aspects of the Supreme Court’s ruling is that financial contributions to political campaigns can be considered expressions of free speech, thereby allowing individuals to essentially make unrestricted donations. The Court implies that expenditure limits on publicly funded candidates are allowable under the Constitution, because presidential candidates may disregard the limits by rejecting public financing (the Court will affirm this stance in a challenge brought by the Republican National Committee in 1980).
Provisions of 'Buckley' - The Court finds the following provisions constitutional:
bullet Limitations on contributions to candidates for federal office;
bullet Disclosure and record-keeping provisions; and
bullet The public financing of presidential elections.
However, the Court finds these provisions unconstitutional:
bullet Limitations on expenditures by candidates and their committees, except for presidential candidates who accept public funding;
bullet The $1,000 limitation on independent expenditures;
bullet The limitations on expenditures by candidates from their personal funds; and
bullet The method of appointing members of the FEC, holding that as the method stands, it violates the principle of separation of powers.
In May 1976, following the Court’s ruling, the FEC will reconstitute its board with six presidential appointees after Senate confirmation. [Federal Elections Commission, 3/1997; Federal Elections Commission, 1998; Campaign Finance Timeline, 1999; Center for Responsive Politics, 2002 pdf file; Casebriefs, 2012]
No Clear Authors - The opinion is labeled per curiam, a term usually reserved for brief and minor Court decisions when authorship of an opinion is less relevant. It is unclear exactly which Justices write the opinion. Most Court observers believe Justice William Brennan writes the bulk of the opinion, but Brennan’s biographers will later note that sections of the opinion are authored by Chief Justice Warren Burger and Justices Potter Stewart, Lewis Powell, and William Rehnquist. The opinion is an amalgamation of multiple authors, reflecting the several compromises made in the resolution of the decision. [New Yorker, 5/21/2012]
Criticism of 'Buckley' - Critics claim that the ruling enshrines the principle of “money equals speech.” The ruling also says that television and radio advertisements that do not expressly attack an individual candidate can be paid for with “unregulated” funds. This leads organizations to begin airing “attack ads” that masquerade as “issue ads,” ostensibly promoting or opposing a particular social or political issue and avoiding such words as “elect” or “defeat.” [National Public Radio, 2012] In 1999, law professor Burt Neuborne will write: “Buckley is like a rotten tree. Give it a good, hard push and, like a rotten tree, Buckley will keel over. The only question is in which direction.” Neuborne will write that his preference goes towards reasonable federal regulations of spending and contributions, but “any change would be welcome” in lieu of this decision, and even a completely deregulated system would be preferable to Buckley’s legal and intellectual incoherence. [New York Times, 5/3/2010] In 2011, law professor Richard Hasen will note that while the Buckley decision codifies the idea that contributions are a form of free speech, it also sets strict limitations on those contributions. Calling the decision “Solomonic,” Hasen will write that the Court “split the baby, upholding the contribution limits but striking down the independent spending limit as a violation of the First Amendment protections of free speech and association.” Hasen will reflect: “Buckley set the main parameters for judging the constitutionality of campaign finance restrictions for a generation. Contribution limits imposed only a marginal restriction on speech, because the most important thing about a contribution is the symbolic act of contributing, not the amount. Further, contribution limits could advance the government’s interest in preventing corruption or the appearance of corruption. The Court upheld Congress’ new contribution limits. It was a different story with spending limits, which the Court said were a direct restriction on speech going to the core of the First Amendment. Finding no evidence in the record then that independent spending could corrupt candidates, the Court applied a tough ‘strict scrutiny’ standard of review and struck down the limits.” [Slate, 10/25/2011] In 2012, reporter and author Jeffrey Toobin will call it “one of the Supreme Court’s most complicated, contradictory, incomprehensible (and longest) opinions.” [New Yorker, 5/21/2012]

Entity Tags: Federal Election Campaign Act of 1972, Federal Election Commission, James Buckley, Jeffrey Toobin, US Supreme Court, Eugene McCarthy, Lewis Powell, Potter Stewart, Burt Neuborne, William Rehnquist, Warren Burger, Richard L. Hasen, William Brennan

Timeline Tags: Civil Liberties

Amendments to the 1971 Federal Election Campaign Act (FECA—see February 7, 1972 and 1974) passed by Congress after the controversial Buckley ruling by the Supreme Court (see January 30, 1976) bring FECA into conformity with the Court’s decision. The amendments repeal expenditure limits except for presidential candidates who accept public funding, and revise the provisions governing the appointment of commissioners to the Federal Election Commission (FEC). The amendments also limit the scope of PAC fundraising by corporations and labor unions. The amendments limit individual contributions to national political parties to $20,000 per year, and individual contributions to a PAC to $5,000 per year. [Federal Elections Commission, 1998; Center for Responsive Politics, 2002 pdf file] However, the Constitution restricts what Congress can, or is willing, to do, and the amendments are relatively insignificant. [Campaign Finance Timeline, 1999]

Entity Tags: Federal Election Commission, Federal Election Campaign Act of 1972, US Supreme Court

Timeline Tags: Civil Liberties

Cato Institute logo.Cato Institute logo. [Source: Cato Institute]The billionaire Koch brothers, Charles and David, launch the libertarian Cato Institute, one of the first of many think tanks and advocacy organizations they will fund (see August 30, 2010). While records of the Koch funding of the institute are not fully available, the Center for Public Integrity learns that between 1986 and 1993 the Koch family gives $11 million to the institute. By 2010, Cato has over 100 full-time employees, and often succeeds in getting its experts and policy papers quoted by mainstream media figures. While the institute describes itself as nonpartisan, and is at times critical of both Republicans and Democrats, it consistently advocates for corporate tax cuts, reductions in social services, and laissez-faire environmental policies. One of its most successful advocacy projects is to oppose government initiatives to curb global warming. When asked why Cato opposes such federal and state initiatives, founder and president Ed Crane explains that “global warming theories give the government more control of the economy.” [New Yorker, 8/30/2010]

Entity Tags: Center for Public Integrity, Cato Institute, Ed Crane, Charles Koch, David Koch

Timeline Tags: Domestic Propaganda

Oil billionaire David Koch runs for vice president on the Libertarian Party ticket. David and his brother Charles are the primary backers of hard-right libertarian politics in the US (see August 30, 2010); Charles, the dominant brother, is determined to tear government “out at the root,” as he will later be characterized by libertarian Brian Doherty. The brothers have thrown their support behind Libertarian presidential candidate Ed Clark, who is running against Republican Ronald Reagan from the right of the political spectrum. The brothers are frustrated by the legal limits on campaign financing, and they persuade the party to place David on the ticket as vice president, thereby enabling him to spend as much of his personal fortune as he likes. The Libertarian’s presidential campaign slogan is, “The Libertarian Party has only one source of funds: You.” In reality, the Koch brothers’ expenditures of over $2 million is the campaign’s primary source of funding. Clark tells a reporter that the Libertarians are preparing to stage “a very big tea party” because people are “sick to death” of taxes. The Libertarian Party platform calls for the abolition of the FBI and the CIA, as well as of federal regulatory agencies, such as the Securities and Exchange Commission and the Department of Energy. The platform proposes the abolition of Social Security, minimum-wage laws, gun control, and all personal and corporate income taxes; in return, it proposes the legalization of prostitution, recreational drugs, and suicide. Government should be reduced to only one function, the party proclaims: the protection of individual rights. Conservative eminence William F. Buckley Jr. calls the movement “Anarcho-Totalitarianism.” The Clark-Koch ticket receives only one percent of the vote in the November 1980 elections, forcing the Koch brothers to realize that their brand of politics isn’t popular. In response, Charles Koch becomes openly scornful of conventional politics. “It tends to be a nasty, corrupting business,” he says. “I’m interested in advancing libertarian ideas.” Doherty will later write that both Kochs come to view elected politicians as merely “actors playing out a script.” Doherty will quote a longtime confidant of the Kochs as saying that after the 1980 elections, the brothers decide they will “supply the themes and words for the scripts.” In order to alter the direction of America, they had to “influence the areas where policy ideas percolate from: academia and think tanks.” [New Yorker, 8/30/2010]

Entity Tags: Libertarian Party, Brian Doherty, Charles Koch, Ronald Reagan, David Koch, William F. Buckley, Ed Clark

Timeline Tags: Domestic Propaganda

The federal government passes even more amendments to the 1971 Federal Election Campaign Act (FECA—see February 7, 1972, 1974, and May 11, 1976). The new amendments simplify campaign finance reporting requirements, encourage political party activity at the state and local levels, and increase the public funding grants for presidential nominating conventions. The new amendments prohibit the Federal Election Commission (FEC) from conducting random campaign audits. They also allow state and local parties to spend unlimited amounts on federal campaign efforts, including the production and distribution of campaign materials such as signs and bumper stickers used in “get out the vote” (GOTV) efforts. [Federal Elections Commission, 1998; Center for Responsive Politics, 2002 pdf file] The amendment creates what later becomes known as “soft money,” or donations and contributions that are essentially unregulated as long as they ostensibly go for “party building” expenses. The amendments allow corporations, labor unions, and wealthy individuals to contribute vast sums to political parties and influence elections. By 1988, both the Republican and Democratic Parties will spend inordinate and controversial amounts of “soft money” in election efforts. [National Public Radio, 2012] While the amendments were envisioned as strengthening campaign finance law, many feel that in hindsight, the amendments actually weaken FECA and campaign finance regulation. Specifically, the amendments reverse much of the 1974 amendments, and allow money once prohibited from being spent on campaigns to flow again. [Campaign Finance Timeline, 1999]

Entity Tags: Federal Election Commission, Federal Election Campaign Act of 1972

Timeline Tags: Civil Liberties

KochPAC logo.KochPAC logo. [Source: KochPAC (.com)]After their stinging loss during the November 1980 presidential campaign, the billionaire Koch brothers, Charles and David, decide that they need to work to inculcate their brand of hard-right libertarianism into the electorate through indirect means (see 1979-1980). Therefore, they begin spending vast amounts of their personal fortunes on what purport to be independent think tanks and other political or ideological organizations. At the same time, the brothers become political recluses, rarely speaking in public and rarely acknowledging the breadth or the direction of their donations. It is hard to know exactly how much the Kochs spend and where they spend it, though public records give some of the picture. Between 1998 and 2008, Charles Koch’s foundation spends over $48 million on political funding. The Claude R. Lambe Charitable Foundation, controlled by Charles and his wife, spends over $28 million. David Koch’s foundation spends over $120 million. Koch Industries, controlled primarily by Charles, spends over $50 million on lobbying efforts. Their political action committee, KochPAC, donates around $8 million, almost all of it going to Republicans. In 2010, as in other years, Koch Industries leads all other energy companies in political donations. The brothers spend over $2 million of their personal fortunes on political donations, almost all of it going to Republicans. Ari Rabin-Havt of the progressive media watchdog organization Media Matters will say that the Kochs’ effort is unusual in its marshalling of corporate and personal funds: “Their role, in terms of financial commitments, is staggering.” Lee Fang, writing for the liberal blog ThinkProgress (an arm of the Center for American Progress), calls the Kochs “the billionaires behind the hate.” Some believe that the Kochs have either skirted, or outright broken, laws controlling tax-exempt giving. Charitable foundations must conduct exclusively nonpartisan activities that promote the public welfare. But in 2004, a report by the National Committee for Responsive Philanthropy, a watchdog group, describes the Kochs’ foundations as being self-serving, and concludes, “These foundations give money to nonprofit organizations that do research and advocacy on issues that impact the profit margin of Koch Industries.” The Kochs also use their charitable foundations to fund hard-right political organizations that, according to reporter Jane Mayer, “aim to push the country in a libertarian direction,” including: the Institute for Justice, which files lawsuits opposing state and federal regulations; the Institute for Humane Studies, which underwrites libertarian academics; and the Bill of Rights Institute, which promotes a conservative interpretation of the Constitution. David Koch acknowledges that the family exerts tight ideological control. “If we’re going to give a lot of money, we’ll make darn sure they spend it in a way that goes along with our intent,” he tells a reporter. “And if they make a wrong turn and start doing things we don’t agree with, we withdraw funding.” [New Yorker, 8/30/2010]

Entity Tags: Institute for Justice, Charles Koch, Bill of Rights Institute, Ari Rabin-Havt, Claude R. Lambe Charitable Foundation, Institute for Humane Studies, Koch Industries, National Committee for Responsive Philanthropy, Jane Mayer, David Koch, Lee Fang, KochPAC

Timeline Tags: Domestic Propaganda

Citizens for a Sound Economy logo.Citizens for a Sound Economy logo. [Source: Greater Houston Pachyderm Club]The billionaire Koch brothers, Charles and David, launch the first of a number of “citizen advocacy” groups they either found or fund, Citizens for a Sound Economy. The Kochs are staunch right-wing libertarians determined to successfully combat government regulation and oversight of businesses, government taxation, and government funding of social programs (see August 30, 2010). Between 1986 and 1993, the brothers will provide $7.9 million to the group, even as it promotes itself as a “grassroots,” “citizen-driven” organization. (Such organizations that call themselves “citizen-based” while actually being founded, operated, and funded by corporate interests are called “astroturf” organizations.) Matt Kibbe, who will go on to head a Koch-funded lobbying organization, FreedomWorks, will later say of Citizens for a Sound Economy that its driving force was to take the Kochs’ “heavy ideas and translate them for mass America.… We read the same literature Obama did about nonviolent revolutions—Saul Alinsky, Gandhi, Martin Luther King. We studied the idea of the Boston Tea Party as an example of nonviolent social change. We learned we needed boots on the ground to sell ideas, not candidates.” One organization participant will say that the brothers are “very controlling, very top down. You can’t build an organization with them. They run it.” By 1993, the organization will become powerful enough to successfully thwart the Clinton administration’s efforts to place a “BTU tax” on energy, and mounts successful “citizen protests” against Democrats, sometimes funnelling millions of Koch monies into the political campaigns of their Republican opponents. [New Yorker, 8/30/2010]

Entity Tags: Clinton administration, Charles Koch, David Koch, Citizens for a Sound Economy, Matt Kibbe, FreedomWorks

Timeline Tags: Domestic Propaganda

The Supreme Court, in the case of Federal Election Commission v. NCPAC, rules that political action committees (PACs) can spend more than the $1,000 mandated by federal law (see February 7, 1972, 1974, and May 11, 1976). The Democratic Party and the FEC argued that large expenditures by the National Conservative Political Action Committee (NCPAC) in 1975 violated the Federal Election Campaign Act (FECA), which caps spending by independent political action committees in support of a publicly funded presidential candidate at $1,000. The Court rules 7-2 in favor of NCPAC, finding that the relevant section of FECA encroaches on the organization’s right to free speech (see January 30, 1976). Justice William Rehnquist writes the majority opinion, joined by fellow conservatives Chief Justice Warren Burger, Sandra Day O’Connor, and Lewis Powell, and liberals Harry Blackmun, John Paul Stevens, and William Brennan. Justices Byron White and Thurgood Marshall dissent from the majority. [Oyez (.org), 2012; Moneyocracy, 2/2012]

Entity Tags: Federal Election Commission, William Brennan, William Rehnquist, Byron White, Federal Election Campaign Act of 1972, US Supreme Court, Warren Burger, Sandra Day O’Connor, Harry Blackmun, John Paul Stevens, Thurgood Marshall, National Conservative Political Action Committee, Democratic Party, Lewis Powell

Timeline Tags: Civil Liberties

The Supreme Court rules in Federal Election Commission v. Massachusetts Citizens for Life that an anti-abortion organization can print flyers promoting “pro-life” candidates in the weeks before an election, and that the portion of the Federal Election Campaign Act (FECA—see February 7, 1972, 1974, and May 11, 1976) that bars distribution of such materials to the general public restricts free speech. In September 1978, the Massachusetts Citizens For Life (MCFL) spent almost $10,000 printing flyers captioned “Everything You Need to Vote Pro-Life,” which included information about specific federal and state candidates’ positions on abortion rights, along with exhortations to “vote pro-life” and “No pro-life candidate can win in November without your vote in September.” The Federal Election Commission (FEC) ruled that MCFL’s expenditures violated FECA’s ban on corporate spending in connection with federal elections. A Massachusetts district court ruled against the FEC, finding that the flyer distribution “was uninvited by any candidate and uncoordinated with any campaign” and the flyers fell under the “newspaper exemption” of the law. Moreover, the court found, FECA’s restrictions infringed on MCFL’s freedom of speech (see January 30, 1976 and April 26, 1978). An appeals court reversed much of the district court’s decision, but agreed that the named provision of FECA violated MCFL’s free speech rights. The FEC appealed to the Supreme Court. By a 5-4 vote, the Court affirms that FECA’s prohibition on corporate expenditures is unconstitutional as applied to independent expenditures made by a narrowly defined type of nonprofit corporation such as MCFL. The Court writes that few organizations will be impacted by its decision. The majority opinion is written by Justice William Brennan, a Court liberal, and joined by liberal Thurgood Marshall and conservatives Lewis Powell, Antonin Scalia, and (in part) by Sandra Day O’Connor. Court conservatives William Rehnquist and Byron White, joined by liberals Harry Blackmun and John Paul Stevens, dissent with the majority, saying that the majority ruling gives “a vague and barely adumbrated exception [to the law] certain to result in confusion and costly litigation.” [Federal Election Commission, 2011; Moneyocracy, 2/2012]

Entity Tags: Federal Election Commission, William Rehnquist, Antonin Scalia, Federal Election Campaign Act of 1972, US Supreme Court, William Brennan, Sandra Day O’Connor, Harry Blackmun, John Paul Stevens, Thurgood Marshall, Massachusetts Citizens for Life, Byron White, Lewis Powell

Timeline Tags: Civil Liberties

The Senate launches an investigation into what a minority (Democratic) report calls “an audacious plan to pour millions of dollars in contributions into Republican campaigns nationwide without disclosing the amount or source” in order to evade campaign finance laws. A shell corporation, Triad Management, is found to have paid more than $3 million for attack ads in 26 House races and three Senate races. More than half of the advertising money came from an obscure nonprofit group, the Economic Education Trust. The Senate minority report finds that “the trust was financed in whole or in part by Charles and David Koch of Wichita, Kansas” (see August 30, 2010). Many in the investigation believe that the Koch brothers paid for the attack ads, most of which aired in states where Koch Industries does business. The brothers refuse to confirm or deny their involvement to reporters. In 1998, the Wall Street Journal will confirm that a consultant on the Kochs’ payroll had been involved in the scheme. Charles Lewis of the Center for Public Integrity will describe the scandal as “historic,” explaining: “Triad was the first time a major corporation used a cutout (a front operation) in a threatening way. Koch Industries was the poster child of a company run amok.” [New Yorker, 8/30/2010]

Entity Tags: Charles Lewis, Charles Koch, Triad Management, David Koch, Economic Education Trust

Timeline Tags: Civil Liberties, Domestic Propaganda, Elections Before 2000

A number of political action committees, or PACs (see 1944, February 7, 1972, 1975, and November 28, 1984), created by “independent” organizations inform the Federal Election Commission (FEC) that they will not disclose the names of donors or amounts of funds raised, because they are not expressly advocating for or against any individual candidate. These PACs become known as “527 groups,” based on Section 527 of the federal tax code. Congress soon passes a disclosure mandate forcing PACs to reveal their donors and information about their fundraising and expenditures (see June 30, 2000). By 2005, many PACs begin registering themselves as 501(c)4 “advocacy nonprofit” organizations. Under the law, such groups can only conduct certain “political advocacy” activities, but in return do not have to disclose their contributors or information about their financing. [National Public Radio, 2012]

Entity Tags: US Congress, Federal Election Commission

Timeline Tags: Civil Liberties

Sam Wyly.Sam Wyly. [Source: Forbes]A group called “Republicans for Clean Air” begins running ads attacking Republican presidential candidate John McCain in New York. The ads accuse McCain of voting against alternative energy sources. At the same time, ads paid for by the campaign of Republican presidential candidate George W. Bush accuse McCain of labeling breast cancer programs as wasteful. Governor George Pataki (R-NY) accuses McCain of voting “anti-New York” in the Senate, while Representative John Sweeney (R-NY) says McCain was wrong to vote for raising heating oil taxes, a major issue in cold-weather states such as New York. [Salon, 3/2/2000] The group also runs ads in primary states claiming that Bush, as Texas governor, passed laws intended to reduce air pollution in Texas by over a quarter-million tons a year. The evidence does not support the claim; what few anti-pollution laws have taken effect in Texas were written mostly by Democratic state legislators and signed into law, often reluctantly, by Bush.
RFCA Consists of Two Texas Billionaires - An investigation by the New York Times soon proves that “Republicans for Clean Air” (RFCA) is funded by Dallas billionaire Sam Wyly, a Bush supporter, who has contributed $2.5 million to the group. Wyly and his brother Charles Wyly, also a RFCA contributor, are the co-founders of Sterling Software in Dallas. They are also owners, founders, or executives in firms that own Bonanza Steakhouse, the “Michael’s” chain of arts and craft stores, the hedge fund Maverick Capital, and more. Both are heavy Bush campaign donors, having donated over $210,000 to the Bush gubernatorial campaigns. They are apparently the only two members of the RFCA. Craig McDonald of Texans for Public Justice says of Sam Wyly: “He’s one of the elite. He’s one of the movers and shakers. He’s very big money in the state.” McCain’s campaign accuses the Bush campaign of being responsible for the advertising, and says the Bush campaign is trying to evade campaign finance laws (see February 7, 1972 and May 11, 1992). The McCain campaign complains that the Bush campaign is using unethical and possibly illegal campaign tactics to “steal” the primary election by saturating New York, California, and Ohio with anti-McCain ads just days before the primary elections in those critical states. “There is no question in our campaign’s mind that the ads are being sponsored, coordinated, and managed by the George Bush for President campaign,” says McCain’s campaign manager Rick Davis. “I think it’s incumbent on the Bush campaign to prove somehow that they are not involved in this incredible act.” Davis has no direct evidence for his claim, but cites what the Times calls “a tangle of personal, business, and political relationships between Mr. Wyly and his family and the Bush campaign to suggest that their interests were so close as to be indistinguishable.” One of those relationships cited by Davis is the fact that RFCA uses the same public relations firm, Multi Media Services Corporation, as Pataki, who chairs the Bush campaign in New York and who appears in Bush campaign ads. Bush himself denies any connection with RFCA, and says: “There is no coordination.… I had no idea the ad was going to run.” Wyly also disclaims any coordination with the Bush campaign. He says he laughed during the production of the commercials, and mused over how “surprised” the Bush campaign would be to see them on the airwaves. McCain uses the ads to draw attention to one of his favorite campaign themes, campaign finance reform. On a recent morning talk show, McCain said: “I think maybe the Bush campaign is out of money and somebody’s putting in $2 million to try to hijack the campaign here in New York. Nobody knows where it came from. [When McCain filmed the interview, Wyly’s identity had not been revealed.] We’ll probably find out, but probably too late. This is why campaign finance reform is so important.” [New York Times, 3/3/2000; New York Times, 3/4/2000; New York Times, 3/5/2000; San Jose Mercury News, 3/6/2000; Scott E. Thomas and Danny Lee McDonald, 4/2002; New York Times, 8/23/2010] The press soon learns that Charles Wyly is an official member of the Bush presidential campaign, as a “Pioneer” donor, and has contributed the maximum amount under the law. [New York Times, 3/4/2000] It also learns that RFCA’s stated address is a post office box in Virginia belonging to Lydia Meuret, a consultant who runs a political action committee headed by Representative Henry Bonilla (R-TX), a Bush ally. Meuret denies any connection between RFCA and Bonilla or Bonilla’s PAC, but admits she is a consultant to both. [New York Times, 3/3/2000]
'527' Group Operates in Campaign Finance Law 'Gray Areas' - RFCA is a “527” group (see 2000 - 2005); such groups operate in a “gray area” of campaign law, as the monies they use are not contributed directly to a candidate or a political party. However, they are banned from coordinating their efforts with candidate campaigns. Their ads must not make direct appeals to voters in support of, or opposition to, a particular candidate. If they comply with this portion of the law, the donors behind the ads, and the amounts they contribute, do not have to be identified. The law does not even require the groups to declare their existence, as was the case for a time with RFCA. The Times reports, “While some of the groups behind issue advertising are vague about their membership, Mr. Wyly’s effort was a rare instance in which commercials were aired without any hint of their origin.” Fred Wertheimer of Democracy 21, a group advocating campaign finance reform, says of so-called “issue” ads such as these: “The secrecy aspects of this are taking campaign finance problems to yet another new and dangerous level. What we’re seeing here is the use of unlimited, undisclosed money to influence a federal election, and that’s totally at odds with the whole notion of campaign finance disclosure.” [New York Times, 3/3/2000; San Jose Mercury News, 3/6/2000; New York Times, 3/29/2000; New York Times, 8/23/2010] Progressive columnist Molly Ivins calls the RFCA ads examples of “sham issue” advertisements. [San Jose Mercury News, 3/6/2000]
Bush Claims RFCA Ads Not Helpful - After Bush secures the nomination over McCain, he tells a reporter, “I don’t think these [Republicans for Clean Air] ads are particularly helpful to me.” But Slate reporter Chris Suellentrop writes: “Of course they were helpful. Otherwise Bush would have called the group and told them to call off the dogs.” [Slate, 8/25/2000]
Wyly Brothers Will Fund 2004 'Swift Boat' Campaign, Later Charged with Securities Fraud, Insider Trading - A month after the ads air, Sam Wyly says he will no longer involve himself in politics. Wyly, who says he is a staunch environmentalist, says he admires Bush’s Democratic challenger, Vice President Al Gore (whom Wyly has called a regulation-happy environmentalist, and whom Wyly has considered attacking with television ads). Of his foray into the presidential campaign, Wyly says: “I learned from it. Many of you are aware of my recent foray into presidential politics. It is to be my last.” In 2004, the Wyly brothers will be two of the primary donors behind the “Swift Boat” campaign that will slander and impugn the character and military service of presidential candidate John Kerry (D-MA). In 2010, the Wyly brothers will be charged with securities fraud and insider trading that netted them at least $581 million in illegal gains, according to the Securities and Exchange Commission. [New York Times, 4/5/2000; New York Times, 8/23/2010]

Entity Tags: George W. Bush presidential campaign 2000, Charles Wyly, Sam Wyly, George E. Pataki, Fred Wertheimer, George W. Bush, Chris Suellentrop, Rick Davis, Albert Arnold (“Al”) Gore, Jr., New York Times, John McCain, John Kerry, John E. Sweeney, John McCain presidential campaign 2000, Henry Bonilla, Lydia Meuret, Molly Ivins, Republicans for Clean Air

Timeline Tags: 2000 Elections, Civil Liberties

The Senate approves bipartisan legislation, the so-called “Stealth PAC” bill, that requires secretive tax-exempt organizations that raise and spend money on political activities to reveal their donors and expenditures. The so-called “527” organizations have flourished because until now, Section 527 of the Internal Revenue Code has protected both their nonprofit status and their right to keep their donors and funding information secret (see 2000 - 2005). President Clinton will sign the bill into law. It is the first major legislative change in American campaign finance law in two decades (see January 8, 1980). Under the new law, Section 527 organizations raising over $25,000 a year must comply with federal campaign law, file tax returns, disclose the identities of anyone contributing over $200, and report expenditures in excess of $500. That information will be reported to the IRS every three months during an election year, and the information will be posted on the Internet. The bill takes effect as soon as Clinton signs it into law.
Passed Despite Republican Opposition - The House passed the bill on a 385-39 vote; only six Senate Republicans vote against the bill. Senate and House Republican leaders have blocked the bill for months. Clinton says, “Passage of this bill proves that public interest can triumph over special interests,” and urges Congress to pass a more comprehensive overhaul of campaign finance law. Senator Russ Feingold (D-WI) says, “I’m not pretending we don’t have other loopholes to close, but those groups that have found this an easy, painless way to go on the attack are now going to have to scramble to figure out different ways.” Some ways that groups will avoid the requirements of the new law are to reorganize themselves as for-profit organizations—thus losing their tax exemptions—or trying to reorganize as other types of nonprofits. Many expect donors to rush big contributions to these 527 groups before the new law takes effect. Mike Castle (R-DE), a House Republican who supports the bill, says, “I am sure that the phones are ringing over on K Street right now about how to get money into the 527s before they are eliminated.” Senator Mitch McConnell (R-KY), who helped Senate Republicans block the bill and who voted no on its passage, now calls it a “relatively benign bill,” downplaying his stiff opposition to the bill and to campaign finance regulation in general. McConnell advised Republicans up for re-election in November 2000 to vote yes for the bill “to insulate them against absurd charges that they are in favor of secret campaign contributions or Chinese money or Mafia money.” McConnell explains that he voted against the bill because it infringes on freedom of speech (see December 15, 1986). Governor George W. Bush (R-TX), the GOP’s presidential candidate, issues a statement supporting the bill: “As I have previously stated, I believe these third-party groups should have to disclose who is funding their ads. As the only candidate to fully disclose contributors on a daily basis, I have always been a strong believer in sunshine and full disclosure.” Bush defeated Republican challenger John McCain (R-AZ) in part because of the efforts of Republicans for Clean Air, a 527 group headed by Bush financier Sam Wyly and which spent $2.5 million attacking McCain’s environmental record (see March 2000 and After). McCain helped push the current bill through the Senate, and says: “This bill will not solve what is wrong with our campaign finance system. But it will give the public information regarding one especially pernicious weapon used in modern campaigns.”
527s Used by Both Parties - Both Democrats and Republicans have created and used 527 groups, which are free from federal oversight as long as they do not advocate for or against a specific candidate. The organizations use donations for polling, advertising, telephone banks, and direct-mail appeals, but are not subject to federal filing or reporting rules as long as they do not advocate the election or defeat of a specific candidate. Some groups, such as the Republican Majority Issues Committee, a 527 organization aligned with House Majority Leader Tom DeLay (R-TX), intend to continue functioning as usual even after the bill is signed into law, while they examine their legal options. The committee head, Karl Gallant, says his organization will “continue on our core mission to give conservative voters a voice in the upcoming elections.” The Republican Majority Issues Committee is considered DeLay’s personal PAC, or political action committee; it is expected to funnel as much as $25 million into closely contested races between now and Election Day. Gallant says the organization will comply with the new law, but complains, “We are deeply concerned that Congress has placed the regulation of free speech in the hands of the tax collectors.” He then says: “We’re not going anywhere. You will have RMIC to amuse and delight you throughout the election cycle.” The Sierra Club’s own 527 organization, the Environmental Voter Education Campaign, says it will also comply “eagerly” with the new law, and will spend some $8 million supporting candidates who match the Sierra Club’s pro-environmental stance. “We will eagerly comply with the new law as soon as it takes effect,” says the Sierra Club’s Dan Weiss. “But it’s important to note that while we strongly support the passage of this reform, 527 money is just the tip of the soft-money iceberg. Real reform would mean banning all soft-money contributions to political parties.” Another 527 group affected by the new law is Citizens for Better Medicare, which has already spent $30 million supporting Republican candidates who oppose a government-run prescription drug benefit. Spokesman Dan Zielinski says the group may change or abandon its 527 status in light of the new law. “The coalition is not going away,” he says. “We will comply with whatever legal requirements are necessary. We’ll do whatever the lawyers say we have to do.” A much smaller 527, the Peace Voter Fund, a remnant of the peace movement of the 1970s and 80s, says it intends to engage in voter education and issue advocacy in about a dozen Congressional races. Executive director Van Gosse says the group will follow the new law and continue as before: “Disclosure of donors is not a major issue for us. So we’ll just say to donors in the future that they will be subject to federal disclosure requirements. It’s no biggie.” [New York Times, 6/30/2000; OMB Watch, 4/1/2002; Huffington Post, 9/28/2010]

Entity Tags: Karl Gallant, John McCain, Environmental Voter Education Campaign, Dan Zielinski, Dan Weiss, Citizens for Better Medicare, Van Gosse, US Senate, William Jefferson (“Bill”) Clinton, George W. Bush, Republican Majority Issues Committee, Republicans for Clean Air, Peace Voter Fund, Mike Castle, Mitch McConnell, Tom DeLay, Sierra Club, Sam Wyly, Russell D. Feingold

Timeline Tags: Civil Liberties

After years of battling Republican filibuster efforts and other Congressional impediments, the Bipartisan Campaign Reform Act of 2002 is signed into law. Dubbed the “McCain-Feingold Act” after its two Senate sponsors, John McCain (R-AZ) and Russ Feingold (D-WI), when the law takes effect after the 2002 midterm elections, national political parties will no longer be allowed to raise so-called “soft money” (unregulated contributions) from wealthy donors. The legislation also raises “hard money” (federal money) limits, and tries, with limited success, to eliminate so-called “issue advertising,” where organizations not directly affiliated with a candidate run “issues ads” that promote or attack specific candidates. The act defines political advertising as “electioneering communication,” and prohibits advertising paid for by corporations or by an “unincorporated entity” funded by corporations or labor unions (with exceptions—see June 25, 2007). To a lesser extent, the BCRA also applies to state elections. In large part, it supplants the Federal Election Campaign Act (FECA—see February 7, 1972, 1974, May 11, 1976, and January 8, 1980). [Federal Election Commission, 2002; Center for Responsive Politics, 2002 pdf file; Connecticut Network, 2006 pdf file]
Bush: Bill 'Far from Perfect' - Calling the bill “far from perfect,” President Bush signs it into law, taking credit for the bill’s restrictions on “soft money,” which the White House and Congressional Republicans had long opposed. Bush says: “This legislation is the culmination of more than six years of debate among a vast array of legislators, citizens, and groups. Accordingly, it does not represent the full ideals of any one point of view. But it does represent progress in this often-contentious area of public policy debate. Taken as a whole, this bill improves the current system of financing for federal campaigns, and therefore I have signed it into law.” [Center for Responsive Politics, 2002 pdf file; White House, 3/27/2002]
'Soft Money' Ban - The ban on so-called “soft money,” or “nonfederal contributions,” affects contributions given to political parties for purposes other than supporting specific candidates for federal office (“hard money”). In theory, soft money contributions can be used for purposes such as party building, voter outreach, and other activities. Corporations and labor unions are prohibited from giving money directly to candidates for federal office, but they can give soft money to parties. Via legal loopholes and other, sometimes questionable, methodologies, soft money contributions can be used for television ads in support of (or opposition to) a candidate, making the two kinds of monies almost indistinguishable. The BCRA bans soft money contributions to political parties. National parties are prohibited from soliciting, receiving, directing, transferring, and spending soft money. State and local parties can no longer spend soft money for any advertisements or other voter communications that identify a candidate for federal office and either promote or attack that candidate. Federal officeholders and candidates cannot solicit, receive, direct, transfer, or spend soft money in connection with any election. State officeholders and candidates cannot spend soft money on any sort of communication that identifies a candidate for federal office and either promotes or attacks that candidate. [Legal Information Institute, 12/2003; ThisNation, 2012]
Defining 'Issue Advertisements' or 'Electioneering Communications' - In a subject related to the soft money section, the BCRA addresses so-called “issue advertisements” sponsored by outside, third-party organizations and individuals—in other words, ads by people or organizations who are not candidates or campaign organizations. The BCRA defines an “issue ad,” or as the legislation calls it, “electioneering communication,” as one that is disseminated by cable, broadcast, or satellite; refers to a candidate for federal office; is disseminated in a particular time period before an election; and is targeted towards a relevant electorate with the exception of presidential or vice-presidential ads. The legislation anticipates that this definition might be overturned by a court, and provides the following “backup” definition: any broadcast, cable, or satellite communication which promotes or supports a candidate for that office, or attacks or opposes a candidate for that office (regardless of whether the communication expressly advocates a vote for or against a candidate).
Corporation and Labor Union Restrictions - The BCRA prohibits corporations and labor unions from using monies from their general treasuries for political communications. If these organizations wish to participate in a political process, they can form a PAC and allocate specific funds to that group. PAC expenditures are not limited.
Nonprofit Corporations - The BCRA provides an exception to the above for “nonprofit corporations,” allowing them to fund electioneering activities and communications from their general treasuries. These nonprofits are subject to disclosure requirements, and may not receive donations from corporations or labor unions.
Disclosure and Coordination Restrictions - This part of the BCRA amends the sections of FECA that addresses disclosure and “coordinated expenditure” issues—the idea that “independent” organizations such as PACs could coordinate their electioneering communications with those of the campaign it supports. It includes the so-called “millionaire provisions” that allow candidates to raise funds through increased contribution limits if their opponent’s self-financed personal campaign contributions exceed a certain amount.
Broadcast Restrictions - The BCRA establishes requirements for television broadcasts. All political advertisements must identify their sponsor. It also modifies an earlier law requiring broadcast stations to sell airtime at its lowest prices. Broadcast licensees must collect and disclose records of purchases made for the purpose of political advertisements.
Increased Contribution Limits - The BCRA increases contribution limits. It also bans contributions from minors, with the idea that parents would use their children as unwitting and unlawful conduits to avoid contribution limits.
Lawsuits Challenge Constitutionality - The same day that Bush signs the law into effect, Senator Mitch McConnell (R-KY) and the National Rifle Association (NRA) file lawsuits challenging the constitutionality of the BCRA (see December 10, 2003). [Legal Information Institute, 12/2003]

Entity Tags: Russell D. Feingold, Mitch McConnell, John McCain, National Rifle Association, George W. Bush, Bipartisan Campaign Reform Act of 2002

Timeline Tags: Civil Liberties

The Supreme Court rules in the case of McConnell v. Federal Election Commission. The case addresses limitations on so-called “soft money,” or contributions to a political party not designated specifically for supporting a single candidate, that were imposed by the Bipartisan Campaign Reform Act of 2002 (BCRA), often known as the McCain-Feingold law after its two Senate sponsors (see March 27, 2002). A three-judge panel has already struck down some of McCain-Feingold’s restrictions on soft-money donations, a ruling that was stayed until the Court could weigh in. Generally, the Court rules that the “soft money” ban does not exceed Congress’s authority to regulate elections, and does not violate the First Amendment’s free speech clause. The ruling is a 5-4 split, with the majority opinion written by liberal Justice John Paul Stevens and his conservative colleague Sandra Day O’Connor. The opinion finds that the “minimal” restrictions on free speech are outweighed by the government’s interest in preventing “both the actual corruption threatened by large financial contributions and… the appearance of corruption” that might result from those contributions. “Money, like water, will always find an outlet,” the justices write, and the government must take steps to prevent corporate donors from finding ways to subvert the contribution limits. The majority is joined by liberal justices Stephen Breyer, Ruth Bader Ginsburg, and David Souter, and the four other conservatives on the court—Anthony Kennedy, William Rehnquist, Antonin Scalia, and Clarence Thomas—dissent. [Legal Information Institute, 12/2003; Oyez (.org), 2011] The case represents the consolidation of 11 separate lawsuits brought by members of Congress, political parties, unions, and advocacy groups; it is named for Senator Mitch McConnell, who sued the FEC on March 27, 2002, the same day the bill was signed into law. Due to the legal controversy expected to be generated by the law and the need to settle it prior to the next federal election, a provision was included in the BCRA that provided for the case to be heard first by a special three-judge panel and then appealed directly to the Supreme Court. This District of Columbia district court panel, comprised of two district court judges and one circuit court judge, was inundated with numerous amicus briefs, almost 1,700 pages of related briefs, and over 100,000 pages of witness testimony. The panel upheld the BCRA’s near-absolute ban on the usage of soft money in federal elections, and the Supreme Court agrees with that finding. However, the Court reverses some of the BCRA’s limitations on the usage of soft money for “generic party activities” such as voter registration and voter identification. The district court overturned the BCRA’s primary definition of “noncandidate expenditures,” but upheld the “backup” definition as provided by the law. Both courts allow the restrictions on corporate and union donations to stand, as well as the exception for nonprofit corporations. The Court upholds much of the BCRA’s provisions on disclosure and coordinated expenditures. The lower court rejected the so-called “millionaire provisions,” a rejection the Supreme Court upholds. A provision banning contributions by minors was overturned by the lower court, and the Court concurs. The lower court found the provision requiring broadcasters to collect and disclose records of broadcast time purchased for political activities unconstitutional, but the Court disagrees and reinstates the requirement. [Legal Information Institute, 12/2003] McConnell had asked lawyer James Bopp Jr., a veteran of anti-campaign finance lawsuits and the head of McConnell’s James Madison Center for Free Speech, to take part in the legal efforts of the McConnell case. However, before the case appeared before the Supreme Court, McConnell dropped Bopp from the legal team due to a dispute over tactics. [New York Times, 1/25/2010] The 2010 Citizens United decision will partially overturn McConnell (see January 21, 2010).

Entity Tags: Federal Election Commission, David Souter, Bipartisan Campaign Reform Act of 2002, Antonin Scalia, Anthony Kennedy, William Rehnquist, US Supreme Court, Stephen Breyer, Sandra Day O’Connor, National Rifle Association, Mitch McConnell, John Paul Stevens, Ruth Bader Ginsburg, James Bopp, Jr, Clarence Thomas

Timeline Tags: Civil Liberties

Peter Lewis of Progressive Insurance.Peter Lewis of Progressive Insurance. [Source: Forbes]Billionaire George Soros, a frequent contributor to Democratic and liberal causes, gives $23.7 million to a number of “527s,” politically active groups that operate independently of particular campaigns or candidates (see 2000 - 2005, March 2000 and After, and June 30, 2000). Peter Lewis, the CEO of Progressive Insurance, gives almost that much, with donations totaling $23.247 million. Their donations include:
bullet $16 million (Lewis) and $12,050,000 (Soros) to the Joint Victory Campaign 2004, an “umbrella” fundraising entity that distributes funds to two other major groups, America Coming Together (ACT) and The Media Fund.
bullet $7,500,000 (Soros) and $2,995,000 (Lewis) to America Coming Together.
bullet $2,500,000 (Soros) and $2,500,000 (Lewis) to MoveOn.org.
bullet $650,000 (Lewis) and $325,000 (Soros) to the Young Democrats of America.
bullet $485,000 (Lewis) to the Marijuana Policy Project.
bullet $325,000 (Soros) to Democrats 2000.
bullet $300,000 (Soros) to the Real Economy Group.
bullet $300,000 (Soros) to the Campaign for America’s Future.
bullet $250,000 (Soros) and $250,000 (Lewis) to Democracy for America.
bullet $250,000 (Soros) to Safer Together 04.
bullet $117,220 (Lewis) to Stonewall Democrats United.
bullet $100,000 (Lewis) to the Gay and Lesbian Victory Fund.
bullet $100,000 (Lewis) to the Sierra Club.
bullet $50,000 (Lewis) to PunkVoter.Inc. [Center for Responsive Politics, 2012; Discover the Secrets, 2012; Center for Responsive Politics, 6/11/2012; Center for Responsive Politics, 6/11/2012]

Entity Tags: George Soros, America Coming Together, Young Democrats of America, Democrats 2000, Democracy for America, Gay and Lesbian Victory Fund, Campaign for America’s Future, Stonewall Democrats United, The Media Fund, MoveOn (.org), Marijuana Policy Project, Sierra Club, Peter Lewis, Safer Together 04, PunkVoter.Inc., Joint Victory Campaign, Real Economy Group

Timeline Tags: Civil Liberties, 2004 Elections

Americans for Prosperity logo.Americans for Prosperity logo. [Source: Americans for Prosperity]After the 2004 presidential election, the “astroturf” organization Citizens for a Sound Economy (see Late 2004) splits due to internal dissension. Oil billionaire David Koch and Koch Industries lobbyist Richard Fink (see August 30, 2010) launch a new “astroturf” organization, Americans for Prosperity (AFP—see May 29, 2009)). They hire Tim Phillips to run the organization. Phillips (see August 6, 2009) is a veteran political operative who worked closely with Republican operative Ralph Reed; the two co-founded the political consulting firm Century Strategies. Phillips’s online biography will describe him as an expert in “grasstops” and “grassroots” political organizing. Conservative operative Grover Norquist will call Phillips “a grownup who can make things happen.” In 2009, Phillips will claim that AFP has “only” 800,000 members, but its Web site will claim “1.2 million activists.” A former employee of the Cato Institute, a Koch-founded libertarian think tank, will say that AFP is “micromanaged by the Kochs” (indicating involvement by both David and Charles Koch). [New Yorker, 8/30/2010]

Entity Tags: David Koch, Cato Institute, Americans for Prosperity, Century Strategies, Citizens for a Sound Economy, Koch Industries, Charles Koch, Tim Phillips, Ralph Reed, Richard Fink, Grover Norquist

Timeline Tags: Domestic Propaganda

The Wall Street Journal’s Stephen Moore interviews reclusive billionaire Charles Koch, the head of the Koch Brothers oil empire. Among the items of interest in the interview is Koch’s admission that he, along with his brother David (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, and Late 2004), coordinates the funding of the conservative infrastructure of some of the most influential front groups, political campaigns, think tanks, media outlets, and other such efforts through a semiannual meeting with wealthy conservative donors. (Moore himself receives Koch funding for his work, according to a Think Progress report published four years later. In return, Moore is quite laudatory in the interview, writing that Koch is a “creative forward-thinking… professorial CEO” who “is immersed in the ideas of liberty and free markets.”) Koch tells Moore that his basic goal is to strengthen what he calls the “culture of prosperity” by eliminating “90 percent” of all laws and government regulations. Moore writes of the twice-yearly conference: “Mr. Koch’s latest crusade to spread the ideas of liberty has been his sponsorship of a twice-yearly conference that gathers together many of the most successful American entrepreneurs, from T. Boone Pickens to former Circuit City CEO Rick Sharp. The objective is to encourage these captains of industry to help fund free-market groups devoted to protecting the fragile infrastructure of liberty. That task seems especially critical given that so many of the global superrich, like George Soros and Warren Buffett, finance institutions that undermine the very system of capitalism that made their success possible (see January - November 2004). Isn’t this just the usual rich liberal guilt, I ask. ‘No,’ he says, ‘I think they simply haven’t been sufficiently exposed to the ideas of liberty.’” [Wall Street Journal, 5/6/2006; Think Progress, 10/20/2010]

Entity Tags: Think Progress (.org), Charles Koch, Wall Street Journal, David Koch, Stephen Moore

Timeline Tags: Civil Liberties

A poster promoting ‘Hillary: The Movie.’A poster promoting ‘Hillary: The Movie.’ [Source: New York Times]The conservative lobbying group Citizens United (CU—see May 1998 and (May 11, 2004)) releases a film entitled Hillary: The Movie. The film is a lengthy diatribe attacking the character and career of Senator Hillary Clinton (D-NY), a leading candidate for the Democratic presidential nomination. Large portions of the film are comprised of conservative critics launching attacks against the personalities and character of Clinton and her husband, former President Clinton. CU president David Bossie (see May 1998) says he based his film on a documentary, Fahrenheit 9/11, released in 2004 by liberal filmmaker Michael Moore (see August 6, 2004), and calls it “a rigorously researched critical biography” comparable to the material presented on political talk shows such as Meet the Press. [Washington Post, 3/15/2009; Moneyocracy, 2/2012] Bossie intended for the film to be released in late 2007 and impact the 2008 race in the same way that he believes Fahrenheit 9/11 impacted the 2004 race. A cable company made the film, at a cost of $1.2 million, available for free to viewers on “video on demand.” Bossie also scheduled a small theater run for the film, but his primary focus was always cable television and the accompanying television advertisements. Knowing the film will probably run afoul of campaign law, he hired lawyers, first James Bopp Jr. (a former member of the far-right Young Americans for Freedom—YAF—and the former general counsel for the National Right to Life Committee—see November 1980 and After) [New Yorker, 5/21/2012] and later Theodore B. Olson, the former solicitor general under the Bush administration. Olson will later say the film is “a critical biographical assessment” that provides “historical information about the candidate and, perhaps, some measure of entertainment as well.” The New York Times calls it “a scathingly hostile look at Mrs. Clinton” replete with “ripe voice-overs, shadowy re-enactments, and spooky mood music.” The film also contains interviews and material from mainstream media reporters, and interviews with figures such as former CIA agent Gary Aldrich, who wrote a “tell-all” book about the Clinton administration, and with Kathleen Willey, who has claimed that Bill Clinton once made an unwelcome sexual advance towards her. Reviewer Megan Carpentier of Radar Online will trounce the movie, saying that it “scrolls through more than a decade of press clippings and a treasure trove of unflattering pictures in its one-sided romp” and will advise potential viewers to watch it “while inebriated in the manner of your choosing, and only if you don’t pay $10 for the privilege.” [New York Times, 3/5/2009] Bossie claims the movie has nothing to do with the impending primary elections. CU intends to show the movie in a small number of theaters but primarily on “video on demand” cable broadcasts, with accompanying television advertisements. In return for a $1.2 million fee, a cable television consortium has agreed to make the movie freely available to its customers as part of what CU calls its “Election ‘08” series. (CU has another negative documentary on Clinton’s Democratic challenger Barack Obama in the works—see October 28-30, 2008—but apparently has no plans to air any documentaries on Republican candidate John McCain or any other Republican presidential candidates.) However, the Federal Election Commission (FEC) refuses to allow the film to be aired on cable channels, or advertised for theater release, because the FEC considers the film “electioneering” and thus subject to campaign finance law (see March 27, 2002) restrictions. Moreover, the film and its planned distribution are funded by corporate donations. [United States District Court for the District Of Columbia, 1/15/2008; Richard Hasen, 1/15/2008; New Yorker, 5/21/2012] Bossie claims the film takes no position on Clinton’s candidacy, and says that if he had to vote between Hillary Clinton and Barack Obama, he would vote for Clinton. [New York Times, 3/5/2009]
Court Fight - Bopp, CU’s original lawyer, decides to pursue the same general aggressive course that he took in a recent successful Supreme Court campaign finance case, the Wisconsin Right to Life (WRTL) decision (see Mid-2004 and After). The Hillary film was envisioned from the outset to serve multiple purposes: to advance conservative ideology, damage Clinton’s presidential chances (despite Bossie’s claims), and generate profits. Bopp knows that the FEC would likely classify the film as a political advertisement and not a work of journalism or entertainment (see August 6, 2004), and therefore would fall under campaign law restrictions. Before the film is officially released, Bopp takes the film to the FEC for a ruling, and when the FEC, as expected, rules the film to be “electioneering communication” that comes under campaign law restrictions, Bopp files a lawsuit with the Washington, DC, federal district court. The court rules in favor of the FEC judgment, denying CU its request for a preliminary injunction against the FEC’s ruling. The court specifically finds that the WRTL decision does not apply in this case. “[I]f the speech cannot be interpreted as anything other than an appeal to vote for or against a candidate, it will not be considered genuine issue speech even if it does not expressly advocate the candidate’s election or defeat,” the court states. The court also questions CU’s statement that the film “does not focus on legislative issues.… The movie references the election and Senator Clinton’s candidacy, and it takes a position on her character, qualifications, and fitness for office.” Film commentator Dick Morris has said of the film that it will “give people the flavor and an understanding of why she should not be president.” The court rules, “The movie is susceptible of no other interpretation than to inform the electorate that Senator Clinton is unfit for office, that the United States would be a dangerous place in a President Hillary Clinton world, and that viewers should vote against her.” (During arguments, Bopp says that the film is much like what a viewer would see on CBS’s evening news show 60 Minutes, and Judge Royce Lamberth laughs aloud, saying: “You can’t compare this to 60 Minutes. Did you read this transcript?” Other judges find it problematic that one of the film’s central “issues” is its assertion that Clinton is, in Bopp’s words, “a European socialist,” but still claims not to be overtly partisan.) [Mother Jones, 1/13/2008; United States District Court for the District Of Columbia, 1/15/2008; Richard Hasen, 1/15/2008; New Yorker, 5/21/2012]
Supreme Court Appeal - CU appeals the court’s decision directly to the Supreme Court. Bossie soon decides to replace Bopp with Olson, a far more prominent figure in conservative legal circles. Toobin will write: “Ted Olson had argued and won Bush v. Gore (see 9:54 p.m. December 12, 2000), and was rewarded by President Bush with an appointment as solicitor general. Olson had argued before the Supreme Court dozens of times, and he had a great deal of credibility with the justices. He knew how to win.” [Richard Hasen, 1/15/2008; New Yorker, 5/21/2012]
Previous Attempt - In September 2004, Bossie and CU attempted, without success, to release a similar “documentary” supporting President Bush and attacking Democratic presidential candidate John Kerry (D-MA) on television, just weeks before the presidential election. The FEC turned down the group’s request. The FEC did allow the film to be shown in theaters (see September 8, 2004 and September 27-30, 2004).
'Ten-Year Plan' - Bopp will later reveal that the lawsuit is part of what he will call a “10-year plan” to push the boundaries of campaign finance law, and that he urged Bossie and other CU officials to use the documentary as a “test case” for overturning the body of law (see January 25, 2010).

Entity Tags: William Jefferson (“Bill”) Clinton, Kathleen Willey, Megan Carpentier, Theodore (“Ted”) Olson, New York Times, Michael Moore, John McCain, Royce Lamberth, James Bopp, Jr, Dick Morris, Gary Aldrich, Barack Obama, Bush administration (43), Hillary Clinton, Citizens United, David Bossie, Federal Election Commission, Clinton administration

Timeline Tags: Civil Liberties, 2008 Elections

The Supreme Court dismisses an appeal by the political advocacy group Citizens United (CU) that argued the group’s First Amendment rights had been violated by the Federal Election Commission (FEC). The Court had agreed to hear CU’s case that it should be allowed to broadcast a partisan political documentary about Democratic presidential candidate Hillary Clinton, Hillary: The Movie, on cable television networks in the days before critical primary elections (see January 10-16, 2008). The Court did not rule on the merits of the case, but instead ruled that CU should have filed its case first with the federal appeals court in Washington. The ruling does not dismiss the case entirely, but makes it unlikely that the Court will rule on the campaign law issues surrounding the case (see March 27, 2002) before the November 2008 elections. Lawyer James Bopp, representing CU, says, “It is our intention to get the case expeditiously resolved on the merits in the district court, and then if we are unsuccessful there, to appeal” again to the Court. Bopp accuses Justice Department lawyers of trying to slow down the case to prevent it being resolved before the election. CU also wants to release a similar documentary about the other leading Democratic presidential contender, Barack Obama (D-IL—see October 28-30, 2008), in a similar fashion to its planned widespread release of the Clinton film. Justice Stephen Breyer, one of the Court’s more liberal members, says in the order dismissing the appeal that had the case been taken up, he would have affirmed the previous decision in favor of the FEC. None of the other justices made any public statement about the case. The case will be heard by the Washington, DC, federal appeals court. [Christian Science Monitor, 3/24/2008] The appeals court will find against CU, and the organization will reapply to the Court for a hearing, an application which will be granted (see March 15, 2009).

Entity Tags: James Bopp, Jr, Barack Obama, Citizens United, Federal Election Commission, Hillary Clinton, US Department of Justice, US Supreme Court, Stephen Breyer

Timeline Tags: Civil Liberties

The US Supreme Court hears the case of Citizens United v. Federal Election Commission, in which the Federal Election Commission (FEC) refused to let the conservative lobbying organization Citizens United (CU) air a film entitled Hillary: The Movie during the 2008 presidential primary season (see January 10-16, 2008). The FEC ruled that H:TM, as some have shortened the name, was not a film, but a 90-minute campaign ad with no other purpose than to smear and attack Senator Hillary Clinton (D-NY) as being unfit to hold office. A panel of appeals judges agreed with the FEC’s ruling, which found the film was “susceptible of no other interpretation than to inform the electorate that Senator Clinton is unfit for office, that the United States would be a dangerous place in a President Hillary Clinton world, and that viewers should vote against her.” As a campaign ad, the film’s airing on national network television came under campaign finance laws, particularly since the film was financed by corporate political donations. CU was allowed to air the film in theaters and sell it in DVD and other formats, but CU wanted to pay $1.2 million to have the movie aired on broadcast cable channels and video-on-demand (pay per view) services, and to advertise its broadcast. CU president David Bossie (see May 1998) hired former Bush Solicitor General Theodore Olson after the Supreme Court agreed to hear the case. Bossie denies that he chose Olson because of their shared loathing of the Clintons—they worked together to foment the “Arkansas Project,” a Clinton smear effort that resulted in Congress unsuccessfully impeaching President Clinton—but because Olson gave “us the best chance to win.” Bossie dedicated the Clinton film to Barbara Olson, Olson’s late wife, who died in the 9/11 attacks (see (9:20 a.m.) September 11, 2001). [Washington Post, 3/15/2009; Christian Science Monitor, 3/23/2009] “I just don’t see how the Federal Election Commission has the authority to use campaign-finance rules to regulate advertising that is not related to campaigns,” Bossie told reporters last year. [Christian Science Monitor, 2/1/2008]
Uphold or Cut Back McCain-Feingold? - Observers, unaware of the behind-the-scenes machinations, believe the case gives the Court the opportunity to either uphold or cut back the body of law stemming from the Bipartisan Campaign Reform Act (BCRA, or McCain-Feingold) campaign finance law (see March 27, 2002), which limits the ability of corporations and labor unions to spend unlimited amounts of money on political advertising before elections. CU is arguing that the BCRA is unconstitutional, having argued before a previous court that the the BCRA law was unconstitutional in the way it was being enforced by the FEC against its film. In its brief to the Court, CU denies the film is any sort of “electioneering,” claiming: “Citizens United’s documentary engages in precisely the political debate the First Amendment was written to protect… The government’s position is so far-reaching that it would logically extend to corporate or union use of a microphone, printing press, or the Internet to express opinions—or articulate facts—pertinent to a presidential candidate’s fitness for office.” The Justice Department, siding with the FEC, calls the film an “unmistakable” political appeal, stating, “Every element of the film, including the narration, the visual images and audio track, and the selection of clips, advances the clear message that Senator Clinton lacked both the integrity and the qualifications to be president of the United States.” The film is closer to a political “infomercial” than a legitimate documentary, the Justice Department argues. The film’s “unmistakable message is that Senator Clinton’s character, beliefs, qualifications, and personal history make her unsuited to the office of the President of the United States,” according to a Justice Department lawyer, Edwin Kneedler, who filed a brief on behalf of the FEC. The Justice Department wants the Court to uphold FEC disclosure requirements triggered by promotional ads, while Olson and CU want the Court to strike down the requirements. Olson says financial backers of films such as H:TM may be reluctant to back a film if their support becomes publicly known. Kneedler, however, writes that such disclosure is in the public interest. The Reporters Committee for Freedom of the Press (RCFP) is joining CU in its court fight, stating in a brief, “By criminalizing the distribution of a long-form documentary film as if it were nothing more than a very long advertisement, the district court has created uncertainty about where the line between traditional news commentary and felonious advocacy lies.” Scott Nelson of the Public Citizen Litigation Group, which supports the BCRA, disagrees with RCFP’s stance, saying, “The idea that [the law] threatens legitimate journalism and people who are out creating documentaries, I think, is a stretch.” [Washington Post, 3/15/2009; Christian Science Monitor, 3/23/2009] The RCFP has said that the movie “does not differ, in any relevant respect, from the critiques of presidential candidates produced throughout the entirety of American history.” And a lawyer with the RCFP, Gregg P. Leslie, asked, “Who is the FEC to decide what is news and what kind of format news is properly presented in?” [New York Times, 3/5/2009]
Filled with False Information - The movie was relentlessly panned by critics, who found much of its “information” either misrepresentative of Clinton or outright false. CU made several other films along with the Clinton documentary, which included attacks on filmmaker Michael Moore, the American Civil Liberties Union, illegal immigrants, and Clinton’s fellow presidential contender Barack Obama (D-IL—see October 28-30, 2008). [Washington Post, 3/15/2009; Christian Science Monitor, 3/23/2009]
Arguments Presented - Olson and his opponent, Deputy Solicitor General Malcolm Stewart, present arguments in the case to the assembled Court. Traditionally, lawyers with the Solicitor General (SG)‘s office are far more straightforward with the Court than is usual in advocacy-driven cases. New Yorker reporter Jeffrey Toobin later writes: “The solicitor general’s lawyers press their arguments in a way that hews strictly to existing precedent. They don’t hide unfavorable facts from the justices. They are straight shooters.” Stewart, who clerked for former Justice Harry Blackmun and is a veteran of the SG office since 1993, is well aware of the requirements of Court arguments. Justice Samuel Alito, a conservative justice with a penchant for asking tough questions that often hide their true intentions behind carefully neutral wording, is interested in seeing how far he can push Stewart’s argument. Does the BCRA apply only to television commercials, he asks, or might it regulate other means of communication during a federal campaign? “Do you think the Constitution required Congress to draw the line where it did, limiting this to broadcast and cable and so forth?” Could the law limit a corporation from “providing the same thing in a book? Would the Constitution permit the restriction of all those as well?” Stewart says that the BCRA indeed imposes such restrictions, stating, “Those could have been applied to additional media as well.” Could the government regulate the content of a book? Alito asks. “That’s pretty incredible. You think that if a book was published, a campaign biography that was the functional equivalent of express advocacy, that could be banned?” Stewart, who tardily realizes where Alito was going, attempts to recover. “I’m not saying it could be banned,” he responds. “I’m saying that Congress could prohibit the use of corporate treasury funds and could require a corporation to publish it using its—” Justice Anthony Kennedy, considered a “swing” justice in some areas but a reliable conservative vote in campaign-spending cases, interrupts Stewart. “Well, suppose it were an advocacy organization that had a book,” Kennedy says. “Your position is that, under the Constitution, the advertising for this book or the sale for the book itself could be prohibited within the 60- and 30-day periods?” Stewart gives what Toobin later calls “a reluctant, qualified yes.” At this point, Roberts speaks up. According to Toobin, Roberts intends to paint Stewart into something of a corner. “If it has one name, one use of the candidate’s name, it would be covered, correct?” Roberts asks. Stewart responds, “That’s correct.” Roberts then asks, “If it’s a 500-page book, and at the end it says, ‘And so vote for X,’ the government could ban that?” Stewart responds, “Well, if it says ‘vote for X,’ it would be express advocacy and it would be covered by the preexisting Federal Election Campaign Act (FECA—see February 7, 1972, 1974, May 11, 1976, and January 8, 1980) provisions.” Toobin later writes that with their “artful questioning, Alito, Kennedy, and Roberts ha[ve] turned a fairly obscure case about campaign-finance reform into a battle over government censorship.” Unwittingly, Stewart has argued that the government has the right to censor books because of a single line. Toobin later writes that Stewart is incorrect, that the government could not ban or censor books because of McCain-Feingold. The law applies to television advertisements, and stems from, as Toobin will write, “the pervasive influence of television advertising on electoral politics, the idea that commercials are somehow unavoidable in contemporary American life. The influence of books operates in a completely different way. Individuals have to make an affirmative choice to acquire and read a book. Congress would have no reason, and no justification, to ban a book under the First Amendment.” Legal scholars and pundits will later argue about Stewart’s answers to the three justices’ questions, but, as Toobin will later write, “the damage to the government’s case had been profound.” [New Yorker, 5/21/2012]
Behind the Scenes - Unbeknownst to the lawyers and the media, the Court initially renders a 5-4 verdict in favor of CU, and strikes down decades of campaign finance law, before withdrawing its verdict and agreeing to hear rearguments in the fall (see June 29, 2009). Toobin will write that the entire case is orchestrated behind the scenes, by Roberts and his fellow majority conservatives. Toobin will write of “a lengthy and bitter behind-the-scenes struggle among the justices that produced both secret unpublished opinions and a rare reargument of a case” that “reflects the aggressive conservative judicial activism of the Roberts Court.” Toobin will write that although the five conservatives are involved in broadening the scope of the case, and Kennedy actually writes the majority decision, “the result represented a triumph for Chief Justice Roberts. Even without writing the opinion, Roberts, more than anyone, shaped what the Court did. As American politics assumes its new form in the post-Citizens United era, the credit or the blame goes mostly to him.” The initial vote on the case is 5-4, with the five conservative justices—Alito, Kennedy, Roberts, Scalia, and Clarence Thomas—taking the majority.
Expansive Concurrence Becomes the Majority Opinion - At the outset, the case is decided on the basis of Olson’s narrow arguments, regarding the issue of a documentary being made available on demand by a nonprofit organization (CU). Roberts takes the majority opinion onto himself. The four liberals in the minority are confident Roberts’s opinion would be as narrow as Olson’s arguments. Roberts’s draft opinion is indeed that narrow. Kennedy writes a concurrence opining that the Court should go further and overturn McCain-Feingold, the 1990 Austin decision (see March 27, 1990), and end the ban on corporate donations to campaigns (see 1907). When the draft opinions circulates, the other three conservatives begin rallying towards Kennedy’s more expansive concurrence. Roberts then withdraws his draft and lets Kennedy write the majority opinion in line with his concurrence. Toobin later writes: “The new majority opinion transformed Citizens United into a vehicle for rewriting decades of constitutional law in a case where the lawyer had not even raised those issues. Roberts’s approach to Citizens United conflicted with the position he had taken earlier in the term.” During arguments in a different case, Roberts had “berated at length” a lawyer “for his temerity in raising an issue that had not been addressed in the petition. Now Roberts was doing nearly the same thing to upset decades of settled expectations.”
Dissent - The senior Justice in the minority, John Paul Stevens, initially assigns the main dissent to Justice David Souter. Souter, who is in the process of retiring from the Court, writes a stinging dissent that documents some of the behind-the-scenes machinations in the case, including an accusation that Roberts violated the Court’s procedures to get the outcome he wanted. Toobin will call Souter’s planned dissent “an extraordinary, bridge-burning farewell to the Court” that Roberts feels “could damage the Court’s credibility.” Roberts offers a compromise: Souter will withdraw his dissent if the Court schedules a reargument of the case in the fall of 2009 (see June 29, 2009). The second argument would feature different “Questions Presented,” and the stakes of the case would be far clearer. The four minority justices find themselves in something of a conundrum. They feel that to offer the Kennedy opinion as it stands would be to “sandbag” them and the entire case, while a reargument would at least present the issues that the opinion was written to reflect. And there is already a 5-4 majority in favor of Kennedy’s expansive opinion. The liberals, with little hope of actually winning the case, agree to the reargument. The June 29, 2009 announcement will inform the parties that the Court is considering overturning two key decisions regarding campaign finance restrictions, including a decision rendered by the Roberts court (see March 27, 1990 and December 10, 2003) and allow essentially unlimited corporate spending in federal elections. Court observers will understand that the Court is not in the habit of publicly asking whether a previous Court decision should be overruled unless a majority is already prepared to do just that. Toobin will call Roberts and his four colleagues “impatient” to make the decision, in part because an early decision would allow the ruling to impact the 2010 midterm elections. [New Yorker, 5/21/2012]
Created to Give Courts Shot at McCain-Feingold - Critics, as yet unaware of the behind-the-scenes maneuvering, will later say that CU created the movie in order for it to fall afoul of the McCain-Feingold campaign finance law, and give the conservatives on the Court the opportunity to reverse or narrow the law. Nick Nyhart of Public Campaign will say: “The movie was created with the idea of establishing a vehicle to chip away at the decision. It was part of a very clear strategy to undo McCain-Feingold.” Bossie himself will later confirm that contention, saying: “We have been trying to defend our First Amendment rights for many, many years. We brought the case hoping that this would happen… to defeat McCain-Feingold.” [Washington Post, 1/22/2010] CU’s original lawyer on the case, James Bopp, will later verify that the case was brought specifically to give the Court a chance to cut back or overturn campaign finance law (see January 25, 2010). The Court will indeed overturn McCain-Feingold in the CU decision (see January 21, 2010).

Entity Tags: Clarence Thomas, US Department of Justice, Theodore (“Ted”) Olson, Scott Nelson, US Supreme Court, Bipartisan Campaign Reform Act of 2002, Citizens United, Barbara Olson, American Civil Liberties Union, Anthony Kennedy, Barack Obama, Samuel Alito, Reporters Committee for Freedom of the Press, William Jefferson (“Bill”) Clinton, Michael Moore, Hillary Clinton, Gregg P. Leslie, Nick Nyhart, Edwin Kneedler, David Souter, Federal Election Commission, James Bopp, Jr, John Paul Stevens, David Bossie, John G. Roberts, Jr, Jeffrey Toobin, Malcolm Stewart

Timeline Tags: Civil Liberties

The Center for American Progress (CAP), a progressive think tank and lobbying organization, releases a report that says the “tea party” movement protesting the various policies of the Obama administration (see April 8, 2009) is not, as purported, entirely a grassroots movement of ordinary citizens, but an “astroturf” movement created, organized, and funded by powerful conservative and industry firms and organizations. (CAP notes that the anti-tax “tea parties,” with “tea” standing for “Taxed Enough Already,” fail to note that President Obama’s recent legislation actually has cut taxes for 95 percent of Americans.) Two of the most prominent organizations behind the “tea parties” are FreedomWorks and Americans for Progress (AFP). FreedomWorks (see April 14, 2009) is a corporate lobbying firm run by former House Majority Leader Dick Armey (R-TX), and organized the first “tea party,” held in Tampa, Florida, on February 27. It then began planning and organizing “tea parties” on a national scale; officials coordinated logistics, called conservative activists, and provided activists with sign ideas and slogans and talking points to use during protests. AFP has coordinated with FreedomWorks. AFP is a corporate lobbying firm run by Tim Phillips, a former lobbying partner of conservative activist Ralph Reed, and funded in part by Koch Industries, the largest private oil corporation in America (see May 29, 2009). Former House Speaker Newt Gingrich (R-GA) is also involved, through his lobbying form American Solutions for Winning the Future, which is supported by oil companies.
Support, Promotion from Fox News - On cable news channels, Fox News and Fox Business have run promotions for the “tea parties” in conjunction with enthusiastic reports promoting the affairs (see April 13-15, 2009, April 15, 2009, April 15, 2009, and April 6-13, 2009); in return, the organizers use the Fox broadcasts to promote the events. Fox hosts Glenn Beck, Neil Cavuto, and Sean Hannity all plan to broadcast live reports from the events. Fox also warns its viewers that the Obama administration may send “spies” to the events. (Fox justifies its depth of coverage by saying that it provided similar coverage for the 1995 Million Man March. However, Fox did not begin broadcasting until 1996—see October 7, 1996.)
Republican Support - Congressional Republicans have embraced the “tea parties” as ways to oppose the Obama administration. Many leading Republicans, such as Minority Leader John Boehner (R-OH), Paul Ryan (R-WI), and some 35 others, will speak at AFP-funded “tea parties.” Republican National Committee Chairman Michael Steele has moved the RNC to officially support the protests. And Senator David Vitter (R-LA) has introduced legislation formally honoring April 15 as “National Tea Party Day.” “It’s going to be more directed at Obama,” says reporter and commentator Ana Marie Cox. “This is very much, I think, part of the midterm strategy” to win elections in 2010.
Fringe Elements - According to CAP, many “fringe” elements of the conservative movement—including “gun rights militias, secessionists, radical anti-immigrant organizations, and neo-Nazi groups”—are involved in the “tea parties.” [Think Progress, 4/15/2009; Think Progress, 5/29/2009]

Entity Tags: Ralph Reed, Republican National Committee, Paul Ryan, Tim Phillips, Obama administration, Sean Hannity, Newt Gingrich, John Boehner, Michael Steele, Barack Obama, Neil Cavuto, Center for American Progress, Ana Marie Cox, Americans for Progress, Fox Business Channel, Fox News, Koch Industries, David Vitter, American Solutions for Winning the Future, FreedomWorks, Glenn Beck, Dick Armey

Timeline Tags: Domestic Propaganda, 2010 Elections

Progressive news and advocacy Web site Think Progress profiles Tim Phillips, the president of Americans for Prosperity (AFP), the conservative Washington lobbying organization that is planning to coordinate anti-tax “tea party” protests (see April 8, 2009 and April 15, 2009) with a summer push against the White House’s health care reform proposals. AFP is largely funded by Koch Industries, the largest private oil corporation in the US; AFP has long advocated positions favorable to the energy and health care industries. AFP also uses the technique of “astroturfing,” the creation of ostensibly citizen-driven “grassroots” advocacy groups that are actually funded and driven by corporate and lobbying interests. AFP’s most recent creation is a “front group” called “Patients United Now” (PUN), a group explicitly designed to thwart health care reform. PUN’s Web site declares, “We are people just like you,” and actively solicits participation and donations from ordinary Americans without revealing its corporate roots. AFP employs close to 70 Republican operatives and former oil industry officials.
Other 'Astroturf' Campaigns - Think Progress notes that other AFP “Astroturf” groups have organized events such as the “Hot Air Tour” attacking environmental regulation, the “Free Our Energy” movement to promote domestic oil drilling, the “Save My Ballot Tour” which sent conservative activist “Joe the Plumber” (see October 10, 2008) around the country attacking the Employee Free Choice Act, the “No Climate Tax” group aimed at defeating the Clean Energy Economy legislation, and the “No Stimulus” organization, which opposes the Obama administration’s economic policies.
Headed by Former Abramoff Colleague - AFP’s president is Tim Phillips, a veteran conservative lobbyist and “astroturfer.” In 1997, Phillips, then a Republican campaign strategist, joined Christian conservative activists in a new lobbying firm, Century Strategies. The firm promised to mount “grassroots lobbying drives” and explained its strategy as “it matters less who has the best arguments and more who gets heard—and by whom.” Century Strategies was given a boost by Texas GOP political operative Karl Rove, and began its career representing the Texas oil giant Enron. The firm was paid $380,000 to mobilize “religious leaders and pro-family groups” to push energy deregulation on the federal and state level, an effort which helped lead, says Think Progress, “to the energy crisis and economic meltdown of 2001.” As part of their efforts, Phillips and his partner, former Christian Coalition official Ralph Reed, used their congressional connections and “placed” purported “news” articles in the New York Times and other prominent newspapers. Phillips managed the firm’s direct mail subsidiary, Millennium Marketing, which was hired by then-GOP lobbyist Jack Abramoff to pressure members of Congress to oppose federal wage and worker safety legislation. Phillips and Reed also worked with Abramoff in the lobbyists’ efforts to fraudulently charge Native American tribes millions of dollars in lobbying fees over their efforts to build casinos on tribal lands. And they helped Abramoff launder gambling money. Phillips and Reed are responsible for the ads that helped Republicans win election victories by comparing Democratic candidates to Osama bin Laden, and helped George W. Bush (R-TX) defeat Senator John McCain (R-AZ) in 2000 by accusing McCain of fathering an illegitimate black child. They were unsuccessful in preventing the 2000 election of Republican Eric Cantor (R-VA) to the House by attacking his Jewish heritage. [Think Progress, 5/29/2009]
Headed by Oil Billionaire, Republican Party Funder - MSNBC’s Rachel Maddow will later note that AFP’s director is Art Pope, a multi-millionaire who has given so much money to the North Carolina Republican Party that it named its headquarters after him. The national chairman of AFP is David Koch, who with his brother runs Koch Industries, the largest privately held oil company in the US and a longtime supporter of right-wing causes. Koch is the 19th richest man in the world. [MSNBC, 8/6/2009]

Entity Tags: Tim Phillips, Think Progress (.org), Ralph Reed, Patients United Now, Millennium Marketing, Century Strategies, David Koch, Art Pope, Koch Industries, Americans for Prosperity, Jack Abramoff

Timeline Tags: US Health Care, Domestic Propaganda, 2010 Elections

The US Supreme Court says it will schedule a hearing on the controversial “Citizens United” case, Citizens United v. Federal Election Commission (see March 15, 2009), for September 2009, in an unusual second presentation before the Court (see September 9, 2009). According to the justices, the lawyers for both Citizens United (CU) and the federal government should argue whether previous Court rulings upholding federal election law should be overturned based on First Amendment grounds. Both sides are asked to argue whether the Court should overrule the 1990 Austin decision (see March 27, 1990), which upheld restrictions on corporate spending on political campaigns, and/or the 2003 McConnell decision (see December 10, 2003), which upheld the bulk of the 2002 Bipartisan Campaign Reform Act (BCRA—see March 27, 2002). Law professor Nathaniel Persily says of the directive: “The Court is poised to reverse longstanding precedents concerning the rights of corporations to participate in politics. The only reason to ask for reargument on this is if they’re going to overturn Austin and McConnell.” The New York Times observes, “The Roberts court [referring to the Supreme Court under Chief Justice John Roberts] has struck down every campaign finance regulation to reach it, and it seems to have a majority prepared to do more.” Previous lower court rulings have found that CU’s attempt to air a film attacking presidential candidate Hillary Clinton (D-NY) was an attempt to engage in “electioneering,” and thus came under the restrictions of the McCain-Feingold campaign law (see March 27, 2002). The film was financed in part by donations from corporations and individuals whom CU has refused to identify. [United Press International, 6/29/2009; New York Times, 6/29/2009] CU previously attempted to have its case heard by the Court, but the Court sent the case back to a federal appeals court, which ruled in favor of the Federal Election Commission (FEC) and against CU (see March 24, 2008). Law professor Richard Hasen agrees with Persily and the Times that the decision to reargue the case a second time indicates that the Court’s conservative majority is prepared to overturn both Austin and McConnell, and allow essentially unlimited corporate spending in federal elections. Hasen writes that if the Court does indeed rule in favor of unlimited corporate spending, it will be in response to the fundraising advantage currently enjoyed by Democratic presidential candidate Barack Obama (D-IL) over his Republican counterpart, John McCain (R-AZ). [Slate, 6/29/2009] The decision will indeed overturn both Austin and McConnell, and gut most of the BCRA (see January 21, 2010).

Entity Tags: Hillary Clinton, Bipartisan Campaign Reform Act of 2002, Barack Obama, Federal Election Commission, US Supreme Court, New York Times, John G. Roberts, Jr, Richard L. Hasen, Nathaniel Persily, John McCain, Citizens United

Timeline Tags: Civil Liberties

The second round of arguments in the Citizens United v. Federal Election Commission case (see January 10-16, 2008, March 24, 2008, March 15, 2009, and June 29, 2009) is heard by the US Supreme Court. The first round of arguments, which unexpectedly focused on an unplanned examination of government censorship, ended in a 5-4 split, with the majority of conservative justices readying a decision to essentially gut the entire body of federal campaign finance law in the name of the First Amendment (see March 27, 1990, March 27, 2002, and December 10, 2003), but an angry dissent by Justice David Souter that accused Chief Justice John Roberts of failing to follow the procedures of the Court in rendering the opinion prompted Roberts to temporarily withdraw the opinion and offer a rare second argument (see May 14, 2012). Newly appointed Solicitor General Elena Kagan argues her first case before the Court. Citizens United, the plaintiff, is represented by former Bush administration Solicitor General Theodore Olson. Olson, a veteran of Court arguments, quickly discerns from the new round of “Questions Presented” that the Court is prepared to not only find in the plaintiff’s favor, but to use the case to render a broad verdict against campaign finance law as a whole. Olson argues cautiously, not wanting to extend the case farther than the Court may desire. The four minority liberal justices, knowing the case is lost, try their best in their questioning to raise awareness in the public once news reports of the arguments are made public. One of those justices, Ruth Bader Ginsburg, asks: “Mr. Olson, are you taking the position that there is no difference” between the First Amendment rights of a corporation and those of an individual? “A corporation, after all, is not endowed by its creator with inalienable rights. So is there any distinction that Congress could draw between corporations and natural human beings for purposes of campaign finance?” Olson replies, “What the Court has said in the First Amendment context… over and over again is that corporations are persons entitled to protection under the First Amendment” (see January 30, 1976, April 26, 1978, June 25, 2007, and June 26, 2008). Ginsburg follows up by asking, “Would that include today’s mega-corporations, where many of the investors may be foreign individuals or entities?” Olson replies, “The Court in the past has made no distinction based upon the nature of the entity that might own a share of a corporation.” Kagan then takes her turn, and begins: “Mr. Chief Justice, and may it please the Court, I have three very quick points to make about the government position. The first is that this issue has a long history. For over a hundred years, Congress has made a judgment that corporations must be subject to special rules when they participate in elections, and this Court has never questioned that judgment.” She begins to make her second point before Justice Antonin Scalia, one of the conservative majority, interrupts her. In 2012, author and reporter Jeffrey Toobin will write that Kagan almost certainly knows hers is a legal “suicide mission,” and can only hope that her arguments may sway the Court to narrow its decision and leave some of the existing body of campaign finance law intact. She tells Roberts later in the questioning period, “Mr. Chief Justice, as to whether the government has a preference as to the way in which it loses, if it has to lose, the answer is yes.” Justice John Paul Stevens, the most senior of the liberal minority, attempts to assist Kagan in making her argument, suggesting that the Court should content itself with a narrow ruling, perhaps creating an exception in the McCain-Feingold law (see March 27, 2002) for the plaintiff’s documentary (see January 10-16, 2008) or for “ads that are financed exclusively by individuals even though they are sponsored by a corporation.” Kagan agrees with Stevens’s proposal. Stevens then says: “Nobody has explained why that wouldn’t be a proper solution, not nearly as drastic. Why is that not the wisest narrow solution of the problem before us?” Kagan, with help from Ginsburg, undoes some of the damage done by Deputy Solicitor General Malcolm Stewart during the first argument, where he inadvertently gave the conservative justices the “censorship” argument by which they could justify a broader verdict. Ginsburg asks: “May I ask you one question that was highlighted in the prior argument, and that was if Congress could say no TV and radio ads, could it also say no newspaper ads, no campaign biographies? Last time, the answer was yes, Congress could, but it didn’t. Is that still the government’s answer?” Kagan replies: “The government’s answer has changed, Justice Ginsburg. We took the Court’s own reaction to some of those other hypotheticals very seriously. We went back, we considered the matter carefully.” Unlike Stewart, Kagan specifically says that the government cannot ban books. But the censorship argument remains. After the arguments, the justices render the same verdict: a 5-4 split favoring Citizens United. Roberts, Scalia, and Justices Samuel Alito, Anthony Kennedy, and Clarence Thomas vote in the majority, while Ginsburg, Stevens, and Justices Stephen Breyer and Sonia Sotomayor vote in the minority. The second round of questioning, with its much broader scope, gives Roberts and his conservative colleagues the justification they need to render a broad verdict that would gut existing campaign finance law (see January 21, 2010). [New Yorker, 5/21/2012]

Entity Tags: Elena Kagan, US Supreme Court, Citizens United, Antonin Scalia, Anthony Kennedy, Theodore (“Ted”) Olson, David Souter, Stephen Breyer, Samuel Alito, John G. Roberts, Jr, Jeffrey Toobin, Federal Election Commission, Sonia Sotomayor, John Paul Stevens, Ruth Bader Ginsburg, Malcolm Stewart, Clarence Thomas

Timeline Tags: Civil Liberties

Oil billionaire David Koch (see August 30, 2010), the founder of “astroturf” advocacy organization Americans for Prosperity (AFP—see Late 2004, October 2008, and August 6, 2009), makes a rare public appearance at an AFP gathering designed to celebrate the organization’s victories against Obama administration policies (see January 2009 and After). President Obama’s poll numbers are declining, and to a man, Republican senators are refusing to cooperate with the White House or with Congressional Democrats on any issues. Political pundits are labeling Obama “inept,” and “tea party” groups are accusing him of initiating “a government takeover.” Koch praises the AFP members at the event, saying: “Days like today bring to reality the vision of our board of directors when we started this organization, five years ago.… We envisioned a mass movement, a state-based one, but national in scope, of hundreds of thousands of American citizens from all walks of life standing up and fighting for the economic freedoms that made our nation the most prosperous society in history.… Thankfully, the stirrings from California to Virginia, and from Texas to Michigan, show that more and more of our fellow-citizens are beginning to see the same truths as we do.” [New Yorker, 8/30/2010]

Entity Tags: Americans for Prosperity, Obama administration, David Koch, Barack Obama

Timeline Tags: Domestic Propaganda

Reporter Lee Fang of the liberal Center for American Progress writes an op-ed for the Boston Globe comparing the current political attacks against Democratic efforts to reform health care being coordinated by the Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, May 29, 2009, and November 2009) with the efforts of their father, Fred Koch (see 1940 and After), to label former President John F. Kennedy a traitor and a Communist tool. David Koch recently helped coordinate, from behind the scenes, a protest that compared health care reform to the Holocaust, and other protests that have turned violent. More systematically, he and his reclusive brother Charles have funded such conservative organizations as Americans for Prosperity (AFP—see Late 2004) and other front groups, none of which bear the Koch name. Fang writes: “Americans for Prosperity’s tactics are not new. Just as Koch inherited his oil business from his father, Americans for Prosperity borrows from the ultra-right group also founded in part by his dad, the John Birch Society” (see 1945 and After, March 10, 1961, 1963, August 4, 2008, and April 26, 2010). Fred Koch helped conceive the far-right, anti-Communist John Birch Society (JBS), which, Fang writes, “cloaked its pro-business, anti-civil rights agenda in the rhetoric of the Cold War.” The JBS labeled Kennedy a Communist-inspired traitor and advocated his impeachment (see November 1963), stood against taxation as another aspect of “creeping Communism” inside the federal government, and claimed that the civil rights movement was being directed by the Soviet Union (see April 13, 2009 and December 11, 2009). The JBS helped promote the 1964 presidential candidacy of Senator Barry Goldwater (R-AZ) and helped Republicans win key Congressional seats in 1966. AFP and the JBS are alike, Fang notes, in that they rarely acknowledge their funding from wealthy corporate magnates. Both portray themselves as grassroots organizations that are dedicated to promoting freedom. For a time, the JBS succeeded in aligning the interests of the very rich with the idea of anti-Communist patriotism. Similarly, AFP promotes the interests of the extremely wealthy, including the Koch brothers, as synonymous with patriotic opposition to health care reform, financial regulation, net neutrality, and the estate tax. All are labeled as “socialist,” a favorite JBS epithet. Fang concludes that “[w]ith his millions,” David Koch will have “contributed greatly to the obstruction of universal health care, the denial of climate change, and the derailment of much of President Obama’s domestic agenda. His dad would be pleased.” [Boston Globe, 12/6/2009]

Entity Tags: Barry Goldwater, Americans for Prosperity, Barack Obama, Charles Koch, David Koch, John Birch Society, John F. Kennedy, Lee Fang, Fred Koch

Timeline Tags: Domestic Propaganda

Three of the Supreme Court justices in the majority decision: Antonin Scalia, John Roberts, and Anthony Kennedy.Three of the Supreme Court justices in the majority decision: Antonin Scalia, John Roberts, and Anthony Kennedy. [Source: Associated Press / Politico]The Supreme Court rules 5-4 that corporate spending in political elections may not be banned by the federal government. The case is Citizens United v. Federal Election Commission, No. 08-205. The Court is divided among ideological lines, with the five conservatives voting against the four moderates and liberals on the bench. The decision overrules two precedents about the First Amendment rights of corporations, and rules that corporate financial support for a party or candidate qualifies as “freedom of speech” (see March 11, 1957, January 30, 1976, May 11, 1976, April 26, 1978, January 8, 1980, November 28, 1984, December 15, 1986, June 26, 1996, June 25, 2007, and June 26, 2008). The majority rules that the government may not regulate “political speech,” while the dissenters hold that allowing corporate money to, in the New York Times’s words, “flood the political marketplace,” would corrupt the democratic process. The ramifications of the decision will be vast, say election specialists. [Legal Information Institute, 2010; CITIZENS UNITED v. FEDERAL ELECTION COMMISSION, 1/21/2010 pdf file; New York Times, 1/21/2010] In essence, the ruling overturns much of the Bipartisan Campaign Reform Act of 2002, commonly known as the McCain-Feingold law (BCRA—see March 27, 2002). The ruling leaves the 1907 ban on direct corporate contributions to federal candidates and national party committees intact (see 1907). The ban on corporate and union donors coordinating their efforts directly with political parties or candidates’ campaigns remains in place; they must maintain “independence.” Any corporation spending more than $10,000 a year on electioneering efforts must publicly disclose the names of individual contributors. And the ruling retains some disclosure and disclaimer requirements, particularly for ads airing within 30 days of a primary or 60 days of a general election. The Los Angeles Times writes: “The decision is probably the most sweeping and consequential handed down under Chief Justice John G. Roberts Jr. And the outcome may well have an immediate impact on this year’s mid-term elections to Congress.” [Los Angeles Times, 1/21/2010; OMB Watch, 1/27/2010; Christian Science Monitor, 2/2/2010; National Public Radio, 2012]
Unregulated Money Impacts Midterm Elections - The decision’s effects will be felt first on a national level in the 2010 midterm elections, when unregulated corporate spending will funnel millions of dollars from corporate donors into Congressional and other races. President Obama calls the decision “a major victory for big oil, Wall Street banks, health insurance companies, and the other powerful interests that marshal their power every day in Washington to drown out the voices of everyday Americans.” Evan Tracey of the Campaign Media Analysis Group, which tracks political advertising, says the Court “took what had been a revolving door and took the door away altogether. There was something there that slowed the money down. Now it’s gone.” [Legal Information Institute, 2010; CITIZENS UNITED v. FEDERAL ELECTION COMMISSION, 1/21/2010 pdf file; New York Times, 1/21/2010; Los Angeles Times, 1/21/2010; Think Progress, 1/21/2010]
Broadening in Scope - According to reporter and author Jeffrey Toobin, CU lawyer Theodore Olson had originally wanted to present the case as narrowly as possible, to ensure a relatively painless victory that would not ask the Court to drastically revise campaign finance law. But according to Toobin, the conservative justices, and particularly Chief Justice Roberts, want to use the case as a means of overturning much if not all of McCain-Feingold (see May 14, 2012). In the original argument of the case in March 2009 (see March 15, 2009), Deputy Solicitor General Malcolm Stewart unwittingly changed the scope of the case in favor of a broader interpretation, and gave Roberts and the other conservative justices the opportunity they may have been seeking. [New Yorker, 5/21/2012]
Majority Opinion Grants Corporations Rights of Citizens - The majority opinion, written by Justice Anthony Kennedy, reads in part: “If the First Amendment has any force, it prohibits Congress from fining or jailing citizens, or associations of citizens, for simply engaging in political speech.… The First Amendment does not permit Congress to make these categorical distinctions based on the corporate identity of the speaker and the content of the political speech.” In essence, Kennedy’s ruling finds, corporations are citizens. The ruling overturns two precedents: 1990’s Austin v. Michigan Chamber of Commerce, which upheld restrictions on corporate spending to support or oppose political candidates (see March 27, 1990) in its entirety, and large portions of 2003’s McConnell v. Federal Election Commission (see December 10, 2003), which upheld a portion of the BCRA that restricted campaign spending by corporations and unions. Before today’s ruling, the BCRA banned the broadcast, cable, or satellite transmission of “electioneering communications” paid for by corporations or labor unions from their general funds in the 30 days before a presidential primary and in the 60 days before the general elections. The law was restricted in 2007 by a Court decision to apply only to communications “susceptible to no reasonable interpretation other than as an appeal to vote for or against a specific candidate” (see June 25, 2007).
Encroachment on Protected Free Speech - Eight of the nine justices agree that Congress can require corporations to disclose their spending and to run disclaimers with their advertisements; Justice Clarence Thomas is the only dissenter on this point. Kennedy writes, “Disclosure permits citizens and shareholders to react to the speech of corporate entities in a proper way.” Kennedy’s opinion states that if the restrictions remain in place, Congress could construe them to suppress political speech in newspapers, on television news programs, in books, and on the Internet. Kennedy writes: “When government seeks to use its full power, including the criminal law, to command where a person may get his or her information or what distrusted source he or she may not hear, it uses censorship to control thought. This is unlawful. The First Amendment confirms the freedom to think for ourselves.”
Fiery Dissent - Justice John Paul Stevens, the oldest member of the court, submits a fiery 90-page dissent that is joined by Justices Stephen Breyer, Ruth Bader Ginsburg, and Sonia Sotomayor. Kennedy is joined by Roberts and fellow Associate Justices Samuel Alito, Antonin Scalia, and Thomas, though Roberts and Alito submit a concurring opinion instead of signing on with Kennedy, Scalia, and Thomas. “The difference between selling a vote and selling access is a matter of degree, not kind,” Stevens writes in his dissent. “And selling access is not qualitatively different from giving special preference to those who spent money on one’s behalf.” Stevens writes that the Court has long recognized the First Amendment rights of corporations, but the restrictions struck down by the decision are moderate and fair. “At bottom, the Court’s opinion is thus a rejection of the common sense of the American people, who have recognized a need to prevent corporations from undermining self government since the founding, and who have fought against the distinctive corrupting potential of corporate electioneering since the days of Theodore Roosevelt. It is a strange time to repudiate that common sense. While American democracy is imperfect, few outside the majority of this Court would have thought its flaws included a dearth of corporate money in politics.” Speaking from the bench, Stevens calls the ruling “a radical change in the law… that dramatically enhances the role of corporations and unions—and the narrow interests they represent—in determining who will hold public office.… Corporations are not human beings. They can’t vote and can’t run for office,” and should be restricted under election law. “Essentially, five justices were unhappy with the limited nature of the case before us, so they changed the case to give themselves an opportunity to change the law.”
Case Originated with 2008 Political Documentary - The case originated in a 2008 documentary by the right-wing advocacy group Citizens United (CU), called Hillary: The Movie (see January 10-16, 2008). The film, a caustic attack on then-Democratic presidential candidate Hillary Clinton (D-NY) and Democrats in general, was released for public viewing during the 2008 Democratic presidential primaries. When the Federal Election Commission (FEC) won a lawsuit against CU, based on the FEC’s contention that broadcasting the film violated McCain-Feingold, the group abandoned plans to release the film on a cable video-on-demand service and to broadcast television advertisements for it. CU appealed the ruling to the Supreme Court, and most observers believed the Court would decide the case on narrow grounds, not use the case to rewrite election law and First Amendment coverage. [Legal Information Institute, 2010; CITIZENS UNITED v. FEDERAL ELECTION COMMISSION, 1/21/2010 pdf file; New York Times, 1/21/2010; Los Angeles Times, 1/21/2010; Think Progress, 1/21/2010; Associated Press, 1/21/2010; Christian Science Monitor, 2/2/2010]
Case Brought in Order to Attack Campaign Finance Law - Critics have said that CU created the movie in order for it to fall afoul of the McCain-Feingold campaign finance law, and give the conservatives on the Court the opportunity to reverse or narrow the law. Nick Nyhart of Public Campaign, an opponent of the decision, says: “The movie was created with the idea of establishing a vehicle to chip away at the decision. It was part of a very clear strategy to undo McCain-Feingold.” CU head David Bossie confirms this contention, saying after the decision: “We have been trying to defend our First Amendment rights for many, many years. We brought the case hoping that this would happen… to defeat McCain-Feingold.” [Washington Post, 1/22/2010]

Entity Tags: US Supreme Court, Theodore (“Ted”) Olson, Sonia Sotomayor, Clarence Thomas, Anthony Kennedy, Antonin Scalia, Citizens United, Bipartisan Campaign Reform Act of 2002, Barack Obama, Samuel Alito, Ruth Bader Ginsburg, Stephen Breyer, New York Times, Nick Nyhart, Evan Tracey, David Bossie, Hillary Clinton, Jeffrey Toobin, Federal Election Commission, John Paul Stevens, Malcolm Stewart, John G. Roberts, Jr, Los Angeles Times

Timeline Tags: Civil Liberties

Jan Witold Baran.Jan Witold Baran. [Source: Metropolitan Corporate Counsel]Author and law professor Jan Witold Baran cheers the Citizens United decision by the Supreme Court that allows virtually unlimited spending by corporations and labor unions in political campaigns (see January 21, 2010). Baran, who alerts readers that he filed an amicus curiae brief with the Court in favor of plaintiff Citizens United, characterizes the ruling as allowing “corporations and unions [to] spend money on political advertising that urges the election or defeat of a candidate for public office.” He cites President Obama’s warning that the decision will unleash a “stampede of special-interest money in our politics” (see January 24, 2010), and derides that warning. He reminds readers that the decision retains the ban on direct contributions by corporations and unions, and that corporations and unions may not “spend money in cahoots with political parties,” but must remain “independent” and not coordinate with candidates or their campaigns. He also tells readers that the decision mandates disclosure, saying that the ruling “upheld the laws that require any corporate or union spender to file reports with the Federal Election Commission within 24 hours of spending the first dime.” Because of these retentions, Baran writes, there will be no “stampede of special-interest money.” The ruling will put an end to so-called “issue ads,” Baran predicts (see March 27, 1990 and June 25, 2007), the ads that either support or attack an issue and then urge the viewer to contact their congressperson. Because of the new ruling, the ads can now exhort viewers to vote for one candidate or against another because of the issues. Baran goes on to write, “There is also no factual basis to predict that there will be a ‘stampede’ of additional spending.” Twenty-six states and the District of Columbia already have laws permitting some corporate and union spending, he says, and notes: “There have been no stampedes in those states’ elections. Having a constitutional right is not the same as requiring one to exercise it, and there are many reasons businesses and unions may not spend much more on politics than they already do. As such, the effect of Citizens United on the 2010 campaigns is debatable.” He says that the ruling is primarily a blowback against Congress’s meddlesome penchant to restrict “campaign speech.… Congress interpreted its power to regulate campaigns as a license to limit, restrict, burden, and confuse anyone who wished to engage in political campaigns.” Now, he says, the Court has reminded Congress that the First Amendment trumps its ability to regulate (see January 21, 2010 and January 22, 2010). The ruling is “a breath of fresh air” for everyone except Washington lawyers, Baran says, and concludes: “The history of campaign finance reform is the history of incumbent politicians seeking to muzzle speakers, any speakers, particularly those who might publicly criticize them and their legislation. It is a lot easier to legislate against unions, gun owners, ‘fat cat’ bankers, health insurance companies, and any other industry or ‘special interest’ group when they can’t talk back.” [New York Times, 1/25/2010; Wiley Rein LLP, 2012] Many observers besides Obama predict dire consequences as a result of the Court ruling (see January 21, 2010, January 21, 2010, January 21, 2010, January 21, 2010, January 21, 2010, January 21, 2010, January 21-22, 2010, January 21, 2010, and January 26, 2010). And unfortunately for Baran’s predictions, a March 2010 appeals court verdict (see March 26, 2010) will join with the Citizens United ruling, particularly a loophole in the ruling (see February 27, 2010), to unleash just the kind of corporate spending that Baran says would never happen.

Entity Tags: US Supreme Court, Barack Obama, Jan Witold Baran, Federal Election Commission

Timeline Tags: Civil Liberties

The Washington, DC, Circuit Court of Appeals unanimously holds that provisions of the Federal Election Campaign Act (FECA—see February 7, 1972, 1974, and May 11, 1976) violate the First Amendment in the case of a nonprofit, unincorporated organization called SpeechNow.org. SpeechNow collects contributions from individuals, but not corporations, and attempted to collect contributions in excess of what FECA allows. In late 2007, SpeechNow asked the Federal Election Commission (FEC) if its fundraising plans would require it to register as a political committee, and the FEC responded that the law would require such registration, thus placing SpeechNow under federal guidelines for operation and fundraising. In February 2008, SpeechNow challenged that ruling in court, claiming that the restrictions under FECA were unconstitutional. FECA should not restrict the amount of money individuals can donate to the organization, it argued, and thusly should not face spending requirements. It also argued that the reporting limits under FECA are unduly burdensome. The district court ruled against SpeechNow, using two Supreme Court decisions as its precedents (see January 30, 1976 and December 10, 2003), and ruled that “nominally independent” organizations such as SpeechNow are “uniquely positioned to serve as conduits for corruption both in terms of the sale of access and the circumvention of the soft money ban.” SpeechNow appealed that decision. The appeals court reverses the decision, stating that the contribution limits under FECA are unconstitutional as applied to individuals. The reporting and organizational requirements under FECA are constitutionally valid, the court rules. The appeals court uses the recent Citizens United ruling as justification for its findings on contribution limits (see January 21, 2010). [New York Times, 3/28/2010; Federal Elections Commission, 2012; Moneyocracy, 2/2012] The FEC argued that large contributions to groups that made independent expenditures could “lead to preferential access for donors and undue influence over officeholders,” but Chief Judge David Sentelle, writing for the court, retorts that such arguments “plainly have no merit after Citizens United.” Stephen M. Hoersting, who represents SpeechNow, says the ruling is a logical and welcome extension of the Citizens United ruling, stating, “The court affirmed that groups of passionate individuals, like billionaires—and corporations and unions after Citizens United—have the right to spend without limit to independently advocate for or against federal candidates.” [New York Times, 3/28/2010] Taken along with another court ruling, the SpeechNow case opens the way for the formation of so-called “super PACs,” “independent expenditure” entities that can be run by corporations or labor unions with monies directly from their treasuries, actions that have been banned for over 60 years (see 1925 and June 25, 1943). The New York Times will later define a super PAC as “a political committee whose primary purpose is to influence elections, and which can take unlimited amounts of money, outside of federal contribution limits, from rich people, unions, and corporations, pool it all together, and spend it to advocate for a candidate—as long as they are independent and not coordinated with the candidate.” Super PACs are not required by law to disclose who their donors are, how much money they have raised, and how much they spend. CNN will later write, “The high court’s decision allowed super PACs to raise unlimited sums of money from corporations, unions, associations, and individuals, then spend unlimited sums to overtly advocate for or against political candidates.” OpenSecrets, a nonpartisan organization that monitors campaign finance practices, later writes that the laws underwriting Super PACs “prevent… voters from understanding who is truly behind many political messages.” [New York Times, 3/28/2010; Federal Elections Commission, 2012; OpenSecrets (.org), 2012; CNN, 3/26/2012; New York Times, 5/22/2012]

Entity Tags: Stephen M. Hoersting, New York Times, Federal Election Commission, Federal Election Campaign Act of 1972, OpenSecrets (.org), David Sentelle, CNN, SpeechNow (.org)

Timeline Tags: Civil Liberties, 2012 Elections

Attorney Karl Crow, one of the leaders of the Themis project.Attorney Karl Crow, one of the leaders of the Themis project. [Source: Little Sis (.org)]Charles and David Koch, the oil billionaires who are behind the conservative tea party movement (see 1940 and After, 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, Late 2004, October 2008, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, September 2010, August 17, 2011 and October 4, 2011), begin to build a huge, nationwide database of conservative voters that they intend to use to drive conservative votes in elections, beginning with the 2012 Republican primaries and on to the November 2012 general presidential election. The database is nicknamed “Themis,” after the Greek goddess of divine law and order who imposes order on human affairs. According to The Guardian’s Ed Pilkington, “the Koch brothers are close to launching a nationwide database connecting millions of Americans who share their anti-government and libertarian views, a move that will further enhance the tycoons’ political influence and that could prove significant in next year’s presidential election.” Pilkington writes that Themis will bring together “the vast network of alliances” the brothers have formed over the last 20 years. [Politico, 10/10/2011; Guardian, 11/7/2011] Patrick Glennon of In These Times writes: “Email lists, phone numbers, and other contact information from disperse sources will merge into a comprehensive and streamlined political weapon. Purportedly, the database will also include extensive information relating to occupation and income levels, useful details for targeted fundraising initiatives.” [Politico, 10/10/2011] The database begins in April 2010, and is expected to be completed and functional by the end of 2011. Few details of the project are known; development leader Karl Crow, a Washington lawyer and longtime Koch advisor, refuses to speak about it, as do media representatives of Koch Industries. A member of a Koch affiliate organization who specializes in the political uses of new technology says in November 2011 that the project is almost ready to go live: “They are doing a lot of analysis and testing. Finally they’re getting Themis off the ground.” The project is intended to, Pilkington writes, “bring together information from a plethora of right-wing groups, tea party organizations, and conservative-leaning thinktanks. Each one has valuable data on their membership—including personal email addresses and phone numbers, as well as more general information useful to political campaign strategists such as occupation, income bracket, and so on. By pooling the information, the hope is to create a data resource that is far more potent than the sum of its parts. Themis will in effect become an electoral roll of right-wing America, allowing the Koch brothers to further enhance their power base in a way that is sympathetic to, but wholly independent of, the Republican Party.” The specialist tells Pilkington, “This will take time to fully realize, but it has the potential to become a very powerful tool in 2012 and beyond.” Themis is modeled in part on a project called Catalyst, a voter list that compiled and shared data about progressive groups and campaigns (see Late 2004 and After) and helped Democrats regain momentum after the 2004 defeat of presidential candidate John Kerry (D-MA). [Politico, 10/10/2011; Guardian, 11/7/2011; In These Times, 11/8/2011] The 2008 Obama campaign used social media outreach techniques to augment Catalyst’s database. Themis apparently incorporates many of those social-media and other interactive features in its construction. [The Kernel, 12/19/2011] Josh Hendler, the former director of technology of the Democratic National Committee (DNC), tells Pilkington that Themis could do for the GOP what Catalyst helped do for the Democrats. “This increases the Koch brothers’ reach,” he says. “It will allow them to become even greater coordinators than they are already—with this resource they become a natural center of gravity for conservatives.” Mary Boyle of the political watchdog group Common Cause says of the reclusive brothers, “What makes them unique is that they are not just campaign contributors; they are a vast political network in their own right.” Themis will only deepen the Koch brothers’ control of American right-wing politics, Pilkington observes. Politico’s Kenneth Vogel writes that the Kochs intend to spend at least $200 million in 2012 on the Republican presidential campaign and other related activities. Pilkington writes: “Their potential to sway the electorate through the sheer scale of their spending has been greatly enhanced by Citizens United, last year’s controversial ruling by the US Supreme Court that opened the floodgates to corporate donations in political campaigns. The ruling allows companies to throw unlimited sums to back their chosen candidates, without having to disclose their spending. That makes 2012 the first Citizens United presidential election, and in turn offers rich pickings to the Koch brothers.” Themis will help the Kochs “micro-target” voters and potential fundraisers. Pilkington writes that it is reasonable to assume that Koch-funded lobbying organizations such as Americans for Prosperity and FreedomWorks are part of Themis, as are Koch-funded think tanks such as the Heritage Foundation. “Between them, they have tentacles that extend to millions of voters,” Pilkington writes. Liberal reporter and blogger Lee Fang says the impact of Themis and the Koch funding on the 2012 presidential campaign will be immense: “This will be the first major election where most of the data and the organizing will be done outside the party nexus. The Kochs have the potential to outspend and out-perform the Republican Party and even the successful Republican candidate.” [Politico, 10/10/2011; Guardian, 11/7/2011; In These Times, 11/8/2011]

Entity Tags: Charles Koch, 2008 Obama presidential election campaign, Ed Pilkington, Americans for Prosperity, Catalyst, David Koch, Themis, Republican Party, Karl Crow, Josh Hendler, Patrick Glennon, Kenneth Vogel, Lee Fang, Mary Boyle, John Kerry, FreedomWorks

Timeline Tags: Civil Liberties, 2012 Elections

The exterior of the St. Regis Resort in Aspen, Colorado.The exterior of the St. Regis Resort in Aspen, Colorado. [Source: Real Aspen (.com)]The reclusive but highly influential Charles Koch, of the Koch brothers oil empire (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, and July 3-4, 2010), holds a private meeting with some 200 wealthy financial and political figures at the exclusive St. Regis Resort in Aspen, Colorado. The meeting is designed to bring the participants together to combat what Koch calls “the threats posed to American freedom and prosperity” by Democrats and the Obama administration. To that end, many of the sessions in the two-day event target methods and plans to influence and manipulate the upcoming 2010 midterm elections. The meeting is highly secretive, with participants warned not to discuss the proceedings with anyone, especially members of the media, but in August, the liberal news Web site Think Progress will obtain a copy of a September 2010 memo from Koch that contains the June 2010 event program. The various events include:
bullet a seminar on “The Bankrupting of America”;
bullet a seminar on the “regulatory assault” on environmental concerns and how to further business goals by defeating environmental regulations;
bullet a seminar on how to influence universities and colleges to “advance liberty”;
bullet a seminar on how to “micro-target” the electorate in order to win elections for conservative Republican candidates;
bullet a seminar on “The Threats to American Freedom and Prosperity” conducted by Koch himself;
bullet “Understanding the Threats We Face,” a seminar moderated by Wall Street Journal reporter Stephen Moore (see May 6, 2006), Ramesh Ponnuru of the National Review, Phil Kerpen of Americans for Prosperity (AFP—see Late 2004), and Peter Wallinson of the far-right American Enterprise Institute (AEI);
bullet a seminar on “An Integrated Strategy to Face These Threats,” moderated by Koch’s senior assistant Richard Fink;
bullet an evening address, “Is America On the Road to Serfdom?” by former Fox News talk show host Glenn Beck;
bullet a seminar, “We’re Spending Too Much,” on how to lower government spending, conducted by Russ Roberts of the far-right libertarian Mercatus Center;
bullet a seminar, “Understanding This Year’s Electorate,” by journalist and AEI fellow Michael Barone;
bullet a follow-up seminar on how to “Fram[e] the Debate on Spending” for the elections, moderated by members of AEI and the Mercatus Center;
bullet a seminar, “Mobilizing Citizens for November,” featuring Tim Phillips, the head of AFP (see August 6, 2009) and Karl Crow, the head of Themis, the Koch-funded computer database being used in “micro-targeting” voters (see April 2010 and After);
bullet a seminar hosted by Arthur Brooks of AEI on how to frame the “fight” as one between “free enterprise and Big Government”;
bullet a seminar on how best to target participants’ philanthropic gifting;
bullet a seminar on “reforming” K-12 public and charter schools;
bullet a seminar on impacting judicial elections in several key states;
bullet a seminar on transitioning from the 2010 elections to the 2012 presidential elections and how “supporters of economic freedom” can “start planning today” for that election;
bullet a final evening address, “What’s Ahead for America?” by noted neoconservative columnist and Fox News pundit Charles Krauthammer.
The event features David Chavern, a senior official at the US Chamber of Commerce, one of the entities contributing the most funding to conservative political organizations (see August 2, 2010, September 13-16, 2010, and October 2010). Think Progress’s Lee Fang will write: “In an election season with the most undisclosed secret corporate giving since the Watergate-era, the memo sheds light on the symbiotic relationship between extremely profitable, multi-billion dollar corporations and much of the conservative infrastructure. The memo describes the prospective corporate donors as ‘investors,’ and it makes clear that many of the Republican operatives managing shadowy, undisclosed fronts running attack ads against Democrats were involved in the Koch’s election-planning event.” Many of the “investors” listed as attending or participating in the events include executives from health care corporations; executives from fast-food and other food-industry executives who have fought against providing health insurance to their employees; an array of banking and financial executives; and a number of energy industry executives. Fred Malek, who serves as the top fundraiser for a $56 million attack ad campaign against Democrats (see Mid-October 2010), attends, as does Heather Higgins of the Independent Women’s Forum, another organization that has spent millions opposing health-care reform. Many of the election-focused seminars address how to take advantage of the Citizens United ruling that lifted restrictions on corporate election spending (see January 21, 2010). The Aspen meeting, as with earlier meetings, is managed by Kevin Gentry, a Koch Industries executive and Washington lobbyist. [Think Progress, 8/23/2010; Koch, 9/24/2010 pdf file]

Entity Tags: David Chavern, Tim Phillips, Stephen Moore, St. Regis Resort, Glenn Beck, Charles Koch, Arthur Brooks, Fred Malek, Charles Krauthammer, Russ Roberts, Think Progress (.org), Ramesh Ponnuru, Kevin Gentry, Richard Fink, Heather Higgins, Lee Fang, Karl Crow, Obama administration, Phil Kerpen, Michael Barone, Peter Wallinson

Timeline Tags: Civil Liberties

The advocacy wing of the Americans for Prosperity (AFP) Foundation, founded by right-wing billionaire David Koch in 2004 (see Late 2004 and August 30, 2010), holds a weekend summit called “Texas Defending the American Dream” in Austin, Texas.
Koch-Funded, Koch Brand Not in Evidence - Neither David Koch nor his brother, Charles, attend the affair, and the name Koch is not in evidence. An advertisement for the event portrays it as a populist uprising against vested corporate power, stating: “Today, the voices of average Americans are being drowned out by lobbyists and special interests. But you can do something about it.” The ad makes no mention that the event is funded by Koch Industries, the second-largest private corporation in the US. Of Americans for Prosperity, Obama adviser David Axelrod says, “What they don’t say is that, in part, this is a grassroots citizens’ movement brought to you by a bunch of oil billionaires.”
Funding and Training the Tea Parties - Koch Industries has long denied that it has any connection to tea party organizations, and has denied that either the firm or the Koch brothers have funded any tea party groups (see February 27, 2009 and April 15, 2009). David Koch has denied ever being approached by tea party representatives. But at the Austin event, event organizer Peggy Venable—an AFP employee who has worked for Koch-funded political groups since 1994—tells the crowd, “We love what the tea parties are doing, because that’s how we’re going to take back America!” She calls herself one of the earliest members of the tea party movement, telling a reporter, “I was part of the tea party before it was cool!” AFP, she says, is in business to help “educate” tea party activists on policy details and to train them for further activism so that their political energy can be channelled “more effectively.” AFP has provided tea party organizers with lists of elected Democrats to target. Of the Kochs, she says: “They’re certainly our people. David’s the chairman of our board. I’ve certainly met with them, and I’m very appreciative of what they do.”
'Victory or Death!' - Some 500 people attend the event, which features training seminars for “tea party” activists around the state and a series of speakers launching blunt attacks against President Obama and his administration. Venable warns the attendees that the Obama administration has “a socialist vision for this country.” She gives the Texas AFP “Blogger of the Year” award to a woman named Sibyl West, who recently called Obama the nation’s “cokehead in chief.” Featured speaker Janine Turner, an actress best known for her role in the TV series Northern Exposure, tells the audience: “They [Obama and the Democratic Party] don’t want our children to know about their rights. They don’t want our children to know about a God!” Former Texas Solicitor General Ted Cruz tells the crowd that Obama is “the most radical president ever to occupy the Oval Office,” and has a hidden agenda: “the government taking over our economy and our lives.” Defeating Obama and his “secret agenda” is, Cruz says, “the epic fight of our generation!” As the crowd gives him a standing ovation, Cruz shouts the words said by a Texan at the Alamo: “Victory or death!” [New Yorker, 8/30/2010]

Entity Tags: Janine Turner, Barack Obama, Americans for Prosperity, Charles Koch, David Koch, Obama administration, Sibyl West, David Axelrod, Koch Industries, Ted Cruz, Peggy Venable

Timeline Tags: Domestic Propaganda

Senate Democrats are unable to break a filibuster by Senate Republicans that is blocking passage of the DISCLOSE Act.
Act Would Mandate Disclosure of Donors - The DISCLOSE Act—formally the Democracy Is Strengthened by Casting Light On Spending in Elections (DISCLOSE) Act—would overturn many elements of the Supreme Court’s controversial Citizens United decision that allows virtually unlimited and anonymous political spending by corporations and other entities (see January 21, 2010). If passed, it would have created new campaign finance disclosure requirements and made public the names of “super PAC” contributors (see March 26, 2010). Individuals, corporations, labor unions, and tax-exempt charitable organizations would, under the act, report to the Federal Election Commission (FEC) each time they spend $10,000 or more on campaign-related expenditures. Additionally, all outside groups, including “super PACs,” would have to report the names of donors. Moreover, the legislation would provide for so-called “Stand By Your Ad” requirements mandating that super PACs and other outside campaign groups producing political advertisements disclose the top funders in the ad. The CEO or highest-ranking official of an organization would, under the act, have to appear in the ad and officially “approve” the message. [Open Congress, 6/29/2010; OMB Watch, 7/24/2012]
Unbreakable Filibuster - Even public support from President Obama fails to sway enough Republican senators to vote against the filibuster, as did changes made to the bill by sponsor Charles Schumer (D-NY) designed to assuage some of Republicans’ concerns about the bill. The bill has already passed the House, shepherded through under Democratic leadership against Republican opposition. Democrats have a slim majority in the Senate also, but Senate rules allow the minority to mount filibusters that require 60 votes to overcome, and a number of Republicans would need to break from the Republican pack to vote down the filibuster. Additionally, some conservative senators such as Ben Nelson (D-NE) have not publicly stated their support for the bill. One Republican who had previously indicated she might vote for cloture (against the filibuster), Susan Collins (R-ME), dashed Democrats’ final hopes by saying she would not vote for cloture after all. “The bill would provide a clear and unfair advantage to unions while either shutting other organizations out of the election process or subjecting them to onerous reporting requirements that would not apply to unions,” says Collins spokesman Kevin Kelley. “Senator Collins believes that it is ironic that a bill aimed at curtailing special interests in the election process provides so many carve-outs and exemptions that favor some grass-roots organizations over others. This, too, is simply unfair.” Other so-called Republican moderates such as Olympia Snowe (R-ME) and Scott Brown (R-MA) have previously indicated they would not vote for cloture. Ironically, one of the “carve-outs” in the bill Schumer added was on behalf of the far-right National Rifle Association (NRA), an addition that Schumer says was made to placate Republicans. Schumer says that even if the bill does not pass now, attempts to reintroduce it will be made. The DISCLOSE Act “is one of the most important for the future of our democracy, not just for the next six months but for the next six decades,” he says. White House press secretary Robert Gibbs says: “I don’t know what the final vote will be tomorrow, but I know that you—if you had a sliver of Republicans that thought special-interest giving and corporate influence in elections was… part of the problem, then this bill would pass. Now we get to see who in the Senate thinks there’s too much corporate influence and too much special-interest money that dominate our elections and who doesn’t. I don’t know how it could be any clearer than that.” Senate Minority Leader Mitch McConnell (R-KY) retorts: “The DISCLOSE Act seeks to protect unpopular Democrat politicians by silencing their critics and exempting their campaign supporters from an all-out attack on the First Amendment (see January 21, 2010). In the process, the authors of the bill have decided to trade our constitutional rights away in a backroom deal that makes the Cornhusker Kickback look like a model of legislative transparency.” [Politico, 7/26/2010] The “Cornhusker Kickback” McConnell is referencing is a deal struck in late 2009 by Senate Majority Leader Harry Reid (D-NV) to win Nelson’s support for the Democrats’ health care reform package, in which Nebraska, Nelson’s state, would receive 100 percent government financing for an expansion of Medicare. [Las Vegas Sun, 12/20/2009]

Entity Tags: Harry Reid, Federal Election Commission, Charles Schumer, Ben Nelson, Barack Obama, US Supreme Court, US Senate, Susan Collins, Scott Brown, DISCLOSE Act of 2010, Olympia Snowe, Mitch McConnell, National Rifle Association, Robert Gibbs, Kevin Kelley

Timeline Tags: Civil Liberties

Liberal New York Times columnist Frank Rich writes an op-ed focusing on the billionaire Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, and October 4, 2011), the oil magnates who are the driving force behind the tea party movement. Rich writes that “even those carrying the Kochs’ banner may not know who these brothers are.” Rich, using information from historian Kim Phillips-Fein’s book Invisible Hands, notes that the Kochs are the latest in a long line of behind-the-scenes corporate manipulators “who have financed the far right (see September 2010 and August 17, 2011) ever since the du Pont brothers spawned the American Liberty League in 1934 to bring down” the Roosevelt administration (see August 23, 1934 and After). “You can draw a straight line from the Liberty League’s crusade against the New Deal ‘socialism’ of Social Security, the Securities and Exchange Commission, and child labor laws to the John Birch Society-Barry Goldwater assault on [the Kennedy administration] and Medicare (see 1962 and November 1963) to the Koch-Murdoch-backed juggernaut against our ‘socialist’ president,” Rich writes. “Only the fat cats change—not their methods and not their pet bugaboos (taxes, corporate regulation, organized labor, and government ‘handouts’ to the poor, unemployed, ill, and elderly). Even the sources of their fortunes remain fairly constant. Koch Industries began with oil in the 1930s and now also spews an array of industrial products, from Dixie cups to Lycra, not unlike DuPont’s portfolio of paint and plastics. Sometimes the biological DNA persists as well. The Koch brothers’ father, Fred (see 1940 and After), was among the select group chosen to serve on the Birch Society’s top governing body. In a recorded 1963 speech that survives in a University of Michigan archive, he can be heard warning of ‘a takeover’ of America in which Communists would ‘infiltrate the highest offices of government in the US until the president is a Communist, unknown to the rest of us.’ That rant could be delivered as is at any tea party rally today.” Rich also focuses on FreedomWorks (see 1984 and After, May 16, 2008, February 16-17, 2009, February 19, 2009 and After, February 27, 2009, March 13, 2009 and After, April 2009 and After, April 14, 2009, April 15, 2009, June 26, 2009, Late July, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 14, 2009, August 19, 2009, August 24, 2010, September 2010, September 12, 2010 and August 17, 2011), one of the two “major sponsor[s]” of the tea party movement, along with Americans for Prosperity (AFP—see Late 2004, October 2008, January 2009 and After, February 16, 2009, February 16-17, 2009, February 17, 2009, February 19, 2009 and After, April 2009 and After, April 8, 2009, May 29, 2009, July 23, 2009, July 27, 2009, August 5, 2009, August 6, 2009, August 6, 2009, August 10, 2009, August 14, 2009, October 2, 2009, November 2009, February 15, 2010, April 15, 2010, July 3-4, 2010, August 24, 2010, August 30, 2010, September 20, 2010 and August 17, 2011). Both FreedomWorks and AFP are heavily funded by the Koch brothers. Rich writes: “Tea partiers may share the Kochs’ detestation of taxes, big government, and [President] Obama. But there’s a difference between mainstream conservatism and a fringe agenda that tilts completely toward big business, whether on Wall Street or in the Gulf of Mexico, while dismantling fundamental government safety nets designed to protect the unemployed, public health, workplace safety, and the subsistence of the elderly.” Rich writes that the Koch brothers’ agenda is “inexorably… morphing into the GOP agenda,” and points to Republican luminaries such as incoming House Speaker John Boehner (R-MO) and tea party candidates such as Rand Paul (see March 27, 2010, May 17, 2010, October 25, 2010 and After, October 26, 2010 and November 10, 2010), Sharron Angle (see January 2010, Mid-May, 2010, Mid-June 2010, June 16, 2010 and September 18, 2010), and Joe Miller (see July 19, 2010, July 23, 2010, October 17, 2010, October 17, 2010 and October 18, 2010). “The Koch brothers must be laughing all the way to the bank knowing that working Americans are aiding and abetting their selfish interests,” Rich concludes. [New York Times, 8/28/2010]

Entity Tags: Rand Paul, Koch Industries, Sharron Angle, Joseph Wayne (“Joe”) Miller, Kim Phillips-Fein, John Birch Society, Barack Obama, Americans for Prosperity, American Liberty League, Charles Koch, John Boehner, David Koch, Fred Koch, FreedomWorks, Frank Rich

Timeline Tags: Domestic Propaganda

Charles and David Koch.Charles and David Koch. [Source: PRWatch (.org)]The New Yorker publishes a lengthy analysis of the Koch (pronounced “coke”) financial empire, and its long-time financial support for right-wing causes (see 1981-2010). The article, written by investigative reporter Jane Mayer, shows that Koch Industries, led by brothers David and Charles Koch, has donated over $250 million to Republican and conservative politicians and organizations since the mid-1990s. The Koch brothers are also well-known philanthropists, having given millions to New York City’s Metropolitan Opera, $100 million to the Lincoln Center’s New York State Theatre building, $40 million to the Sloan-Kettering Cancer Center, $20 million to the American Museum of Natural History, and $10 million to the Metropolitan Museum of Art.
Second-Largest Private Industry in US - Koch Industries, a $100 billion conglomerate, garners most of its profits from oil refineries and associated interests; it owns the firms that manufacture Brawny paper towels, Dixie cups, Georgia-Pacific lumber and paper products, Stainmaster carpet, and Lycra fabric. Koch Industries is the second largest private company in the US after Cargill, and taken together, the Koch brothers’ fortune of some $35 billion places them just behind Microsoft’s Bill Gates and Wall Street financier Warren Buffett as the nation’s richest people.
Longtime Libertarians - Personally, the Koch brothers espouse a libertarian philosophy—drastic reductions in corporate and personal taxes, huge cuts in government expenditures on social services, and widespread deregulation of industry, particularly environmental. Koch Industries was recently listed in the top 10 of US air polluters, and has for years funded organizations that oppose climate change, giving even more than ExxonMobil to organizations, foundations, and think tanks that work to derail or overturn climate change legislation. Koch funds so many different organizations that oppose various initiatives of the Obama administration that Washington insiders call the Koch ideological network the “Kochtopus.” While the Koch brothers have protested being characterized as major supporters of the right-wing agenda—David Koch has complained that the “radical press” is intent on making him and his brother into “whipping boys”—Charles Lewis, the founder of the Center for Public Integrity, says: “The Kochs are on a whole different level. There’s no one else who has spent this much money. The sheer dimension of it is what sets them apart. They have a pattern of lawbreaking, political manipulation, and obfuscation. I’ve been in Washington since Watergate, and I’ve never seen anything like it. They are the Standard Oil of our times.” The Kochs have embraced the pure free-market ideology of economist Friedrich von Hayek, who argued that any form of centralized government would lead to totalitarianism and that only complete, unregulated capitalism could ensure freedom. Many “tea party” supporters, such as Fox News host Glenn Beck, have openly embraced von Hayek’s ideals.
Inculcated Ideals of Anti-Communist Father - Both brothers are steeped in the anti-Communist, anti-government, minority-disparaging views of their father, Koch Industries co-founder Fred Koch (see 1940 and After).
Using the 'Tea Parties' - Conservative economist Bruce Bartlett, who has worked at a Koch-funded think tank, says that the Kochs are playing on the anti-government fervor of the “tea parties” to further their pro-business, libertarian agenda. “The problem with the whole libertarian movement is that it’s been all chiefs and no Indians,” Bartlett says. “There haven’t been any actual people, like voters, who give a crap about it. So the problem for the Kochs has been trying to create a movement.” With the emergence of the “tea parties,” Bartlett says, “everyone suddenly sees that for the first time there are Indians out there—people who can provide real ideological power. [The Kochs are] trying to shape and control and channel the populist uprising into their own policies.” A Republican campaign consultant who has worked for the Kochs says of the tea party movement: “The Koch brothers gave the money that founded it. It’s like they put the seeds in the ground. Then the rainstorm comes, and the frogs come out of the mud—and they’re our candidates!” The consultant says that the Kochs keep an extremely low profile, in part to avoid accusations that they are funding an “astroturf” movement (see April 15, 2009). A former Koch adviser says: “They’re smart. This right-wing, redneck stuff works for them. They see this as a way to get things done without getting dirty themselves.” Democratic political strategist Rob Stein, who has studied the conservative movement’s finances, says the Kochs are “at the epicenter of the anti-Obama movement. But it’s not just about Obama. They would have done the same to Hillary Clinton. They did the same with Bill Clinton. They are out to destroy progressivism.” Since a 2009 rally attended by David Koch (see November 2009), the brothers have all but explicitly endorsed the tea party movement, with David Koch praising it for demonstrating the “powerful visceral hostility in the body politic against the massive increase in government power, the massive efforts to socialize this country.” Echoing the sentiments of many tea party leaders, Charles Koch said in a newsletter sent out to Koch Industry employees that President Obama is comparable to Venezuelan strongman Hugo Chavez.
Strategy - Charles Koch told a reporter that “[t]o bring about social change” requires “a strategy” that is “vertically and horizontally integrated,” spanning “from idea creation to policy development to education to grassroots organizations to lobbying to litigation to political action.… We have a radical philosophy.” The Kochs launched their first “think tank,” the libertarian Cato Institute, in 1977 (see 1977-Present), which has been effective in promoting corporate tax cuts, deregulation, cuts in social spending, and in opposing governmental initiatives to combat climate change. Other Koch-funded institutes such as the Heritage Foundation and the Independent Women’s Forum have also publicly opposed efforts to combat climate change. History professor Naomi Oreskes, the author of a book, Merchants of Doubt, that chronicles attempts by American industries to manipulate public opinion on science, says that the Kochs have a vested interest in keeping the government from addressing climate change. “If the answer is to phase out fossil fuels,” she says, “a different group of people are going to be making money, so we shouldn’t be surprised that they’re fighting tooth and nail.” David Koch has said that though he doesn’t believe that any global warming effects have been caused by human activities, if indeed the globe is warming, it will benefit society by lengthening growing seasons in the Northern Hemisphere. Several years after founding Cato, the Kochs provided millions in funding to the Mercatus Center at George Mason University in Arlington, Virginia, which Stein describes as “ground zero for deregulation policy in Washington.” Mercatus is headed by Richard Fink, a Koch Industries lobbyist and president of several Koch-funded foundations. Mayer describes Fink as the chief political lieutenant of the Koch brothers. Mercatus was quite successful at having the Bush administration adopt a number of its deregulatory strategies, particularly environmental deregulation. Like Cato, critics of Mercatus accuse it of serving the brothers’ corporate needs while hiding behind the facade of a nonpartisan academic organization. “Ideas don’t happen on their own,” says Matt Kibbe, the president of FreedomWorks, a tea party advocacy group heavily funded by the Kochs (see April 14, 2009). “Throughout history, ideas need patrons.” FreedomWorks is one of many citizen activism groups founded and/or funded by the Kochs, usually masquerading as “grassroots” organizations started by “ordinary citizens” (see 1984 and After, 1997, and Late 2004).
Disrupting the Obama Administration - Since well before the 2008 presidential election, the Koch brothers have been involved in full-throated efforts to derail any policies or initiatives that would be launched by a Democratic president. In January 2008, Charles Koch wrote in the industry newsletter that America was on the verge of “the greatest loss of liberty and prosperity since the 1930s.” The Kochs have used their “astroturf” advocacy group, Americans for Prosperity (AFP), to great effect against the Obama administration, launching its efforts even before the November 2008 election (see October 2008 and January 2009 and After). Conservative activist Grover Norquist says that AFP’s August 2009 anti-health care rallies were instrumental in undermining Obama’s policy initiatives. Norquist says the rallies “discouraged deal-makers,” Republicans who otherwise might have considered cooperating with Obama and Congressional Democrats, and affected corporate donors to Washington lobbyists, steering millions into the hands of Republican lobbyists. [New Yorker, 8/30/2010]

Entity Tags: Matt Kibbe, Koch Industries, Naomi Oreskes, Richard Fink, Obama administration, New Yorker, Rob Stein, Jane Mayer, Independent Women’s Forum, Mercatus Center, Heritage Foundation, Cato Institute, Center for Public Integrity, Bruce Bartlett, Americans for Prosperity, Barack Obama, Charles Koch, Hillary Clinton, David Koch, FreedomWorks, Friedrich von Hayek, Charles Lewis, Glenn Beck, Grover Norquist, Fred Koch

Timeline Tags: Domestic Propaganda

The reclusive but highly influential Charles Koch, of the Koch brothers oil empire (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, and August 30, 2010), pens an 18-page memo inviting some 210 wealthy American corporate and political leaders to a meeting with him and his brother David at the exclusive Rancho Las Palmas resort in Rancho Mirage, California, in January 2011. The theme is how to “combat… the multitude of public policies that threaten to destroy America as we know it… it is up to us to combat what is now the greatest assault on American freedom and prosperity in our lifetimes.… We must stop—and reverse—this internal assault on our founding principles.” The meeting will help plan how to use the prospective Republican gains in the November 2010 elections to “foster a renewal of American free enterprise and prosperity.” The memo references a June 2010 meeting in Aspen, Colorado, where strategies to manipulate and influence the 2010 elections were codified (see June 26-28, 2010). “In response, participants committed to an unprecedented level of support,” Koch writes. He includes the program from the June 2010 meeting. [Think Progress, 8/23/2010; Koch, 9/24/2010 pdf file]

Entity Tags: Rancho Las Palmas, David Koch, Charles Koch

Timeline Tags: Civil Liberties

A conservative super PAC, American Action Network (AAN), launches a $19 million advertizing blitz against Democrats in 22 House districts. AAN was founded by former US Senator Norm Coleman (R-MN) and former Nixon administration official Fred Malek. AAN has already pumped $5 million into races featuring Republican Senate candidates. Founded in February, the group was formed, according to Malek, to “counter what the labor unions are doing on the Democratic side.” The group is split into two parts: the Action Forum, a 501(c)(3), which allows donations to be tax-deductible but limits political activities, and the Action Network, a 501 (c)(4), in which contributions are not deductible or disclosed but the group can advocate for political causes. AAN president Rob Collins says: “This Democrat-controlled Congress has already voted for higher taxes and promises next month to raise taxes on America’s families and businesses. This is simply unacceptable and something we wanted to call attention to.” AAN is part of a larger network of conservative super PACs (see March 26, 2010), including American Crossroads, that plans to spend as much as $50 million on Congressional races. AAN shares office space with American Crossroads. [Politico, 10/13/2010; New York Times, 10/17/2010; CT Mirror, 10/17/2010]
Objectionable Ads - The AAN ads airing in Connecticut draw fire after accusing Democrats Christopher Murray (D-CT) and Jim Himes (D-CT) of voting to provide free health care to illegal immigrants and Viagra to sex offenders. Murray accuses AAN of being linked to a number of Republicans in the Bush administration, and asks who is providing the money for the ads. Campaign finance law allows the donors to organizations such as AAN to remain anonymous. “This is one of the biggest TV buys this district has ever seen,” Murphy says. “And what we deserve to know is who is standing behind it. I want to know. I think that’s what the voters want as well.… These ads on TV right now, fronted by a shadowy, anonymous group of billionaire donors and multi-national corporations are a clear sign of what the difference is in this election.” An AAN spokesman refuses to discuss the finances behind the organization, saying only: “What we do is we comply with the letter of the law. That’s all we have to offer about that.” Murray calls the ad’s allegations “laughable.” Both claims have been debunked by independent fact-checking organizations, though Murray’s opponent Sam Caligiuri (R-CT) says the ad’s content is “verifiable,” and says even if the ad is questionable, Murray has told lies of his own about Caligiuri.
AAN Co-Founder Involved in Criminal Activities as Nixon Administration Official - CT Mirror notes that Malek, a Wall Street millionaire and the co-founder of AAN, was not only a member of the Nixon administration (whose crimes and excesses concerning the Watergate scandal led to a round of campaign finance reforms—see 1974 and May 11, 1976), but was also involved in a recent investment scandal. The New York Times goes further in its examination of Malek, noting that he was heavily involved in the 1972 “Townhouse operation” that raised illegal corporate cash in so-called “slush funds” and distributed the monies in key Senate races (see December 1, 1969, Early 1970, March 23, 1971, and August 18, 1974). Malek, the White House personnel chief in 1972, helped dispense illegal patronage deals to Nixon donors and served as deputy director of CREEP (the Committee to Re-Elect the President), an organization heavily involved in criminal activities. And the liberal news Web site Think Progress notes that Malek was the Nixon administration’s unofficial “Jew counter” (see July 3, 1971 and September 1971) and was part of the administration’s illegal persecution of Jews who worked in the federal government. During the Watergate investigation, Malek admitted that some of CREEP’s activities might have “bordered on the unethical.” Malek worked with American Crossroads co-founder Karl Rove during the Nixon administration, when Rove worked to re-elect Nixon as the executive director of the College Republican National Committee. Malek is a member of the Weaver Terrace Group, an informal amalgamation of Republican strategists from “independent” groups who regularly meet, trade political intelligence, and make joint fund-raising trips. The group is named after the street where Rove used to live. Former Watergate prosecutor Roger Witten says: “It creates all the appearances of dirty dealings and undue influence because our candidates are awash in funds the public is ignorant about. This is the problem that was supposedly addressed after Watergate.” [New York Times, 10/17/2010; Think Progress, 10/18/2010]

Entity Tags: Jim Himes, Christopher Murray, CT Mirror, American Crossroads, American Action Network, Fred Malek, Weaver Terrace Group, Sam Caligiuri, Committee to Re-elect the President, Think Progress (.org), Nixon administration, Rob Collins, Norm Coleman, Roger Witten, Karl C. Rove, New York Times

Timeline Tags: Civil Liberties

Tim Phillips (L) and David Koch, together at an Americans for Prosperity event.Tim Phillips (L) and David Koch, together at an Americans for Prosperity event. [Source: Americans for Prosperity]Oil billionaire and conservative activist David Koch (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, and September 24, 2010) attends the 112th Congress’s swearing-in ceremony, accompanied by Tim Phillips, the head of the Koch-financed Americans for Prosperity (AFP—see May 29, 2009) and a number of current and former Koch Industries lobbyists, including Nancy Pfotenhauer. The event marks the ascendance of Republicans to the majority of the House, and the selection of John Boehner (R-OH) as speaker of the House. After the ceremony, Koch asks Frank Guinta (R-NH), a freshman Republican and “tea party” member elected in part by lavish AFP spending on his behalf, if he will attend a party that Koch is throwing for Republican Congressional members. Guinta affirms that he will attend. Lee Fang, a reporter for Think Progress who observes the Koch-Guinta conversation, speaks to Koch after the two conclude their discussion. Fang identifies himself as a Think Progress reporter and asks Koch what he expects from the Boehner-led Congress; Koch replies, “Well, cut the hell out of spending, balance the budget, reduce regulations, and, uh, support business.” Phillips immediately intervenes, identifying Fang to Koch as “a good blogger on the left, we’re glad to have him—” but Fang continues interviewing Koch. During the relatively brief interview, Phillips repeatedly attempts to push Fang’s cameraman Scott Keyes away from Koch, and shouts into Keyes’s camera, in an apparent attempt to disrupt the interview. However, Koch is cooperative with being interviewed. Koch is apparently proud of the work being done by AFP and says, “We’re going to do more too in the next couple of years.” Fang asks Koch if he is proud of the tea party movement, and Koch replies: “Yeah. There are some extremists there, but the rank and file are just normal people like us. And I admire them. It’s probably the best grassroots uprising since 1776 in my opinion.” Koch is hesitant to answer questions about “climate change,” agreeing only that “[c]limate does fluctuate,” but refusing to answer questions about the effect of carbon pollution on the climate. Instead, he says that any attempts to regulate carbon emissions will “really damage the economy.” Fang concludes by asking about the Citizens United decision that allows unlimited corporate spending on elections (see January 21, 2010). According to Fang, Koch looks uncomfortable discussing the subject and is quite reticent. Koch refuses to answer when Fang asks him about a recent meeting he sponsored with former Fox News talk show host Glenn Beck “and several other conservatives” (see June 26-28, 2010). While Phillips continues to interrupt and chide Fang for asking about the Citizens United decision, Koch refuses to answer Fang’s question, “Could you tell the public what you discussed at that meeting?” [Think Progress, 1/5/2011; Think Progress, 1/6/2011; Think Progress, 1/7/2011; Think Progress, 1/10/2011]

Entity Tags: Koch Industries, David Koch, Americans for Prosperity, Frank Guinta, John Boehner, Scott Keyes, Glenn Beck, Tim Phillips, Nancy Pfotenhauer, Lee Fang

Timeline Tags: Civil Liberties

The government watchdog and campaign finance advocacy group Common Cause asks the Supreme Court to explain why Justice Clarence Thomas did not completely disclose the nature of his participation in a 2008 retreat hosted by Charles and David Koch, the influential oil billionaires and conservative advocates (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, and October 4, 2011). According to a Court spokesperson, Thomas made a “brief drop-by” at a four-day event in Palm Springs, California, held in January 2008, and gave a talk. But disclosure reports filed by Thomas show that he was reimbursed an undisclosed amount for four days of “transportation, meals, and accommodations” over the weekend of the retreat. The reimbursement came from the Federalist Society, an influential conservative legal group. Today Common Cause sends a letter to the Court asking for “further clarification” as to why the two statements are at odds. Common Cause official Arn Pearson says, “I don’t think the explanation they’ve given is credible.” If Thomas’s visit was a “four-day, all-expenses paid trip in sunny Palm Springs,” Thomas should have reported it as a gift under federal law. The Court, the Federalist Society, and Koch Industries all refuse to comment on the issue. Common Cause has said that because of Thomas’s past appearances at the Koch retreats, and the conservative political work done by his wife Virginia Thomas (see November 2009 - November 2010 and February 4, 2011), he should have recused himself from the 2010 Citizens United decision (see January 21, 2010). Common Cause notes that both Thomas and Justice Antonin Scalia have appeared at Koch-hosted retreats. Both Thomas and Scalia voted as part of the 5-4 majority that decided the case. Political analysts say the Koch brothers have been some of the main beneficiaries of the decision. [New York Times, 2/14/2011]

Entity Tags: David Koch, Antonin Scalia, Arn Pearson, Charles Koch, Federalist Society, US Supreme Court, Virginia (“Ginni”) Thomas, Common Cause, Clarence Thomas

Timeline Tags: Civil Liberties

The Center for Responsive Politics (CRP), a nonpartisan campaign finance watchdog organization, finds that independent organizations supporting Republicans and Democrats are spending unprecedented amounts of money on supporting, or more often attacking, candidates for office. The huge rise in spending comes as a direct result of the Citizens United decision that allowed corporations and labor unions to spend unlimited amounts of money on campaign donations (see January 21, 2010). While organizations are spending huge amounts of money on both sides of the political divide, spending for conservative candidates outweighs spending on liberal candidates by an 8-1 margin. CRP’s analysis finds that the increased spending helped Republicans retake the US House of Representatives in 2010, and is having a long-term effect on the nation’s campaign and election systems. [Center for Responsive Politics, 5/5/2011; Think Progress, 5/6/2011]
Most Democratic Spending Comes from Unions - Labor unions gave over $17.3 million in independent expenditures opposing Republican candidates. The union contributing the most: the American Federation of State County and Municipal Employees (AFSCME), with over $7 million. The National Education Association (NEA) formed a “super PAC” (see March 26, 2010) that spent $3.3 million on election activities. Super PACs must disclose their donors and the amounts donated (see 2000 - 2005), but an array of groups under the 501(c) tax laws do not have to disclose that information (see September 28, 2010).
Corporations Spend Lavishly for Republicans - While corporations donated some money to Democratic causes, most of their money went to Republicans. Corporations gave over $15 million to super PACs such as American Crossroads, which supports an array of conservative candidates. CRP notes that conservative groups that do not have to disclose their donors spent $121 million, and corporations and wealthy individuals were the likely sources of almost all of that money.
Secret Donations on the Rise - In the 2006 elections, the percentage of spending from groups that do not disclose their donors was 1 percent. In 2010, it was 47 percent. “Nonprofit” organizations that can legally hide their donors and donations increased their spending from zero percent in 2006 to 42 percent in 2010. For the first time in over 20 years, outside interest groups outspent party committees, by $105 million. The amount of independent expenditure and electioneering communication spending by outside groups has gone up 400 percent since 2006. And 72 percent of political advertising spending by outside groups in 2010 came from sources that were prohibited from spending money in 2006. [Center for Responsive Politics, 5/5/2011]

Entity Tags: American Crossroads, American Federation of State County and Municipal Employees, US House of Representatives, National Education Association, Center for Responsive Politics

Timeline Tags: Civil Liberties

Lawyer James Bopp Jr. forms a super PAC, Republican Super PAC Inc., in order to make unlimited financial contributions towards “independent” expenditures in support of Republican candidates in the November 2012 elections. Bopp is joined by Roger Villere, the chairman of the Louisiana Republican Party. Bopp is known for arguing high-profile cases against abortion rights (see November 1980 and After and Mid-2004 and After) and campaign finance regulations (see December 10, 2003 and Mid-2004 and After). He was the lawyer who first worked with the lobbying and advocacy group Citizens United, whose lawsuit gave the Supreme Court the opportunity to greatly deregulate campaign finance law (see January 10-16, 2008, March 24, 2008, and January 21, 2010). According to an email from Bopp and Villere, the Republican Super PAC will coordinate with other independent groups “to bridge gaps in the independent campaigns supporting Republican candidates.… The best way to neutralize President Obama’s unprecedented $1 billion political war chest and the political spending by labor unions and wealthy Democrats is to build a super fund-raising infrastructure for independent expenditure spending.” [New York Times, 5/16/2011] The majority of the money raised and spent on behalf of candidates by super PACs has gone to support Republicans, and not President Obama or Democratic candidates (see January 21-22, 2010, March 26, 2010, August 2, 2010, September 13-16, 2010, September 21 - November 1, 2010, September 28, 2010, October 2010, Around October 27, 2010, November 1, 2010, (May 4, 2011), and May 5, 2011).

Entity Tags: Roger Villere, James Bopp, Jr, US Supreme Court, Republican Super PAC Inc, Barack Obama

Timeline Tags: Civil Liberties

A new “super PAC” aligned with presidential candidate Mitt Romney (R-MA) is being formed by a group of Romney backers and former Romney campaign aides, according to a report by the Washington Post. Super PACs are political organizations that exist to influence elections, which take unlimited amounts of outside money from donors, including individuals, unions, and corporations, and pool that money to advocate for or against a candidate (see March 26, 2010). By law, super PACs are supposed to operate independently of a candidate’s official campaign organization.
Restore Our Future - The Romney super PAC, “Restore Our Future” (ROF), is one of a number of such organizations created in the aftermath of the US Supreme Court’s Citizens United ruling (see January 21, 2010). Restore Our Future is apparently the first super PAC to form specifically in support of one of the 2012 presidential contenders, with the sole exception of Priorities USA Action, a super PAC in support of President Obama. ROF treasurer Charles R. Spies, who served as Romney’s general counsel in his 2008 presidential effort, refuses to disclose how much the organization has raised, or who is donating. Spies merely says: “This is an independent effort focused on getting Romney elected president. We will do that by focusing on jobs and his ability to fix the economy.” A Romney campaign aide says that a Federal Election Commission (FEC) filing coming up in July will show the organization having raised some $20 million. A major Romney donor who refuses to allow his identity to be revealed says, “We just want to show that we’ve got more dough than anyone.” The Romney campaign’s communication director, Gail Gitcho, says the campaign welcomes any outside support, and points to the Obama campaign as the largest fundraiser in the race, saying, “We are pleased that independent groups will be active in fighting this entrenched power [the Obama campaign] so the country can get back to work.”
Leaders of ROF - Members of the ROF board of directors include Spies; Carl Forti, political director for Romney’s 2008 campaign; and Larry McCarthy, a member of the Romney media team in 2008. Forti is the co-founder of the Black Rock Group consulting firm and the political director of American Crossroads, a conservative super PAC expected to raise over $120 million for candidates in 2012. Neither Forti nor American Crossroads will discuss the role played by Forti in both organizations. ROF actually registered itself with the FEC in October 2010, but has remained unaffiliated and essentially dormant until recent weeks. Now ROF officials are briefing top donors about the organization’s plans and fundraising goals. Former Obama spokesman Bill Burton, the head of Priorities USA Action, says: “I’m not surprised that there’s even more money coming into this race to help Mitt Romney. He’s a pretty deeply flawed candidate; he’s going to need all the help he can get.” Dave Levinthal of the Center for Responsive Politics says of the super PACs: “The outside groups are akin to the biggest booster club you can imagine for a college football team. The club can’t give cars or gifts to the players, but they can do everything else possible to support them.… It’s a brand-new way to play politics.” [Washington Post, 6/23/2011] The Post fails to note many of the details about ROF’s senior officials. According to the Public Campaign Action Fund, Spies is not only a lawyer and a consultant, but a registered lobbyist for Clark Hill PLC, representing a chain of luxury casinos. ROF’s address as listed on its FEC filings is the same as Clark Hill’s Washington, DC, office. The Action Fund observes, referring to the Republican primary and the number of wealthy donors lined up behind each major candidate, “While [ROF] officially can’t coordinate with the Romney campaign, having lobbyists on your side is definitely a good way to boost one’s standing in the so-called ‘wealth primary.’” [Public Campaign Action Fund, 6/23/2011] The liberal news Web site Think Progress will soon note that McCarthy is a veteran advertising creator for Republican candidates, and was one of the strongest creative forces behind the infamous 1988 “Willie Horton” ad, which many considered to be extraordinarily racist (see September 21 - October 4, 1988). In 2010, McCarthy served as a media strategist for the American Future Fund, which launched attack ads attempting to link Democrats to the Park 51 community center in Manhattan, deemed by conservatives as the “Ground Zero Victory Mosque” and mischaracterized as a monument celebrating the 9/11 attacks. Those ads were decried by many as being bigoted against Muslims. McCarthy has brushed off criticism of his ads, and said the fact-checking organizations that found his ads to be flawed suffered from a pro-Democratic bias. Think Progress reporter Lee Fang will write that when he tried to find the American Future Fund office in Iowa, the address listed for the group turned out to be a UPS mailbox in a strip mall near an airport. Fang will write, “With a record of such secrecy and racist, anything-goes campaign tactics, one can expect Romney’s new outside group to be just as ugly in the presidential race.” [Politico, 10/29/2010; Think Progress, 6/27/2011]

Entity Tags: Charles R. Spies, Washington Post, Willard Mitt Romney, Carl Forti, American Future Fund, American Crossroads, 2012 Obama presidential election campaign, US Supreme Court, Bill Burton, Think Progress (.org), Public Campaign Action Fund, Larry McCarthy, Gail Gitcho, Federal Election Commission, Dave Levinthal, Lee Fang, Restore Our Future, Priorities USA Action, Mitt Romney presidential campaign (2012)

Timeline Tags: Civil Liberties, 2012 Elections

A dozen wealthy donors have contributed over half of the money collected by so-called “super PACs” in the first half of 2011, according to an analysis by USA Today. Super PACs are political organizations that exist to influence elections, which take unlimited amounts of outside money from donors, including individuals, unions, and corporations, and pool that money to advocate for or against a candidate (see March 26, 2010). By law, super PACs are supposed to operate independently of a candidate’s official campaign organization.
Majority of Donors Republican Contributors - The majority of those donors are contributing to Republican/conservative organizations, and overall, Republican organizations are outraising Democratic organizations by a 2-1 margin. American Crossroads, the organization formed by former Bush political advisor Karl Rove, has collected $2 million from billionaire Jerry Perenchio, another million from billionaire Robert B. Rowling, and $500,000 from Texas real estate billionaire Bob Perry. The super PAC supporting the Obama reelection campaign, Priorities USA Action, founded by former Obama spokesperson Bill Burton, has collected $2 million from Hollywood mogul Jeffrey Katzenberg, and $500,000 each from media owner Fred Eychaner and from the Service Employees International Union (SEIU). The super PAC supporting the presidential campaign of Mitt Romney (R-MA), Restore Our Future (see June 23, 2011), has received million-dollar donations from hedge fund manager John Paulson, Utah firms Eli Publishing and F8 LLC, and the shadowy W Spann LLC (see July 12, 2011). It has also received half a million each from Perry, financiers Louis Moore Bacon and Paul Edgerly, Edgerly’s wife Sandra Edgerly, New Balance Athletic Shoes executive James S. Davis, J.W. Marriott of the hotel chain Marriott International, and Richard Marriott of Host Hotels and Resorts. Meredith McGehee of the Campaign Legal Center says: “The super PACs are for the wealthy, by the wealthy, and of the wealthy. You’re setting up a dynamic where the candidates could become bit players in their own campaigns,” particularly in less-expensive races for the House of Representatives. Katzenberg says his donation to the Obama-supporting super PAC was because of the increasing dominance of “Republican extremists” in national elections: “The stakes are too high for us to simply allow the extremism of a small but well-funded right wing minority to go unchallenged.” Charles Spies, the treasurer of Restore Our Future and Romney’s former general counsel, refuses to discuss donors, but says, “Donors recognize Mitt Romney is the most experienced and qualified candidate to challenge President Obama’s record of out-of-control, big government spending.” One donation drawing scrutiny is a $193,000 donation to the presidential campaign of Governor Rick Perry (R-TX) from a group called Americans for Rick Perry. The primary funder of that group is Texas billionaire Harold Simmons, who gave $100,000 to the group 10 days after Perry signed legislation allowing Simmons’s company to accept low-level radioactive waste from other states at its West Texas facility. A Perry spokesman denies any coordination between Simmons and his campaign, and says Perry has not even decided whether to run for president. Simmons helped fund the 2004 group Swift Boat Veterans for Truth, which launched a powerful campaign that smeared then-presidential candidate John Kerry (D-MA) and his Vietnam War record. American Crossroads has reported raising $3.9 million during the first six months of 2011. Its affiliate, Crossroads GPS, has spent $19 million on anti-Democrat advertising so far. That group does not have to report its donors or the amounts it receives. [USA Today, 8/4/2011]
'Recipe for Corruption - Legal expert Ian Millhiser of the liberal news Web site Think Progress comments: “It’s tough to imagine a surer recipe for corruption. Although super PAC’s are prohibited from giving money directly to candidates—one of the few remaining campaign finance laws that wasn’t eviscerated by Citizens United and similar cases (see January 21, 2010)—it’s not like a presidential candidate isn’t perfectly capable of finding out which billionaires funded the shadowy groups that supported their campaign. Moreover, if just a handful of people are responsible for the bulk of these donations, a newly elected president will have no problem figuring out who to lavish favors on once they enter the White House.” [Think Progress, 8/4/2011]

Entity Tags: Charles R. Spies, Robert B. Rowling, Richard Marriott, Bobby Jack Perry, Sandra Edgerly, Service Employees International Union, USA Today, W Spann LLC, A. Jerrold Perenchio, American Crossroads, American Crossroads GPS, Priorities USA Action, Paul Edgerly, Restore Our Future, Bill Burton, Harold Simmons, Meredith McGehee, Fred Eychaner, Eli Publishing, F8 LLC, Ian Millhiser, Louis Moore Bacon, James S. Davis, John Paulson, Karl C. Rove, James Richard (“Rick”) Perry, Jeffrey Katzenberg, J. W. (“Bill”) Marriott

Timeline Tags: Civil Liberties

The campaign of presidential candidate Mitt Romney (R-MA), the former governor of Massachusetts, acknowleges the influence of the Koch brothers (see July 3-4, 2010 and August 30, 2010) on Republican politics and the “tea party” movement. According to an internal campaign memo, the Koch brothers, particularly David Koch, are the “financial engine of the tea party” even though Koch “denies being directly involved.” The memo explicates the attempts that Romney and the campaign have taken to secure the support of the Koch brothers, including a January 2011 meeting between Romney and David Koch at an elite club in Manhattan, and an August 28 meeting that was canceled because of Hurricane Irene. David Koch publicly endorsed Romney for president in 2008, and one of Romney’s first major campaign fundraisers for the 2012 race was held at Koch’s mansion in the Hamptons. Political strategists acknowledge the success the Koch brothers have had in getting dozens of far-right candidates elected to Congress in 2010 and creating a network of tea party members who can help Romney secure the 2012 presidential nomination. Strategists have also noted Romney’s lack of support among many tea party members and organizations, and the likelihood that Romney will fail to capture the 2012 Republican presidential nomination without tea party support. “In many national surveys, Romney has had difficulty breaking 25 percent in support and that’s because [tea party] conservatives are suspicious of him and doubt his commitment to their issues,” says the Brookings Institution’s Darrell West. “He’s courting the tea party because he needs them to win.” But that support is far from certain. Judson Phillips, the co-founder of Tea Party Nation, says: “Our vote is split up among so many candidates—none of whom are Romney. Romney’s problem with a lot of tea party voters, myself included, is at this point I don’t know what he believes and I don’t care—because even if he tells me, ‘When I get to the White House I’m going to be fiscally conservative,’ he will probably change his mind, depending on which way the political winds are blowing.” Romney has a reputation as a “flip-flopper” who has changed his mind on a number of key issues, and a closet moderate who once supported abortion rights, the 2008 government bank bailouts, gay rights, and gun control. [Washington Examiner, 11/2/2011; Think Progress, 11/3/2011]

Entity Tags: David Koch, Charles Koch, Mitt Romney presidential campaign 2000, Willard Mitt Romney, Judson Phillips

Timeline Tags: Domestic Propaganda

The Federal Election Commission (FEC) unanimously rejects a petition by Senator Mike Lee (R-UT) for him to be allowed to head his own “super PAC” (see March 26, 2010). Lee’s “leadership PAC,” the Constitutional Conservatives Fund PAC (CCFPAC), had requested permission from the FEC to turn itself into a PAC capable of accepting donations directly from corporations and unions (see October 17, 2011). Previously, the FEC had released a draft opinion opposing the request, but Lee’s lawyer Dan Backer had said he felt the FEC would approve the request. Lee spokesperson Brian Phillips calls the decision “a head-scratcher.” Backer and Lee had counted on the controversial Citizens United Supreme Court decision (see January 21, 2010) that allowed corporations and labor unions to spend unlimited amounts in independent expenditures on behalf of candidates, and essentially say that if corporations and unions can run super PACs, politicians should be able to do so as well. They argued that because the law bars Lee from spending the money on his own reelection efforts, and because he is willing to pledge that he would not personally solicit large donations, the FEC should grant the request. The draft opinion said that Lee’s request violates campaign finance law that expressly prohibits elected officials from being associated with a political entity that collects money beyond the legal limits (see March 27, 2002), and the unanimous decision echoes that finding. A PAC such as the CCFPAC is limited to collecting $5,000 per person per year and is banned entirely from accepting corporate donations. Lee, a “tea party” favorite, would have been the first politician in the country to have his own super PAC. Commissioner Donald McGahn, the most conservative commissioner and an opponent of most campaign finance laws, told Lee and his legal team: “Your argument essentially does away with contribution limits. It’s well beyond what we do here and well beyond what I do here, which is saying something.” McGahn says he agrees that the government should not discriminate when applying regulations on independent expenditures, but that the statute and regulations clearly limit contributions to members of Congress to protect against corruption or the appearance of corruption. Lee’s office says that letting Lee run a super PAC of his own would actually increase transparency and accountability. Lee may yet appeal the decision to the Supreme Court. [Salt Lake Tribune, 11/24/2011; Think Progress, 11/28/2011; Deseret News, 12/1/2011]

Entity Tags: Federal Election Commission, Brian Phillips, Constitutional Conservatives Fund PAC, Donald McGahn, Michael Shumway (“Mike”) Lee

Timeline Tags: Civil Liberties

According to a Washington Post analysis, 10 percent of US billionaires have given to the presidential campaign of Mitt Romney (R-MA), who seems to be securing enough primary wins to be named the Republican Party’s presidential nominee. Romney himself is a former venture capitalist worth at least $250 million. Forty-two of the US’s 412 billionaires have donated to Romney’s campaign and third-party “super PACs” (see March 26, 2010, June 23, 2011, and November 23, 2011). President Obama has 30 billionaires on his donor list, or something over 7 percent. Romney opponents Rick Perry (R-TX) and Jon Huntsman (R-UT) have 20 and 12, respectively. The Washington Post reports: “Very wealthy donors are likely to play a greater role in this election cycle in the wake of recent court decisions that have loosened rules for campaign contributions (see January 21, 2010). That will only heighten one of the dominant narratives of the 2012 campaign: the nation’s rising income inequality and the outsize political influence of the super-wealthy.” Donors can only give $5,000 directly to candidates’ campaigns, but under the Citizens United ruling, they can give unlimited amounts to super PACs that run independent ads on behalf of, or in opposition to, candidates. “The only limit on the resources is the willingness of the donors to give,” says government professor Anthony Corrado, a former Democratic official. “It doesn’t take long to transfer $500,000 from one account to another.” Obama had a head start in raising campaign funds going into October 2010, largely because the Republican candidates were spending money against one another in primary battles. But now that Romney seems more and more assured as the Republican nominee, Republican donors are expected to focus on donating to his campaign and super PACs, and are expected to catch up to and surpass Obama and the Democrats in short order (see August 2, 2010, September 20, 2010, September 13-16, 2010, October 2010, Around October 27, 2010, May 5, 2011, and August 4, 2011). In 2008, Obama distanced his campaign from third-party donors, and donations from those individuals and interests were relatively down. But, perhaps recognizing the advantage Republicans have in raising money from the wealthy, Obama no longer objects to those donations. Romney’s largest donor so far is hedge-fund billionaire John Paulson, who has given $1 million to Romney’s super PAC Restore Our Future (see June 23, 2011). Think Progress’s Travis Waldron notes that Paulson made millions by shorting the housing market before the mortgage collapse that sparked the global financial crisis and drove the US economy into a recession. Other billionaires supporting Romney include Washington Redskins owner Dan Snyder, California real estate developer Donald Bren, and developer and publisher Sam Zell. Several billionaires who used to support Romney’s primary opponent Newt Gingrich (R-GA), including casino mogul Sheldon Adelson and Amway founder Richard DeVos, are expected to begin giving generously to the Romney campaign or to his super PAC. Obama’s richest donor is Len Blavatnik, a Russian-American industrialist who has also donated to Romney. Other billionaires supporting Obama include insurance magnate Peter Lewis, former Google executive Eric Schmidt, and venture capitalist John Doerr. Obama campaign spokesman Ben LaBolt downplays the billionaire contributions, saying, “Our campaign is fueled by donations from more than 1 million Americans, 98 percent of which were in amounts of $250 or less.” Corrado says that as the November elections approach, spending will only increase. “One of the things about large investors in campaigns is that they’re very interested in getting results,” he says. “And it is much easier to get a large effect in a race if you can give to directly advocate for and against a candidate.” [Washington Post, 12/1/2011; Think Progress, 12/6/2011]

Entity Tags: Dan Snyder, Sam Zell, Sheldon Adelson, Washington Post, Willard Mitt Romney, Anthony J. Corrado Jr., 2012 Obama presidential election campaign, Ben LaBolt, Restore Our Future, Richard DeVos, Newt Gingrich, James Richard (“Rick”) Perry, Eric Schmidt, Donald Bren, Peter Lewis, Mitt Romney presidential campaign (2012), John Paulson, Barack Obama, Len Blavatnik, Jon Huntsman, John Doerr

Timeline Tags: Civil Liberties, 2012 Elections

Representatives John Yarmuth (D-NY) and Walter Jones (R-NC) file a bill, the Yarmuth-Jones Disclose Act, that would amend the US Constitution to overturn the Citizens United ruling (see January 21, 2010) and take special-interest money out of American politics. The proposed amendment establishes that financial expenditures and in-kind contributions do not qualify as protected free speech under the First Amendment (see January 30, 1976, April 26, 1978, June 25, 2007, June 26, 2008, January 21, 2010, January 21, 2010, January 22, 2010, March 26, 2010, and December 12, 2011). It also makes Election Day—the first Tuesday in November—a legal holiday, and enables Congress to establish a public financing system that would serve as the sole source of funding for federal elections (see 1974, January 26, 2011 and After, June 27, 2011, and December 1, 2011). Yarmuth explains his proposal in the context of the Citizens United case, saying: “Corporate money equals influence, not free speech. The last thing Congress needs is more corporate candidates who don’t answer to the American people. Until we get big money out of politics, we will never be able to responsibly address the major issues facing American families—and that starts by ensuring our elections and elected officials cannot be bought by the well-off and well-connected.” Jones says in a statement: “If we want to change Washington and return power to the citizens of this nation, we have to change the way campaigns are financed. The status quo is dominated by deep-pocketed special interests, and that’s simply unacceptable to the American people.” Jones is one of the very few Republicans in Congress who is willing to advocate for campaign finance reform. It is unlikely the bill will pass the Republican-controlled House, and Senate Republicans would likely block it if it made it to that chamber. Amendments to the Constitution require a two-thirds vote in both chambers of Congress before being approved by three-fourths of state legislatures. [US House of Representatives, 12/20/2011; WFPL, 12/20/2011; Think Progress, 12/20/2011] This is not the first attempt to amend the Constitution to overturn Citizens United and regulate campaign financing (see September 20, 2011, November 23, 2010, November 1, 2011, and November 18, 2011).

Entity Tags: Walter Jones, 2012 Yarmuth-Jones Disclose Act, John Yarmuth

Timeline Tags: Civil Liberties

Republican presidential frontrunner Mitt Romney (R-MA) tells MSNBC reporter Chuck Todd that wealthy donors should be able to give unlimited amounts directly to candidates in lieu of donating to “independent” organizations such as super PACs (see March 26, 2010, June 23, 2011, and November 23, 2011). The US history of campaign finance law (see 1883, 1896, December 5, 1905, 1907, June 25, 1910, 1925, 1935, 1940, February 7, 1972, 1974, May 11, 1976, January 30, 1976, January 8, 1980, March 27, 1990, March 27, 2002, and December 10, 2003), including the 2010 Citizens United decision (see January 21, 2010), has always put stringent limitations on what donors can contribute directly to candidates. Asked if he thinks the Citizens United decision was a poor one, Romney responds: “Well, I think the Supreme Court decision was following their interpretation of the campaign finance laws that were written by Congress. My own view is now we tried a lot of efforts to try and restrict what can be given to campaigns, we’d be a lot wiser to say you can give what you’d like to a campaign. They must report it immediately and the creation of these independent expenditure committees that have to be separate from the candidate, that’s just a bad idea.” Ian Millhiser, a senior legal analyst for the liberal news Web site Think Progress, responds: “It’s not entirely clear from this interview that Romney understands what happened in Citizens United. That decision emphatically did not follow any ‘interpretation of campaign finance laws that were written by Congress.’ Rather, Citizens United threw out a 63-year-old federal ban on corporate money in politics.… [I]t was not a case of judges following the law. More importantly, however, Romney’s proposal to allow wealthy donors to give candidates whatever they’d ‘like to a campaign’ is simply an invitation to corruption (see October 17, 2011). Under Romney’s proposed rule, there is nothing preventing a single billionaire from bankrolling a candidate’s entire campaign—and then expecting that candidate to do whatever the wealthy donor wants once the candidate is elected to office. Romney’s unlimited donations proposal would be a bonanza for Romney himself and the army of Wall Street bankers and billionaire donors who support him, but it is very difficult to distinguish it from legalized bribery.” Millhiser notes that Romney had a different view on the subject in 1994, saying then that when you allow special interest groups to buy and sell candidates, “that kind of relationship has an influence on the way that [those candidates are] going to vote.” [Think Progress, 12/21/2011]

Entity Tags: Willard Mitt Romney, Charles David (“Chuck”) Todd, Ian Millhiser

Timeline Tags: Civil Liberties, 2012 Elections

Washington Post columnist Ruth Marcus sharply criticizes the actions of so-called “super PACs.” Super PACs are political organizations that exist to influence elections, which take unlimited amounts of outside money from donors, including individuals, unions, and corporations, and pool that money to advocate for or against a candidate (see March 26, 2010). By law, super PACs are supposed to operate independently of a candidate’s official campaign organization. A mere 12 donors, including several corporations, one union, and a number of billionaires, made up over half of the donations given to super PACs in the first half of 2011, and Republican super PACs have outraised Democratic super PACs by more than a 2-1 margin (see August 4, 2011). Marcus writes that the presidential election is already devolving into an affair “without meaningful contribution limits or timely disclosure, outsourced to political action committees whose spending often dwarfs that of the candidates they support.” The PACs and super PACs rarely obey the law and operate independently of the candidates they support. The Republican primary season demonstrates just how powerful they are: the super PAC supporting presidential candidate Mitt Romney (R-MA), “Restore Our Future,” has spent $4 million attacking Republican candidate Newt Gingrich (R-GA). The veneer of independence for Restore Our Future is thin: it is run by former Romney political director Carl Forti, its treasurer Charles Spies was Romney’s general counsel, its head fundraiser Steve Roche used to head the Romney 2012 finance team, and Romney has spoken at Restore Our Future events (see June 23, 2011). However, Marcus notes, “up-to-date information about who is bankrolling this effort will not be available until the end of January, by which point four states will have voted and Romney may have the nomination wrapped up.” Restore Our Future was last required to report its donors to the Federal Election Commission (FEC) in July 2011, when it reported raising $12 million. Gingrich’s own super PAC, “Winning Our Future,” is primarily funded by billionaire casino owner Sheldon Adelson, and their fellow Republican candidate Governor Rick Perry (R-TX) has the super PAC “Make Us Great Again.” Long-shot Republican candidate Jon Huntsman’s super PAC, “Our Destiny,” is reportedly funded primarily by Huntsman’s wealthy father. And President Obama’s super PAC, “Priorities USA Action,” has launched anti-Romney ads. Marcus writes, “The rise of these groups erodes the twin pillars of a functional campaign finance system: limits on the size of contributions and timely information about who is writing the checks.” Her concerns are echoed by veteran campaign finance reformer Fred Wertheimer, who recently said: “The establishment of the candidate-specific super PAC is a vehicle to completely destroy candidate contribution limits. It is a vehicle that will spread to Congress and it will lead us back to a system of pure legalized bribery, because you will be back, pre-Watergate, to unlimited contributions that are going for all practical purposes directly to candidates.” For now, super PACs, with their supposed independence, are free to air advertisements attacking opposing candidates while the candidate they support, Marcus writes, “gets to remain above the fray, not required to appear on camera to say that he or she approved this message.” FEC official Ellen Weintraub tells Marcus, “I view the super PAC as the evil twin of the candidate’s campaign committee.” Referring to the legal limit of $2,500 for donations to candidates from individual or corporate donors, Weintraub says, “How can it possibly be true that to give more than $2,500 to a candidate is potentially corrupting but to give millions to an outside group that is acting on the candidate’s behalf is not?” Marcus concludes by saying that “dangerous” super PACs will only increase their influence as the presidential campaign season continues. [Washington Post, 1/3/2012]

Entity Tags: Fred Wertheimer, Willard Mitt Romney, Winning Our Future, Charles R. Spies, Carl Forti, Barack Obama, Washington Post, Federal Election Commission, Steve Roche, Ruth Marcus, Make Us Great Again, Jon Huntsman, James Richard (“Rick”) Perry, Newt Gingrich, Priorities USA Action, Ellen L. Weintraub, Our Destiny, Sheldon Adelson, Restore Our Future

Timeline Tags: Civil Liberties, 2012 Elections

Author and columnist Steven Rosenfeld writes that the big winner of the 2012 Iowa caucuses is likely not any of the Republican presidential candidates, but the “independent” super PACs (see March 26, 2010, June 23, 2011, and November 23, 2011) that dominated spending in that state during the primary campaign (see January 3, 2012). Rosenfeld calls super PACs “satellite political campaigns that supposedly act independently of the candidates,” but patently do not. The process has become predictable, Rosenfeld writes: the candidate’s campaign, stating the candidate’s name as “approv[ing] this message,” airs positive, uplifting ads, while the super PAC working with that candidate airs a barrage of negative ads that slam other candidates while never stating the candidate being supported. “And then the candidates hypocritically decry their mudslinging allies,” Rosenfeld writes. Some of the Republican campaign ads were critical of the super PAC attacks on their candidates. Iowa citizen Jill Jepsen told a reporter: “Oh goodness. I just don’t listen to it. I can’t listen to it. It makes me sick.” Super PACs are required by law to report their donors, but their lawyers have been successful in filing papers to push back filing deadlines until after early primaries. Rosenfeld writes, “Such intentional secrecy means the handful of big money donors behind these groups—there were 264 registered PACs as of last week, with assets of $32 million—will not be accountable to anyone other than their candidate of choice.” The super PACs have plenty of money for later primaries, according to information from the Center for Responsive Politics. Rosenfeld cites recent remarks by law school professor Kendall Thomas, who told an audience that in his opinion, super PACs are a perfect representation of “the face of American capitalism.” The Citizens United decision (see January 21, 2010) would, in Rosenfeld’s description of Thomas’s words, “unleash outsized and unaccountable players into the American political arena… just as globalization has ushered large corporate players into the international economic order.” Thomas said, “We need to contest the vision of politics, and the vision of politics embraced in Citizens United, which views citizenship and constitutional democracy as part of the world of commodities.” Rosenfeld concludes: “[T]he losers in the Iowa caucuses are not just the Republicans with the fewest supporters. They are that state’s voters—and voters in the primary and caucus states to follow—who will experience a political process increasingly distant from their lives.” [AlterNet, 1/4/2012]

Entity Tags: Kendall Thomas, Steven Rosenfeld, Jill Jepsen

Timeline Tags: Civil Liberties, 2012 Elections

Bradley A. Smith, the chairman of the Center for Competitive Politics (CCP) and a former commissioner and chairman of the Federal Election Commission (FEC) during the second Bush administration, writes that the Citizens United decision (see January 21, 2010) and the subsequent flood of corporate money into the political campaign continuum (see January 21, 2010, January 21, 2010, January 21-22, 2010, January 21, 2010, January 21, 2010, January 21, 2010, March 26, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, June 23, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 23, 2011, December 1, 2011, January 3, 2012, January 6, 2012, and January 10, 2012) are good for American politics. [US News and World Report, 1/13/2012] According to a 2008 press report, Smith co-founded the CCP in 2006 in order to roll back campaign finance regulations, claiming that virtually any regulation is bad for politics. Smith has refused to reveal the financial sponsors that gave him the “seed money” to start the organization. Smith helped win the landmark SpeechNow case (see March 26, 2010) that allowed for the creation of “super PACs,” the organizations that are primarily responsible for flooding the campaign with corporate money. According to law professor Richard Hasen, Smith and the CCP have worked diligently to bring cases like the SpeechNow case to the Supreme Court so that the conservative-dominated Court can “knock them out of the park.” [Politico, 8/12/2008] Smith now writes: “Super PACs are not an evil tolerated under the First Amendment—they are what the First Amendment is all about. A super PAC, after all, is simply a group of citizens pooling resources to speak out about politics.” He claims that super PACs merely “leveled the playing field” after Democrats and Democratic-supporting organizations consistently outfunded Republican campaigns during elections. Super PACs have kept the presidential campaigns of candidates such as Rick Santorum (R-GA—see February 16-17, 2012) and Newt Gingrich (see December 19, 2011 and January 6, 2012) alive. Smith predicts that Democrats will easily outspend Republicans again once the presidential primary campaign concludes (see Around October 27, 2010), November 1, 2010 and May 5, 2011), but says, “Super PACs, however, will help level the field.” Smith claims that super PACs “disclose all of their expenditures and all of their donors,” and claims that any information to the contrary is wrong, as it is “confusing super PACs with traditional nonprofits such as the NAACP or the Sierra Club.” He concludes: “Super PACs are helping to shatter the old, established order, create more competition, and break the hold of special interests lobbyists—big business actually joined the ‘reform’ community in opposing super PACs in court. Are super PACs harming politics? Of course not. How odd that anyone would think that more political speech was bad for democracy.” [US News and World Report, 1/13/2012] The Citizens United decision specifically allows for donors to super PACs to remain anonymous, despite Smith’s claims to the contrary (see January 27-29, 2010, July 26, 2010, July 26-27, 2010, September 13-16, 2010, September 21 - November 1, 2010, Mid-October 2010, Around October 27, 2010, April 20, 2011, April 21, 2011 and After, July 12, 2011, and November 18, 2011). Republicans have fought to preserve that anonymity (see July 26-27, 2010, May 26, 2011, July 15, 2011, and July 20, 2011). Smith is correct in saying that traditional nonprofit groups must disclose their donors, though many are apparently failing to do so (see October 12, 2010).

Entity Tags: Rick Santorum, Center for Competitive Politics, Bradley A. (“Brad”) Smith, Newt Gingrich, Richard L. Hasen

Timeline Tags: Civil Liberties, 2012 Elections

Former Republican presidential candidate Tim Pawlenty (R-MN), now a supporter of Republican frontrunner Mitt Romney (R-MA), tells a reporter from the liberal news Web site Think Progress that the 2010 Citizens United decision allowing donors to contribute unlimited amounts of money to independent groups supporting individual candidates (see January 21, 2010) is “leveling the playing field” in politics. Reporters Scott Keyes and Travis Waldron call Pawlenty’s comment “a turn of phrase that would give George Orwell satisfaction.” Since the decision, a relatively small number of wealthy corporations and individuals have transformed US politics with their multi-million dollar donations (see January 21-22, 2010, March 26, 2010, August 2, 2010, September 13-16, 2010, September 21 - November 1, 2010, September 28, 2010, October 2010, Around October 27, 2010, November 1, 2010, (May 4, 2011), May 5, 2011, July 12, 2011, August 4, 2011, October 27, 2011, October 30, 2011, December 1, 2011, December 19, 2011, January 3, 2012, and January 6, 2012). But Pawlenty seemingly believes that campaign finance laws are still too restrictive, and says he believes that donors should be able to make unlimited donations directly to candidates (see December 21, 2011 and January 10, 2012) instead of making those donations to third-party groups. Pawlenty refuses to say the Citizens United decision will help Romney defeat President Obama in the November general election, and instead says that the decision helps “free speech” (see January 21, 2010 and January 22, 2010). Pawlenty continues: “Every time they try to contain speech, it pops up somewhere else. This is just me talking personally, I’m not speaking for Mitt’s position on this. The better position is to allow full and free speech in whatever form, but have instant disclosure.” Keyes asks, “You’re talking completely unlimited donations?” and Pawlenty responds: “We have that now, it’s just a question of where the money gets pushed to the third party groups. This leveling the playing field to some extent because in the past, unions in particular (see June 25, 1943 and June 23, 1947) and other interest groups had an advantage in the old system. Now the playing field’s being leveled a little bit.” He clarifies: “Right now, with super PACs and third party groups, there’s essentially unlimited giving to various aligned super PACs and groups. The point is, the United States Supreme Court has spoken. They have said we’re going to have free speech as it relates to political contributions. The First Amendment should be respected and protected, but I think we should also have full disclosure.” Keyes and Waldron write that billionaire corporate owners such as the Koch brothers (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) have pledged staggering amounts of money to defeat Obama in the November elections, and conclude, “This massive influx of unregulated campaign spending will almost certainly be the new normal as wealthy individuals and corporations find new ways to influence elections, helped in large part by the now-two year old Citizens United decision.” [Think Progress, 1/21/2012]

Entity Tags: Travis Waldron, Barack Obama, US Supreme Court, Scott Keyes, Willard Mitt Romney, Tim Pawlenty

Timeline Tags: Civil Liberties, 2012 Elections

The “independent” super PAC supporting the campaign of presidential aspirant Mitt Romney (R-MA), Restore Our Future (ROF—see June 23, 2011), releases its year-end campaign finance disclosure forms. Eighty-five percent of the 147 individual donors to ROF have also contributed the legal maximum to Romney’s official campaign committee. A large number of those donors are private equity managers, as Romney once was, or other wealthy members of the financial sector. Hedge fund investors Julian Robertson and Paul Singer contributed the maximum $2,500 to the Romney campaign, and $1 million apiece to ROF. Home builder Bob Perry and venture capitalist Steven Webster contributed the maximum $2,500 to the Romney campaign, and $50,000 apiece to ROF. Another five contributed the maximum $2,500 to the Romney campaign and $25,000 apiece to ROF. About $9 million of ROF contributions came from donors who had contributed the maximum amount to the Romney campaign. About $6 million came from venture capitalists, real estate developers, bankers, and investors. ROF has already spent some $17 million attacking Romney’s Republican primary opponents and another $800,000 on activities to support the Romney campaign, making it the most active super PAC to date. All of these contributions are legal under the Citizens United (see January 21, 2010) and SpeechNow (see March 26, 2010) court decisions. [Federal Election Commission, 1/31/2012; Think Progress, 2/1/2012]

Entity Tags: Steven Webster, Bobby Jack Perry, Julian Robertson, Willard Mitt Romney, Paul Singer, Restore Our Future

Timeline Tags: Civil Liberties, 2012 Elections

The Obama campaign reverses its previous policy and begins asking major contributors to donate to a super PAC, Priorities USA, that supports President Obama’s re-election. Previously, the Obama campaign, and Obama himself, had been reluctant to ask for donations for the PAC. Since 2010, Democrats have been worried about the effect of the Republican super PACs on the presidential campaign as well as Congressional and even state and local races, but have been divided on how to respond to the flood of money in support of their Republican opponents (see August 2, 2010, September 13-16, 2010, September 24, 2010, October 18, 2010, Around October 27, 2010, Mid-November 2010, August 4, 2011, October 27, 2011, December 1, 2011, January 3, 2012, and January 6, 2012). Obama campaign spokesman Jim Messina says that Republican-supporting super PACs are collectively expected to spend “half a billion dollars, above and beyond what the Republican nominee and party are expected to commit to try to defeat the president. With so much at stake, we can’t allow for two sets of rules in this election whereby the Republican nominee is the beneficiary of unlimited spending and Democrats unilaterally disarm.… We’re not going to fight this fight with one hand tied behind our back.” Messina also says that Obama is strongly against such campaign finance practices, and supports strong action “by constitutional amendment, if necessary” to once again restrict campaign donations from the wealthy. (In January 2012, Politico reported that Obama was completely opposed to the idea of super PACs, including his own—see January 18, 2012.) Joe Pounder of the Republican National Committee issues a statement harshly critical of the decision, which reads in part, “Yet again, Barack Obama has proven he will literally do anything to win an election, including changing positions on the type of campaign spending he called nothing short of ‘a threat to our democracy.’” So far, super PACs supporting Republican candidates have raised over $50 million, putting the Obama campaign at a distinct disadvantage. New York Democratic fundraiser Robert Zimmerman observes: “It’s hard to pass the plate for super PAC money while Democratic leaders have been preaching about the sins of it. But the reality is, it is essential in 2012.” Campaign and White House officials will appear at fundraisers for Priorities USA, though neither the president nor the first lady will make such appearances. Super PACs, created by the Citizens United decision (see January 21, 2010) and a lower court decision in the wake of that ruling (see March 26, 2010), have come to dominate US election activities, particularly in the area of television, radio, and print advertising. Shortly after the Citizens United decision, Obama criticized it during his State of the Union address, saying: “I don’t think American elections should be bankrolled by America’s most powerful interests or, worse, by foreign entities. They should be decided by the American people, and I’d urge Democrats and Republicans to pass a bill that helps correct some of these problems” (see January 27-29, 2010). However, Congress has been unable to rein in the super PACs, with the most visible effort, Congressional Democrats’ DISCLOSE Act, being successfully filibustered by Senate Republicans (see July 26-27, 2010). CBS News political expert John Dickerson says the Obama campaign has no choice but to emulate the Republicans: “What the Obama camp saw is these fundraising numbers from last year. The Republicans were able to raise so much money. They also saw what Romney was able to do to Newt Gingrich in Florida, just absolutely bury him under ads, and they started to worry about what this was going to mean for the president in the general election.” Dickerson says that with the public perception of Republican frontrunner Mitt Romney (R-MA) being so negative, the ads in support of Romney will undoubtedly be quite negative against Obama. Dickerson expects the Obama campaign to retaliate in kind, saying: “Some of the things that Romney had to do to combat those [primary] attacks, he had to get a little bit more negative, seem a little bit more unpleasant as a candidate.… That’s another reason why [Obama] had to make this decision on super PACs: that this is going to be ugly, it’s going to be on the airwaves, and they need to be able to compete.” [New York Times, 2/6/2012; CBS News, 2/7/2012] The Obama campaign’s announcement comes on the same day as news that the Romney campaign has benefited from $1.22 million in funding from oil, gas, and coal corporations (see February 6, 2012).

Entity Tags: Priorities USA Action, Barack Obama, 2012 Obama presidential election campaign, Jim Messina, John Dickerson, Willard Mitt Romney, Joe Pounder, Robert Zimmerman

Timeline Tags: Civil Liberties, 2012 Elections

Billionaire oil magnate David Koch, who with his brother Charles Koch has become one of the driving financial forces behind the US conservative political movement (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011), gives an interview to the Palm Beach Post’s Stacey Singer. Koch, who rarely gives interviews, chose to meet with Singer because of her background as a health and science writer, according to Koch spokesperson Cristyne Nicholas. The interview focuses in part on the cancer research underway at the University of Texas’s MD Anderson Cancer Center, where Koch is being treated for prostate cancer. However, the interview also touches on the Koch brothers’ political participation. Singer begins her report of the interview by informing her readers of the media portrayal of the “secretive” brothers and their construction of what she calls “a clandestinely built political machine that disdains government regulation and taxes, obfuscates the science on global warming, and now pulls the strings of decision-makers at every level, from Florida Tea Party members to Wisconsin state senators—even US Supreme Court justices.” She writes that Koch seems “baffled” by that perception, saying: “They make me sound like a bully. Do I look like a bully?” According to Singer, Koch wants to improve his media image. The Koch brothers have given, Singer reports, “many millions to far-right organizations dedicated to spreading an Ayn Rand-infused ideology, one in which a benevolent business class flourishes, unfettered by taxes and regulations. Some have called it free-market fundamentalism.” Nicholas says Koch wants to be remembered more for his philanthropy than his political involvement. “That’s what his legacy will hopefully be: finding a cure for cancer,” she writes. “That is his goal in life right now and it far exceeds any political views he has. Which are strong.” Koch is proud of his political activism, admitting without restraint his organizations’ involvement in protecting Governor Scott Walker (R-WI) from being recalled. “We’re helping him, as we should. We’ve gotten pretty good at this over the years,” he says. “We’ve spent a lot of money in Wisconsin. We’re going to spend more.” The “we” in his statement is primarily Americans for Prosperity (AFP—see Late 2004), the “astroturf” lobbying and advocacy organization that is spending some $700,000 on a single advertisement buy in Wisconsin on Walker’s behalf, an ad that makes statements many union members and public workers say is filled with false and misleading praise for Walker’s policies. In a now-famous prank phone call, a blogger posing as Koch got Walker to say that his goal was to “crush” Wisconsin’s unions, a goal Koch may share, though he is more circumspect in his language. “What Scott Walker is doing with the public unions in Wisconsin is critically important,” Koch says after an expansive dinner featuring salmon and white wine. “He’s an impressive guy and he’s very courageous. If the unions win the recall, there will be no stopping union power.” Nicholas later “clarifies” Koch’s remarks, saying: “Koch companies support voluntary associations, and where they so choose, we recognize employees’ rights to be represented and bargain collectively. We think the best workplace relationships are fostered when the employer works directly with its employees. It is a mischaracterization of our principles to say this means we oppose unions or want to dismantle all unions.” Singer writes that Koch’s usage of the term “union power” seems as biting as one might have said “Bolshevik” in an earlier time—“a new red scare for a new century,” she writes. Besides funding such organizations as AFP, the Cato Institute, the Heritage Foundation, the Republican Governors Association, the American Legislative Exchange Council (where, Singer writes, “copycat conservative legislation is passed among conservative state politicos”), and others, the Koch brothers are one of the most powerful and influential financial forces behind the “tea party” movement, largely through AFP. Singer conducts the interview on February 11; the Palm Beach Post publishes the report based on the interview on February 20. [Palm Beach Post, 2/20/2012; Nation, 2/20/2012] Koch’s public admission of support for Walker could constitute a violation of the laws administering such “nonprofit” organizations as AFP, according to one journalist (see February 20, 2012).

Entity Tags: Cristyne Nicholas, Americans for Prosperity, American Legislative Exchange Council, Charles Koch, Stacey Singer, Palm Beach Post, Republican Governors Association, Heritage Foundation, David Koch, Cato Institute, Scott Kevin Walker, MD Anderson Cancer Center

Timeline Tags: Civil Liberties, 2012 Elections

Bradley A. Smith, the chairman of the Center for Competitive Politics (CCP) and a former commissioner and chairman of the Federal Election Commission (FEC) during the George W. Bush administration, writes a second editorial for US News and World Report defending “super PACs,” the “independent” political entities responsible for infusing millions of dollars into the political campaign system. Smith wrote an editorial in January 2012 defending super PACs, claiming they are the direct outgrowth of First Amendment free-speech rights and are actually good for the campaign system (see January 13, 2012). However, as in his first editorial, Smith makes a number of false claims to bolster his arguments. Such organizations were created in the aftermath of the Supreme Court’s 2010 Citizens United decision (see January 21, 2010) and the following SpeechNow.org decision (see March 26, 2010). He notes, correctly, that until 1974 there were no federal restrictions on super PACs, apparently referring to that year’s amendments to the Federal Election Campaign Act (see 1974), though he fails to note that such organizations did not exist until after the SpeechNow decision. He claims that “[t]here is no evidence that super PACs have led to a greater percentage of negative ads” than in earlier presidential campaigns, though he cites no evidence to that effect. He also claims, as he did in the first editorial, that it is false to claim super PACs “spend ‘secret’ money. This is just not true. By law, super PACs are required to disclose their donors. There are groups that have never had to disclose their donors, non-profits such as the Sierra Club, Planned Parenthood, the NAACP, and the NRA. If you want more disclosure, super PACs are a step forward.” Unfortunately, the Citizens United decision specifically allows donors to super PACs to remain anonymous, despite Smith’s claims to the contrary (see January 27-29, 2010, July 26, 2010, July 26-27, 2010, September 13-16, 2010, September 21 - November 1, 2010, Mid-October 2010, Around October 27, 2010, April 20, 2011, April 21, 2011 and After, July 12, 2011, and November 18, 2011). Republicans have fought to preserve that anonymity (see July 26-27, 2010, May 26, 2011, July 15, 2011, and July 20, 2011). As in the first editorial, Smith is correct in saying that traditional nonprofit groups must disclose their donors, though many are apparently failing to do so (see October 12, 2010). He also claims that super PACs increase competition—“level the playing field,” as he wrote in the first editorial—by allowing Republican candidates to equal the spending of their Democratic opponents. In reality, Republicans have outstripped Democrats in outside, super PAC spending since the Citizens United decision (see Around October 27, 2010, November 1, 2010, and May 5, 2011). Smith bolsters his claim by citing direct campaign spending as offsetting “independent” super PAC spending, such as in the 2010 US House race involving incumbent Peter DeFazio (D-OR), who won re-election even after a $500,000 super PAC-driven effort on behalf of his challenger. DeFazio, Smith claims, “outspent his opponent by a sizable margin and won. Still, for the first time in years he had to campaign hard for his constituents’ support. That’s a good thing.” He cites the presidential campaigns of Republican contenders Newt Gingrich (R-GA—see December 19, 2011 and January 6, 2012) and Rick Santorum (R-PA—see February 16-17, 2012), which have relied on the contributions of a very few extraordinarily wealthy contributors to keep their candidacies alive against the frontrunner Mitt Romney (R-MA), whose own super PAC funding is extraordinary (see June 23, 2011). And, he writes, super PAC spending “improves voter knowledge of candidates and issues. Indeed, political ads are frequently a better source of information for voters than news coverage.” The most important benefit of the two Court decisions and the subsequent influx of corporate money into the US election continuum (see January 21, 2010, January 21, 2010, January 21-22, 2010, January 21, 2010, January 21, 2010, January 21, 2010, March 26, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, June 23, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 23, 2011, December 1, 2011, January 3, 2012, January 6, 2012, January 10, 2012, and January 23, 2012), he writes, “is that they get government out of the business of regulating political speech. Who would say that you can’t spend your own time and money to state your own political beliefs? Vindicating that fundamental First Amendment right is good for democracy.” [US News and World Report, 2/17/2012]

Entity Tags: Newt Gingrich, Bradley A. (“Brad”) Smith, Center for Competitive Politics, Peter DeFazio, Federal Election Campaign Act of 1972, Willard Mitt Romney, Federal Election Commission, US Supreme Court

Timeline Tags: Civil Liberties

In response to a lengthy interview of oil billionaire David Koch conducted by the Palm Beach Post, John Nichols of the liberal magazine The Nation writes that Koch’s “bragging” about spending hundreds of thousands of dollars on behalf of Wisconsin Governor Scott Walker could well be considered inappropriate and perhaps illegal coordination with a political candidate (see February 11-20, 2012). Nonprofit, tax-exempt 501(c)3 organizations such as Americans for Prosperity (AFP) are not allowed to coordinate their activities with candidates or campaigns, but are required by law to operate independently (see March 26, 2010). Nichols writes of AFP’s “Stand with Walker” campaign: “These ads are supposedly independent expenditures by a not-for-profit organization that operates under tax rules established to benefit the work of ‘Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations.’” The law is quite clear. Nichols quotes IRS tax law, which states: “Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.” AFP’s ads seem to violate these rules, Nichols writes. “So, while David Koch’s stated enthusiasm for Scott Walker was not surprising, his explanation of how that enthusiasm is being expressed politically was.” [Nation, 2/20/2012]

Entity Tags: John Nichols, David Koch, The Nation, Palm Beach Post, Scott Kevin Walker

Timeline Tags: Civil Liberties, 2012 Elections

Almost a quarter of the millions donated to super PACs so far during the campaign season comes from just five donors, a USA Today analysis shows. Super PACs are political organizations that exist to influence elections, which take unlimited amounts of outside money from donors, including individuals, unions, and corporations, and pool that money to advocate for or against a candidate (see March 26, 2010). By law, super PACs are supposed to operate independently of a candidate’s official campaign organization. In August 2011, a USA Today analysis showed that a dozen wealthy individuals and corporations contributed over half of the money given to super PACs (see August 4, 2011). Washington Post columnist Ruth Marcus has called the influence of the supposedly independent organizations corrosively corrupting and extraordinarily dangerous, and correctly predicted that their influence would increase as the campaign season wears on (see January 3, 2012). Four of those donors are:
bullet Dallas industrialist Harold Simmons, who financed the 2004 “Swift Boat Veterans for Truth” campaign that vilified presidential candidate John Kerry (D-MA), has given $12 million to the Republican super PAC “American Crossroads” and $2.2 million to super PACs supporting Republican presidential candidates;
bullet Las Vegas casino billionaire Sheldon Adelson, who with his wife Miriam has given $10 million to “Winning the Future,” the super PAC supporting Republican candidate Newt Gingrich (R-GA—see December 19, 2011 and January 6, 2012), and who says he is willing to donate up to $100 million more to keep Gingrich in the race (see February 21, 2012);
bullet Silicon Valley venture capitalist Peter Thiel, who has given $2.6 million to “Endorse Liberty,” a super PAC backing Representative Ron Paul (R-TX) and his presidential campaign;
bullet Houston real estate developer Bob Perry, who has given $3.6 million to super PACs, including $2.5 million to American Crossroads. Perry formerly backed Governor Rick Perry (R-TX) and former Governor Tim Pawlenty (R-MN) in the presidential primaries, but has now shifted his allegiance to frontrunner Mitt Romney (R-MA).
Republican organizations have vastly outraised their Democratic counterparts, though so far much of the money spent by Republican organizations has been to attack Republican presidential candidates during the primary campaigns. Indeed, some political observers say that Romney would have secured the nomination long ago if not for the billionaires supporting other Republican candidates. “Without the flow of super PAC money, the Republican race would be over,” says campaign finance expert Anthony Corrado. “Super PACs have become a vehicle for a very small number of millionaires and billionaires who are willing to spend large sums in pursuit of their political agenda.” Political scientist Cal Jillson says of the billionaires contributing these huge sums: “They are extremely wealthy people who put their resources behind their vision of the appropriate relationship between the government and the private sector. That vision is low taxes, small government, and personal responsibility.” The super PAC working on behalf of President Obama, “Priorities USA,” collected $2 million in late 2011 from Hollywood executive Jeffrey Katzenberg, but since then has raised relatively paltry amounts in comparison to its Republican counterparts. It raised a mere $59,000 in January 2012, most of that made up of a $50,000 contribution from John Rogers, CEO of Arial Investments and a close friend of Obama. [USA Today, 2/21/2012] The USA Today analysis is congruent with a recent analysis by Robert Reich, the former Treasury Secretary under President Clinton (see February 21, 2012).

Entity Tags: Cal Jillson, Sheldon Adelson, Bobby Jack Perry, USA Today, Willard Mitt Romney, Anthony J. Corrado Jr., American Crossroads, Ruth Marcus, Barack Obama, Tim Pawlenty, Peter Thiel, James Richard (“Rick”) Perry, Harold Simmons, Endorse Liberty, Priorities USA Action, Ron Paul, John Kerry, John Rogers, Jeffrey Katzenberg, Newt Gingrich, Miriam Adelson

Timeline Tags: Civil Liberties, 2012 Elections

Author and political science professor Richard Hasen provides data showing that the Supreme Court’s 2010 Citizens United decision (see January 21, 2010) is directly responsible for a huge rise in corporate “outside” spending on behalf of political campaigns. Recent arguments in defense of the decision have said that “super PACs,” the “independent” political entities that take corporate, labor union, and individual donations for the purpose of making television ads in support of, or opposition to, a particular candidate or party (see March 26, 2010, June 23, 2011, November 23, 2011, January 4, 2012, January 4, 2012, and February 20, 2012) were not created by the Court’s decision, and therefore Citizens United cannot be held responsible for the enormous surge in spending since the decision was rendered. The arguments equate older “527” organizations (see 2000 - 2005, March 2000 and After, and June 30, 2000) and the enormous donations made on their behalf (see January - November 2004) with the activities of super PACs after the Citizens United decision. “The purpose of the drumbeat appears to be to insulate the Supreme Court from further criticism of the Frankenstein’s monster they’ve created,” Hasen writes. He shows that the two types of organizations—527s and super PACs—are quite different. “It is true that before Citizens United people could spend unlimited sums on independent advertising directly supporting or opposing candidates,” Hasen explains. “But that money had to be spent by the individual directly. It could not be given to a political action committee, which had an individual contribution cap of $5,000 and could not take corporate or union funding. In many cases, wealthy individuals did not want to spend their own money on advertising, which would say, ‘Paid for by Sheldon Adelson’ or ‘Paid for by George Soros,’ so fewer of these ads were made. The only way to avoid having your name plastered across every ad was to give to the 527s, which claimed they could take unlimited money from individuals (including, sometimes, corporate and labor union money) on grounds that they were not PACs under the FEC’s definition of PACs. These organizations were somewhat successful, but a legal cloud always hung over them.” After Citizens United, courts and the Federal Election Commission ruled that super PACs could collect unlimited sums from corporations, unions, and individuals for unlimited independent spending. Hasen writes: “The theory was that, per Citizens United, if independent spending cannot corrupt, then contributions to fund independent spending cannot corrupt either. (I am quite critical of this theory about corruption, but that’s besides the point here.) So what was once of questionable legality before the court’s decision was fully blessed after Citizens United.” Using data from the Center for Responsive Politics and its OpenSecrets (.org) Web site, Hasen compares spending during presidential election years.
bullet 1992: Wealthy individuals, organizations, and corporations are allowed to spend unlimited sums (see January 30, 1976). Outside spending in that campaign, up through early March 1992, was about $1.5 million.
bullet 2000: The law remains essentially unchanged. By March 2000, outside spending was around $2.6 million.
bullet 2004: With the advent of “527” groups, by March 2004, outside spending rose to $14 million.
bullet 2008: Under similar conditions as 2004, by March 2008, outside spending rose to $37.5 million.
bullet 2012: In the first presidential campaign year after the Citizens United decision, spending as of early March 2012 is over $88 million.
2012 outside spending is at 234 percent of 2008 spending, and 628 percent of 2004 outside spending. Hasen writes, “If this was not caused by Citizens United, we have a mighty big coincidence on our hands.” Hasen expects outside spending to rise dramatically once the Republican primary is concluded and the presumptive Republican nominee begins campaigning against President Obama. “Wait until the super PACs and other organizations start raising their unlimited sums for the general election,” Hasen warns. “Further, lots of groups are now using 501(c) organizations rather than super PACs for their campaign spending, in an effort to hide their donors.” Data from the Center for Responsive Politics shows that during the 2010 midterm elections, spending from groups that used the law to hide their donors rose from 1 percent in 2006 to 47 percent. Moreover, “501(c) non-profit spending increased from 0 percent of total spending by outside groups in 2006 to 42 percent in 2010.” And 72 percent “of political advertising spending by outside groups in 2010 came from sources that were prohibited from spending money in 2006.” The record-breaking spending in the 2008 presidential election—$301 million—was eclipsed in the first post-Citizens United election, the 2010 midterms, when corporate and other outside spending topped out at $304.6 million. Hasen writes: “It was an incredible number for a midterm election season. Why did that happen? Citizens United was decided early in 2010.” [Slate, 3/9/2012]

Entity Tags: Sheldon Adelson, Federal Election Commission, Center for Responsive Politics, Barack Obama, George Soros, US Supreme Court, Richard L. Hasen

Timeline Tags: Civil Liberties

The liberal news Web site Think Progress cites the two-year anniversary of the SpeechNow.org v. Federal Elections Commission ruling (see March 26, 2010), which allowed the creation of “super PACs,” or “independent expenditure” organizations. Think Progress writes, “Combined with the unlimited corporate expenditures enabled by the Supreme Court’s earlier Citizens United decision (see January 21, 2010), this case brought the campaign finance system to where it is now: more than $80 million spent already this cycle by super PACs and more than two-thirds of their funding coming from just 46 rich donors.” $67 million of the $80 million spent so far comes from 46 extraordinarily wealthy citizens. Almost all of them are owners and/or senior executives of oil and energy companies, hoteliers, and financial executives. Almost all are white and male. And almost all of them contribute to conservative and Republican-supporting groups (see February 21, 2012). John Dunbar of the Center for Public Integrity says, “We’re looking at a singularly weird phenomenon.” The super PAC supporting Republican presidential candidate Mitt Romney (R-MA), himself a former financial services CEO, is primarily funded by Wall Street executives, mostly private equity and hedge fund executives. One major Romney contributor, hedge fund manager John Paulson, has contributed $1 million. Paulson made enormous profits in 2008 by investing funds in ventures based on the mortgage industry collapse. Viveca Novak of the Center for Responsive Politics says, “The financial sector is one where there’s a lot of money, and it’s a sector with which Romney is very familiar, so it’s not surprising that it would be a big source of contributions.” Other Republican candidates such as Newt Gingrich (R-GA), Rick Santorum (R-PA), and Ron Paul (R-TX) also garner big contributions from billionaires. Gingrich is primarily funded by casino owner Sheldon Adelson, who makes much of his money in Las Vegas and China’s Macau. Paul has the backing of billionaire Peter Thiel, a Silicon Valley venture capitalist, and Santorum is primarily supported by billionaire Foster Friess (see February 16-17, 2012)—arguably all three candidates’ campaigns are being supported by single donors who decide whether their campaigns will continue by virtue of granting or withholding donations. Attorney Paul S. Ryan of Campaign Legal Center says: “We’ve had a small group of donors maintain the viability of certain candidates. It’s an Alice in Wonderland situation. It defies logic.… American elections are funded by a very narrow range of special interests, and that has the effect of making our democracy look a lot more like a plutocracy.” Thomas Mann of the Brookings Institution says it is sometimes difficult to discern the motivations behind billionaires’ funding of certain candidates, but billionaire Harold Simmons, who made his fortune in leveraged buyouts and corporate takeovers, says he is funding conservative super PACs because President Obama is a “socialist.” The Wall Street Journal has noted that Simmons and others like him would profit greatly if their industries were less regulated by government agencies. If Republicans do well in the November elections, Simmons told the Journal that “we can block that crap [regulations].” Conservative super PACs are far outstripping the super PAC backing the Obama re-election campaign as well as other Democrats running for office. Mann says, “The pool of billionaires who can throw tens of millions into the game—and are inclined to do so—is concentrated on the right.” Obama has so far been reluctant to get involved in his super PAC’s fundraising activities, but recent statements by his campaign indicate that White House aides will try to help Priorities USA Action, the Obama super PAC, raise more money in the near future. Obama campaign manager Jim Messina says the Obama campaign is in danger of being overwhelmed by the fundraising from conservative billionaires. CNN states that the most notable effect of super PAC funding might not be on the presidential race, but on “downticket” races for Congress. Much smaller outlays of super PAC money can have extraordinary impacts on such races. Dunbar says, “An individual donor and a super PAC could go off to some district in Kentucky and just completely destroy some candidate because he doesn’t favor what’s good for your business.” [Think Progress, 3/26/2012; CNN, 3/26/2012; Huffington Post, 6/16/2012]

Entity Tags: Jim Messina, Harold Simmons, Viveca Novak, Wall Street Journal, Willard Mitt Romney, CNN, Barack Obama, Thomas Mann, Think Progress (.org), US Supreme Court, Foster Friess, Newt Gingrich, John Paulson, John Dunbar, Sheldon Adelson, Ron Paul, Paul S. Ryan, Rick Santorum, Priorities USA Action, Peter Thiel

Timeline Tags: Civil Liberties, 2012 Elections

The Washington Post reports that an anonymous donor gave the political advocacy organization Crossroads GPS $10 million to run television ads attacking President Obama and Democratic policies, part of the almost $77 million in secret donations the group has received. It also received another $10 million from an anonymous donor to use during the 2010 midterm elections. The Post says the donations are emblematic of “the money race that is defining the 2012 presidential campaign.” According to data provided by the Center for Public Integrity, $76.8 million of the money raised in 2010 and 2011—62 percent—was secretly contributed to Crossroads GPS. The money came from fewer than 100 individual donors, which works out as an average donation of over $750,000; 90 percent of its donors gave over $1 million in individual donations. Crossroads GPS is a conservative nonprofit 501(c)(4) group co-founded by former Bush administration political advisor Karl Rove. The information about the donations comes from draft tax returns that provide a limited insight into the donations received by the group. Under the law (see January 21, 2010 and March 26, 2010), Crossroads GPS is not required to identify its donors. The Post says it is possible both donations came from the same source, but it has no way to confirm that supposition.
Explanations and Criticisms - Crossroads GPS is the sister organization of American Crossroads, the super PAC also co-founded by Rove. The two groups share the same president (Steven Law), the same spokesperson, the same staffers, and the same mailing address. Together, they have raised $100 million for the 2012 election cycle and have already run millions of dollars of television ads. Crossroads GPS spokesperson Jonathan Collegio says that the organization “advocates for free markets, free trade, limited government, and personal responsibility.” The group’s donors are “individuals and businesses that support our vision of lower taxes and smaller government. We believe President Obama’s tax and regulatory policies are strangling economic growth through excessive regulation and government spending that is crowding out private investment.” Bill Allison of the Sunlight Foundation, which advocates for transparency in government and politics, says that the two groups are “certainly not a grassroots movement.… These donors can have a very disproportionate effect on politics, and the fact that we don’t know who they are and what kind of favors they will ask for is very troubling.” Allison speculates that some of the anonymous Crossroads GPS donors may be large public corporations, which according to the Post have “for the most part… not donated to super PACs or other groups that disclose donors.” American Crossroads is required to disclose its donors, which include Texas billionaire Harold Simmons ($12 million) and Texas home builder Bob Perry ($2.5 million). The Republican Jewish Coalition has identified itself on its tax returns as a donor to Crossroads GPS, having given $4 million to the organization. (Crossroads GPS donated back $250,000.) Sunlight and other critics have questioned Crossroads GPS’s status as a nonprofit “social welfare” group. Under IRS regulations, such groups cannot have as their primary purpose influencing elections, but they can spend up to half their money on political campaigning. The group has asked the IRS to grant it tax-exempt status. Critics have asked the IRS to revoke the group’s nonprofit status, saying that it is patently a political organization. A complaint filed by the Campaign Law Center and Democracy 21 in December 2011 said in part, “We are deeply concerned about the failure of the IRS to take any public steps to show that the agency is prepared to enforce the tax laws.” Crossroads GPS claims it has spent $17 million on direct election activities and $27 million on “grassroots issue advocacy,” including a $16 million expenditure in the summer of 2011 on ads pushing against tax increases during debate on raising the debt ceiling (see August 5, 2011). It has also given some $16 million to a network of conservative advocacy groups, including $4 million to Americans for Tax Reform (ATR), $3.7 million to the National Federation of Independent Business, and $2 million to the National Right to Life Committee. According to Crossroads GPS, all of its donation recipients are instructed to use the funds “only for exempt purposes and not for political expenditures.” In 2010, ATR spent $4 million—almost exactly the amount it received from Crossroads GPS—on political ads in 2010. Melanie Sloan of Citizens for Responsibility and Ethics in Washington (CREW) says that even if ATR did not spend the Crossroads GPS money on ads, the donation allowed it to divert $4 million of its own money to election ads. “It’s the same amount—does that seem likely to be a coincidence to you?” she asks a reporter. An ATR spokesperson says the Crossroads GPS donation was “in support of our work fighting tax hikes.” [Washington Post, 4/13/2012; iWatch News, 4/20/2012; Think Progress, 4/20/2012]
High Compensation - Steven Law, the former deputy secretary of labor under President Bush and the former general counsel for the US Chamber of Commerce who serves as the president of both organizations, pulled down $1.1 million in salaries and bonuses for the two groups. Collegio explains the high compensation to a reporter, saying: “Crossroads is a serious organization. Free market conservative donors know that hiring top CEO talent requires real compensation.” [iWatch News, 4/20/2012]

Entity Tags: American Crossroads, National Right to Life Committee, Karl C. Rove, Barack Obama, American Crossroads GPS, Washington Post, National Federation of Independent Business, Americans for Tax Reform, Melanie Sloan, Campaign Law Center, Bill Allison, Jonathan Collegio, Steven Law, Harold Simmons, Center for Public Integrity, Democracy 21, Republican Jewish Coalition, Bobby Jack Perry

Timeline Tags: Civil Liberties, 2012 Elections

Senate Minority Leader Mitch McConnell (R-KY) and the US Chamber of Commerce file amicus curiae briefs with the US Supreme Court urging it to reverse the Montana Supreme Court’s support for Montana’s ban on corporate financing of political campaigns (see December 30, 2011 and After). The conservative lobbying and advocacy group Citizens United (CU) has already filed such a brief. Former officials of the ACLU, along with advocacy groups such as Free Speech for People, have filed an amicus brief asking the Court to review the decision. Many observers have predicted the Court will overturn the Montana high court’s ruling (see January 4, 2012) because it seems to conflict with the 2010 Citizens United Supreme Court decision (see January 21, 2010), but a summary reversal—in essence, a decision without allowing the two sides to present arguments—would be somewhat unusual. Four justices are required to accept the case for review, while five must vote for summary judgment. The Court issued a stay on the Montana court’s decision soon after its issuance (see February 10-17, 2012). The case is American Tradition Partnership, et al., v. Bullock. CU lawyers have asked the Court to protect the ruling it issued in the case bearing its name, accusing the Montana court of “constitutional mischief” and advising the Court to “reaffirm its position as the final arbiter of the Constitution’s meaning” by summarily reversing the Montana court’s decision. On the other side, the ACLU officials and other briefs have urged the Court to review its Citizens United decision, saying the ruling is “in serious doubt” because of “massive” spending in the 2012 federal campaigns “by corporations and wealthy elites.” The Free Speech for People brief focuses on the issue of spending by “independent” outside groups and individuals since the Citizens United decision (see January 21-22, 2010, March 26, 2010, August 2, 2010, September 13-16, 2010, September 21 - November 1, 2010, September 28, 2010, October 2010, Around October 27, 2010, November 1, 2010, (May 4, 2011), May 5, 2011, July 12, 2011, August 4, 2011, October 27, 2011, October 30, 2011, December 1, 2011, December 19, 2011, January 3, 2012, January 6, 2012, January 10, 2012, February 21, 2012, February 21, 2012, and March 26, 2012), and says the massive spending undercuts the rationale for the decision: “In view of the increasingly dominant role of corporate and private independent expenditures in our electoral politics, this Court should grant certiorari and reexamine whether its long-standing precedent permitting regulations designed to prevent the use of wealth from drowning out other voices provides an additional basis for upholding restrictions on independent expenditures.” The Free Speech for People brief also argues that the Court should use the American Tradition Partnership case to rule that corporations are not entitled to the protections of the First Amendment free speech clause or other provisions in the Bill of Rights. CU lawyers have argued that the Citizens United decision is not the issue, but the Montana high court’s decision to uphold its state ban on unlimited corporate spending because of what the CU brief calls “Montana’s supposedly unique history, geography, politics, and economy.” The CU brief continued, “The Montana Supreme Court’s state-specific analysis makes this case an exceedingly poor vehicle to reexamine the broader constitutional questions settled in Citizens United.” The US Supreme Court’s ruling in Citizens United should bind Montana as well as the other 49 states, the CU brief argued, saying that “state courts—like federal courts—have an unwavering obligation to uphold the Constitution of the United States and follow this Court’s decisions until they are withdrawn or modified.… They are not freed from that constitutional obligation where the decision of this Court is controversial or unpopular, where it was rendered by a divided Court, or where state officials disagree with the decisions as a matter of policy.” Instead, the brief claimed, Montana’s high court has promulgated “a transparent attempt to circumvent the application of this Court’s precedent to a state statute that is materially indistinguishable from the federal prohibition on corporate independent expenditures struck down by this Court in Citizens United. Such constitutional mischief should proceed no further.” The liberal news Web site Think Progress notes that Senator McConnell, who files a brief urging summary reversal today, has argued against campaign finance reform for a decade, and was one of the plaintiffs in an unsuccessful 2002 lawsuit attempting to reverse a legislative ban on corporate donations (see December 10, 2003). And, it notes, the US Chamber of Commerce is one of the biggest donors in the 2012 elections. [Lyle Denniston, 5/1/2012; Think Progress, 5/2/2012] The Supreme Court will indeed overrule the Montana high court’s decision (see June 25, 2012).

Entity Tags: US Chamber of Commerce, Citizens United, Free Speech for People, Mitch McConnell, US Supreme Court, Montana Supreme Court, Think Progress (.org)

Timeline Tags: Civil Liberties

Jeffrey Toobin in 2007.Jeffrey Toobin in 2007. [Source: Wikimedia]Author and political pundit, Jeffrey Toobin, publishes an in-depth article for the New Yorker showing that Chief Justice John Roberts engineered the 2010 Citizens United Supreme Court decision (see January 21, 2010), moving it from a case that could well have been considered and decided on a relatively narrow basis to a sweeping decision that reformed the nation’s campaign finance structure. Toobin writes that the underlying issue was quite narrow: the conservative advocacy organization Citizens United (CU) wanted to run a documentary attacking presidential candidate Hillary Clinton (D-NY) on “video on demand” cable broadcast (see January 10-16, 2008). Under the McCain-Feingold campaign finance legislation (see March 27, 2002 and December 10, 2003), the Federal Election Commission (FEC) disallowed the broadcast because it would come 30 days or less before primary elections. CU challenged the decision in court (see January 10-16, 2008, March 24, 2008, March 15, 2009, June 29, 2009, and September 9, 2009). [New Yorker, 5/21/2012] Toobin’s article is an excerpt from his forthcoming book The Oath: The Obama White House vs. The Supreme Court. It is dated May 21, but appears on the New Yorker’s Web site on May 14. [Tom Goldstein, 5/14/2012]
Oral Arguments - During the initial arguments (see March 15, 2009), attorney Theodore Olson, the former solicitor general for the Bush administration, argued a narrow case: that McCain-Feingold’s prohibitions only applied to television commercials, not to full-length documentary films. Olson argued, “This sort of communication was not something that Congress intended to prohibit.” Toobin writes: “Olson’s argument indicated that there was no need for the Court to declare any part of the law unconstitutional, or even to address the First Amendment implications of the case. Olson simply sought a judgment that McCain-Feingold did not apply to documentaries shown through video on demand.… If the justices had resolved the case as Olson had suggested, today Citizens United might well be forgotten—a narrow ruling on a remote aspect of campaign-finance law.” However, Justice Antonin Scalia, one of the most vocal opponents of campaign finance restrictions on the Court (see September 26, 1986, December 15, 1986, March 27, 1990, June 26, 1996, June 16, 2003, December 10, 2003, and June 25, 2007), seemed disappointed in the limited nature of Olson’s argument, Toobin writes. The oral arguments expand the case far beyond Olson’s initial position. Olson’s initial intention was to narrow the case so that the Court would not have to expand its scope to find in favor of CU.
Change of Scope - Ironically, the government’s lead lawyer, Deputy Solicitor General Malcolm Stewart, may well have changed the scope of the case in favor of a broader interpretation. Traditionally, lawyers with the solicitor general (SG)‘s office are far more straightforward with the Court than is usual in advocacy-driven cases. Toobin writes: “The solicitor general’s lawyers press their arguments in a way that hews strictly to existing precedent. They don’t hide unfavorable facts from the justices. They are straight shooters.” Stewart, who had clerked for former Justice Harry Blackmun and a veteran of the SG office since 1993, is well aware of the requirements of Court arguments. But, Toobin writes, Stewart fell into a trap, prompted by Justice Samuel Alito’s pointed questioning about the government’s ability to ban or censor printed materials—i.e. books—under McCain-Feingold—and follow-up questions by Roberts and Justice Anthony Kennedy, that led him to claim incorrectly that the government could indeed censor books under the law. Stewart’s incorrect assertion gave Roberts and his colleagues the chance to overturn McCain-Feingold on the grounds of the First Amendment right to freedom of speech.
Second Arguments - The second arguments were held on September 9, 2009 (see September 9, 2009). The concept of “money equals speech” goes back at least as far as the 1976 Buckley decision (see January 30, 1976), and the five conservative justices were poised to stretch that definition much farther than has previously been done.
Majority Opinion - Toobin writes that Roberts’s decision was then to decide “how much he wanted to help the Republican Party. Roberts’s choice was: a lot.” Roberts assigned the opinion to Kennedy, the “swing” justice who had already written an expansive opinion gutting almost a century’s worth of campaign finance legislation. Kennedy tends to “swing wildly in one direction or another,” Toobin writes, “an extremist—of varied enthusiasms.” In the area of campaign finance, he has consistently “swung” to the conservative side of the argument. He is, Toobin writes, “extremely receptive to arguments that the government had unduly restricted freedom of speech—especially in the area of campaign finance.” Moreover, Kennedy enjoys writing controversial and “high-profile” opinions. Toobin says that Roberts’s choice of Kennedy to write the opinion was clever: Roberts came onto the Court promising to conduct himself with judicial modesty and a respect for precedent. Kennedy, with his draft opinion at the ready, was a better choice to write an opinion that lacked either modesty or a respect for Court precedence. Roberts, Toobin writes, “obtained a far-reaching result without leaving his own fingerprints.” Kennedy, in an often-eloquent opinion that did not deal with the gritty reality of the Citizens United case, stated that any restraint of money in a campaign risked infringing on free speech. “Speech is an essential mechanism of democracy, for it is the means to hold officials accountable to the people. The right of citizens to inquire, to hear, to speak, and to use information to reach consensus is a precondition to enlightened self-government and a necessary means to protect it.… By taking the right to speak from some and giving it to others, the government deprives the disadvantaged person or class of the right to use speech to strive to establish worth, standing, and respect for the speaker’s voice. The government may not by these means deprive the public of the right and privilege to determine for itself what speech and speakers are worthy of consideration. The First Amendment protects speech and speaker, and the ideas that flow from each.” Kennedy also reaffirmed the Court’s perception that corporations deserve the same First Amendment protections enjoyed by individuals. Kennedy’s opinion found, in Toobin’s words, that “[t]he Constitution required that all corporations, for-profit and nonprofit alike, be allowed to spend as much as they wanted, anytime they wanted, in support of the candidates of their choosing.” One of the only provisions remaining in McCain-Feingold after Kennedy’s opinion was the ban on direct corporate contributions to candidates.
Fiery Dissent from 'Liberal' Stevens - Toobin reminds readers that the elder statesman of the “liberal” wing of the Court at the time, John Paul Stevens, is a “moderate Midwestern Republican,” one of the last of a “vanishing political tradition.” Though Stevens’s views have migrated left on some issues, such as the death penalty, Toobin writes that the perception of Stevens as a Court liberal is mostly because of the Court’s steady progression to the right. Toobin writes that the 90-year-old Stevens has grown dispirited in recent years, as the conservative wing of the Court, led by Scalia, Alito, and Roberts with Clarence Thomas and often Kennedy in tow, overturned one Court precedent after another. “The course of Citizens United represented everything that offended Stevens most about the Roberts Court,” Toobin writes. Much of Stevens’s objections to the Roberts Court are rooted in procedure; he is deeply troubled by the Citizens United case being transformed by Roberts and his conservative colleagues from a narrowly focused case about a single McCain-Feingold provision to what Toobin calls “an assault on a century of federal laws and precedents. To Stevens, it was the purest kind of judicial activism.” Stevens wrote in his angry dissent, “Five justices were unhappy with the limited nature of the case before us, so they changed the case to give themselves an opportunity to change the law.” A simple change in the McCain-Feingold law to disallow its application to full-length documentaries the CU case was sparked by, or even to nonprofit organizations such as CU, would have been appropriate, Stevens wrote. He penned a 90-page dissent, the longest of his career, blasting almost every aspect of Kennedy’s decision, starting with Kennedy’s ignoring of precedent and continuing with a refutation of Kennedy’s perception of the Constitutional definitions of “censorship” and “free speech.” Stevens was angered by Kennedy’s equivocation of corporations with people. “The Framers thus took it as a given that corporations could be comprehensively regulated in the service of the public welfare,” he wrote. “Unlike our colleagues, they had little trouble distinguishing corporations from human beings, and when they constitutionalized the right to free speech in the First Amendment, it was the free speech of individual Americans that they had in mind.” Congress has drawn significant distinctions between corporations and people for over a century, he wrote: “at the federal level, the express distinction between corporate and individual political spending on elections stretches back to 1907, when Congress passed the Tillman Act” (see 1907). He even challenged Kennedy’s stated fear that the government might persecute individuals’ speech based on “the speaker’s identity,” sarcastically noting that Kennedy’s opinion “would have accorded the propaganda broadcasts to our troops by ‘Tokyo Rose’ [a famed Japanese propagandist] during World War II the same protection as speech by Allied commanders.” According to Toobin, Stevens’s law clerks disliked the dated reference, but Stevens, a Navy veteran, insisted on keeping it. Toobin writes that “Stevens’s conclusion was despairing.” Stevens concluded: “At bottom, the Court’s opinion is thus a rejection of the common sense of the American people, who have recognized a need to prevent corporations from undermining self-government since the founding, and who have fought against the distinctive corrupting potential of corporate electioneering since the days of Theodore Roosevelt.… It is a strange time to repudiate that common sense. While American democracy is imperfect, few outside the majority of this Court would have thought its flaws included a dearth of corporate money in politics.” Toobin notes that as “impressive” as Stevens’s dissent may have been, it was Kennedy’s opinion that “was reshaping American politics.”
Reaction - In his State of the Union address six days after the verdict, President Obama referenced Justice Ruth Bader Ginsburg’s concerns about foreign influence in American politics by saying, “With all due deference to separation of powers, last week the Supreme Court reversed a century of law that I believe will open the floodgates for special interests—including foreign corporations—to spend without limit in our elections” (see January 27-29, 2010). Democrats cheered as Obama said, “I don’t think American elections should be bankrolled by America’s most powerful interests or, worse, by foreign entities.” Alito’s mouthing of the words “not true” stirred some controversy; Toobin notes that Alito was technically correct, as “Kennedy’s opinion expressly reserved the question of whether the ruling applied to foreign corporations.” However, Toobin notes, “as Olson had argued before the justices, the logic of the Court’s prior decisions suggested that foreign corporations had equal rights to spend in American elections.” With the Citizens United decision and a March 2010 decision that allowed for the formation of “super PACs” (see March 26, 2010), the way was clear for what Toobin calls “presidential campaigns in 2012 that were essentially underwritten by single individuals.” He notes the billionaires that almost single-handedly supported Republican presidential candidates (see February 21, 2012, February 16-17, 2012, February 21, 2012, March 26, 2012, and April 22, 2012), and the efforts of organizations like Crossroads GPS that have to date raised tens of millions of dollars for Republican candidates (see May 2, 2012). Toobin believes that the Court will continue to deregulate campaign finance, noting the 2011 decision that invalidated Arizona’s system of public financing that state enacted after a series of campaign finance scandals (see June 27, 2011). He concludes, “The Roberts Court, it appears, will guarantee moneyed interests the freedom to raise and spend any amount, from any source, at any time, in order to win elections.” [New Yorker, 5/21/2012]
Criticisms of the Article - Toobin’s article will engender significant criticism, from nuanced questioning of particular elements of Toobin’s story (see May 14, 2012) to accusations of outright “fictionalizing” (see May 17, 2012) and “libelous” claims (see May 15-17, 2012).

Entity Tags: Clarence Thomas, US Supreme Court, Citizens United, Barack Obama, Antonin Scalia, Anthony Kennedy, American Crossroads GPS, Tillman Act, Bipartisan Campaign Reform Act of 2002, Theodore (“Ted”) Olson, Ruth Bader Ginsberg, John Paul Stevens, John G. Roberts, Jr, Malcolm Stewart, Jeffrey Toobin, Republican Party, Hillary Clinton, Samuel Alito, Federal Election Commission

Timeline Tags: Civil Liberties

Ed Whelan of the conservative National Review is highly critical of a recent article by the New Yorker’s Jeffrey Toobin about the internal decision-making process behind the 2010 Citizens United decision (see January 21, 2010 and May 14, 2012). Elements of Toobin’s narrative have already been questioned by law professors Thomas Goldstein and Jonathan Adler (see May 14, 2012), though both professors are generally supportive of the article and recommend it for reading. In his first article, Whelan writes that the evidence “doesn’t support his thesis,” and promises a followup article that addresses “some of Toobin’s wild distortions about” the decision, including what he calls Toobin’s “baseless libel” against Chief Justice John Roberts, referencing Toobin’s implication that Roberts engineered the sweeping campaign finance reform of the decision in order to aid Republican candidates. Whelan interprets Toobin’s evidence to say that it shows Justice Anthony Kennedy, not Roberts, enlarged the scope of the Citizens United decision; however, Whelan believes neither interpretation. Some of Toobin’s interpretation of events hinges on a draft dissent penned by Justice David Souter that was withdrawn after Roberts agreed to let the case be re-argued (see June 29, 2009 and September 9, 2009). Whelan implies that he doubts the existence of such a dissent, an implication that cannot be disproven, as Souter sealed his Court records after his retirement (see May 14-16, 2012). If the dissent does exist, Whelan doubts that Toobin has read it. He concludes by casting aspersions on Toobin’s assertion that Roberts engineered the results of the decision “without leaving his own fingerprints.” Roberts cast the deciding vote in the 5-4 split, Whelan notes, and adds that Roberts did not entirely escape criticism for the ruling after it was issued. [National Review, 5/15/2012]
Part Two - The next day, Whelan publishes the second part of the article, and condemns Toobin for asserting that Roberts crafted the decision with the intention of helping Republican candidates in upcoming elections. He calls the assertion “scurrilous,” and says Toobin presents “not an iota of evidence” for the claim. Whelan then writes that no evidence exists to show that the decision has helped Republican candidates more than Democrats (see November 1, 2010 and January 21, 2012), apparently ignoring two years’ worth of evidence showing that in the wake of decisions, outside funding of Republican candidates has swamped Democrats’ efforts to retain parity (see August 2, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, October 30, 2010, Mid-November 2010, January 26, 2011 and After, March 2011, (May 4, 2011), May 5, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 8, 2011, December 1, 2011, January 6, 2012, January 23, 2012, February 6, 2012, February 9, 2012, February 21, 2012, February 21, 2012, February 21, 2012, March 9, 2012, March 26, 2012, Late March 2012, April 13-20, 2012, April 22, 2012, and May 2, 2012). He cites an article by Weekly Standard contributor Andrew Ferguson that denies the “rich and powerful” donate more to Republicans than Democrats, where the only “evidence” Ferguson cited was his assertion that “Democrats are the party of what Democrats used to call the superrich. Only Democrats seem not to realize this.” [National Review, 5/16/2012]
Final Thoughts - Whelan’s final article on the subject approvingly cites an equally negative critique of the Toobin article from Weekly Standard writer Adam White (see May 17, 2012), and insults law professor Richard Hasen’s perspective on the matter (see May 14-16, 2012); after noting that Hasen is a “[l]aw professor and election-law expert,” Whelan advises Hasen to read White’s column more closely. He also derides the idea that the Souter dissent is “secret,” noting that it would have been circulated among the other eight justices, and Justice John Paul Stevens would have had it available to him for his own published dissent. He then quotes Hasen’s critique of Stevens’s “somewhat meandering and ineffective” dissent, turns the phrasing around to insult Souter’s writing style, and says that Souter’s dissent may “reflect… too much of Souter’s draft dissent.” In attacking Hasen’s request for Souter to release the dissent, he contradicts himself by noting that the dissent is “confidential case information” that should remain out of public view. [National Review, 5/17/2012]

Entity Tags: John G. Roberts, Jr, Anthony Kennedy, Andrew Ferguson, Adam White, David Souter, Jeffrey Toobin, Richard L. Hasen, Thomas Goldstein, John Paul Stevens, Jonathan Adler, Ed Whelan

Timeline Tags: Civil Liberties

Senate races are seeing the impact of huge “independent” expenditures that resulted from the 2010 Citizens United decision (see January 21, 2010), and as in so many other instances, Republicans are reaping most of the benefits of these expenditures (see August 2, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, October 30, 2010, Mid-November 2010, January 26, 2011 and After, March 2011, (May 4, 2011), May 5, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 8, 2011, December 1, 2011, January 6, 2012, January 23, 2012, February 6, 2012, February 9, 2012, February 21, 2012, February 21, 2012, February 21, 2012, March 9, 2012, March 26, 2012, Late March 2012, April 13-20, 2012, April 22, 2012, and May 2, 2012). Senator Sherrod Brown (D-OH) and former Governor Tim Kaine (D-VA) are being outspent by more than a 3-1 ratio by their Republican opponents and the third-party groups that support those opponents. Brown and his allies have spent some $2.5 million on television advertising, but are being challenged by an $8 million expenditure by such groups as American Crossroads and Crossroads GPS. Brown says: “These individuals, these billionaires, realize that small numbers of people can have a huge impact. It’s very one-sided. This outside money is bad for the system.” Kaine and his supporters have spent $385,000, but face a $1.9 million expenditure by such groups as the US Chamber of Commerce. Crossroads GPS is airing a series of ads accusing Kaine of having a “reckless” spending record as governor, including turning a $1 billion surplus into an almost-$4 billion shortfall, an assertion fact-checking organizations have declared to be false. In turn, Crossroads GPS spokesperson Jonathan Collegio upped the claim, telling a reporter that Kaine had left office with a $3 trillion shortfall. The Virginia Constitution requires the state to maintain a balanced budget, and factcheckers have said that Kaine balanced budgets during his term. Missouri Republicans are enjoying a $7 million-$2 million disparity in their challenge to Senator Claire McCaskill (D-MO). In Florida, US Representative Connie Mack (R-FL) and his supporters have run almost 6,500 television ads against Senate incumbent Bill Nelson (D-FL) with no response from Nelson’s campaign. One Mack ad accused Nelson of supporting a tax-funded program to research the effects of cocaine on monkeys, a claim factcheckers have found to be false. Another Mack ad attempts to link Nelson to the Obama administration’s health care reform legislation, which Republicans have dubbed “Obamacare,” and says 20 million people will lose medical coverage because of the reform, a claim factcheckers have found to be false. The re-election campaign of President Obama is hoarding resources, expecting to have to combat an onslaught of spending by Republican contender Mitt Romney (R-MA) and his supporters (see Late May 2012), and is thusly contributing little to Congressional races. Advertising executive Ken Goldstein says: “There’s so much oxygen being sucked up by the Obama campaign. Democrats are also not going to have the same kind of money that Republican outside groups are going to have.” Obama campaign manager Jim Messina confirms that the Obama campaign is not prepared to contribute large sums to Congressional contenders, saying: “Our top priority and focus is to secure the electoral votes necessary to re-elect the president. There’s no doubt that Democratic campaigns face a challenging new political landscape with special interests giving unlimited amounts to super PACs.” Scott Reed, a US Chamber of Commerce official who worked on the 1996 Bob Dole presidential campaign, says the sharp disparity in spending will not matter at the end of the campaigns: “It comes out in the wash at the end of the day in the sense that Obama is a ferocious fundraiser-in-chief. There’s no question the pro-business and pro-growth groups are spending early and more aggressively than ever because they recognize the stakes of the election are so high.” [Bloomberg News, 5/29/2012]

Entity Tags: Clarence W. (“Bill”) Nelson, US Chamber of Commerce, American Crossroads, 2012 Obama presidential election campaign, Claire McCaskill, Sherrod Brown, Tim Kaine, Obama administration, Connie Mack, Jim Messina, Scott Reed, Ken Goldstein, American Crossroads GPS, Mitt Romney presidential campaign (2012)

Timeline Tags: Civil Liberties

Data analysis by the liberal news magazine Mother Jones for campaign fundraising in the presidential campaigns has the Republicans and their supporters outraising and outspending Democrats almost across the board. Super PACs continue to lead in money raised and spent; Republicans outraised Democrats by a 7.7:1 ratio. These third-party “independent” groups (see March 26, 2010) have raised $218 million between them. President Obama has outraised challenger Mitt Romney (R-MA) by over two to one, $217.1 million to $97.9 million. But super PACs operating on Romney’s behalf have more than closed that gap. Two ads released almost simultaneously by the Romney campaign and the super PAC American Crossroads in recent days criticize Obama on the same grounds, both criticizing federal investments in energy companies like Solyndra. A similar pattern has recently been observed when the Obama campaign and his super PAC Priorities USA recently released television ads during the same time period. Mother Jones observes, “It’s illegal for candidates and super PACs to coordinate their messages, but even if they did, the fines would likely be negligible, and the Federal Election Commission can’t even agree on what exactly defines ‘coordination.’” [Center for Responsive Politics, 2012; Mother Jones, 6/1/2012]

Entity Tags: Mother Jones, Mitt Romney presidential campaign (2012), 2012 Obama presidential election campaign, American Crossroads

Timeline Tags: Civil Liberties, 2012 Elections

Former Senator Russ Feingold (D-WI) writes an article for the Stanford Law Review discussing the dominance of “big money” in the nation’s elections in the wake of the 2010 Citizens United decision (see January 21, 2010), documenting his belief that the rise in small-donor contributions that put Democrats in office in 2006 and 2008 led to the Citizens United backlash, and calling for sweeping campaign finance reform. Feingold writes, “Without a significant change in how our campaign finance system regulates the influence of corporations, the American election process, and even the Supreme Court itself, face a more durable, long-term crisis of legitimacy.” Feingold heads Progressives United, an advocacy group that pushes for the overturning of the Citizens United decision and campaign finance legislation.
Background - Feingold gives the background of campaign finance reform in America: the 1907 Tillman Act which banned corporations from spending their money in elections (see 1907), which he says was spurred by the realization that “corporate influence corrupts elections”; the Taft-Hartley Act of 1947, which extended the Tillman ban to labor unions (see June 23, 1947); and more recent legislation, including the Bipartisan Campaign Reform Act of 2002 (BCRA—see March 27, 2002), which Feingold co-authored with Senator John McCain (R-AZ). “And for several election cycles, between 2004 and 2008, our system seemed headed towards more fair and transparent elections,” he writes. “But Citizens United changed everything.” The “road to corruption” in modern elections, he says, began when Democrats in the early 1990s began exploiting a loophole in finance regulation that allowed the creation of “soft money” groups (see January 8, 1980, November 28, 1984, December 15, 1986, and December 10, 2003) that allowed parties to solicit unlimited amounts of donations from corporations, labor unions, and individuals. “This system was corrupting,” Feingold writes. “Senators would solicit gigantic, unregulated contributions from the same corporations that had legislation pending on the Senate floor. Both parties were guilty.” The BCRA plugged the “soft money” loophole. Even as the BCRA began to reform campaign finance practices, Feingold writes, “the same corporate interests that fought McCain-Feingold set to work to dismantle it. In what was clearly an orchestrated effort by opponents of campaign reform (see January 25, 2010), a group called Citizens United produced a movie savaging the record of then-Senator Clinton (see January 10-16, 2008). Ostensibly intended to educate the public about conservative concerns regarding Clinton’s run for the presidency, the film was little more than a legal vehicle to challenge some of the common-sense restrictions enacted by the BCRA (see January 10-16, 2008, March 24, 2008, March 15, 2009, June 29, 2009, and September 9, 2009). Specifically, the creators of the film sought to challenge the BCRA’s requirement that electioneering communications—commonly known as ‘phony issue ads’ that attack a candidate in the days before the election, but don’t explicitly advocate voting for or against that candidate—be subject to the same disclosure requirements and contribution limits as other campaign ads.” The case was argued on narrow grounds about a specific provision of the BCRA, but the Court’s conservative justices, led by Chief Justice John Roberts, “manipulated the Court’s process to achieve that result” (see May 14, 2012). Justice John Paul Stevens wrote in his dissent to the majority opinion, “[F]ive justices were unhappy with the limited nature of the case before us, so they changed the case to give themselves an opportunity to change the law.” The ruling, Feingold writes, “created a framework for corruption parallel to ‘soft money.’” Instead of “soft money” organizations, Citizens United led to the creation of the “super PAC” (see March 26, 2010, June 23, 2011, November 23, 2011, January 4, 2012, January 4, 2012, January 13, 2012, and February 20, 2012). It has also called into doubt the legitimacy of US elections themselves, due to the “increasing skepticism about the campaign finance system.” Many voters now believe “that the average participant’s small contribution is irrelevant, and that the average person’s vote is grossly outweighed by the gigantic contributions now allowed.”
Internet Politics and Small-Donor Contributions - In part due to the BCRA, Feingold writes, “[f]or three election cycles, in 2004, 2006, and 2008, our system of campaign financing began to take shape in a way that channeled citizen participation and provided incentive for candidates to turn to the democratic support of online activists and small-dollar contributors.” He cites the 2004 presidential campaign of Howard Dean (D-VT), who went on to chair the Democratic National Committee (DNC), as the first powerful instance of “online organizing,” using the Internet to garner millions of dollars in small donations from individual citizens. In 2008, the presidential campaign of Barack Obama (D-IL) pushed the Dean innovation even further. The Obama campaign “raised a historic amount in small-dollar contributions,” Feingold writes, and created an online platform to engage supporters. All told, the Obama campaign raised $500 million online.
An Ineffective FEC - By 2008, he writes, the Federal Election Commission (FEC) was completely impotent. The agency “has been fatally flawed since the time of its creation—any administrative law professor will point out that a law enforcement commission with an even number of commissioners [six] is probably designed specifically not to enforce the law at all,” he writes. By 2008, the FEC only had two seated commissioners, and in effect was not enforcing campaign laws whatsoever. Even after eventually receiving a full complement of commissioners, he writes, the agency “remains ineffective, as even Democratic violators go unpunished as conservative commissioners remain unwilling, philosophically, to enforce any campaign finance law.”
2012: Corporations Trump Citizens - In 2012, corporate contributions far outweigh small-dollar donations by individuals. “[T]he most prominent actors in the 2012 election cycle are unnamed corporations and a small group of influential—primarily conservative—billionaires.” Seventy percent of registered voters think super PACs should be illegal, according to polls, and the favorability rating of the Court has dropped a significant amount. Overall, Feingold writes, the public is firmly against the Citizens United paradigm of campaign finance. He advocates strong legislation from Congress, fixing the “broken system of presidential public financing,” and replacing the “dysfunctional” FEC “with a true enforcement agency.” The ultimate repair of campaign finance lies with the Court, he says, noting that the Court has a chance to do some early repair with the Montana case it is now considering (see June 25, 2012). Regardless of what the Court does or does not do in the Montana case, he concludes, “[t]oday’s framework for corruption cannot stand.” [Stanford Law Review, 6/14/2012]

Entity Tags: Howard Dean, Bipartisan Campaign Reform Act of 2002, Barack Obama, Citizens United, Hillary Clinton, Russell D. Feingold, Federal Election Commission, John McCain, John G. Roberts, Jr, Stanford Law Review, John Paul Stevens

Timeline Tags: Civil Liberties

The US Supreme Court, without hearing arguments, strikes down a century-old Montana ban on corporate spending in elections (see December 30, 2011 and After), effectively reaffirming its Citizens United decision to allow unlimited, untraceable corporate spending on elections (see January 21, 2010). Some observers expected the Court to temper its original finding in the Citizens United decision, but such is not the outcome. The case, American Tradition Partnership v. Bullock, originates in Montana’s 19th-century ban on corporate spending in elections. In December 2011, the Montana Supreme Court upheld the law (see December 30, 2011 and After), finding that the Citizens United ruling allowed for restrictions on corporate political speech if the government could demonstrate that the restrictions were as minimal as possible to achieve a compelling governmental interest. Today, the US Supreme Court rules 5-4 that the Montana Supreme Court’s argument is invalid, saying there is “no serious doubt” that the Citizens United ruling supersedes Montana state law. Two dissenting Justices, Ruth Bader Ginsberg and Stephen Breyer, argued for the case to be presented to the Court, viewing the case as “an opportunity to consider whether, in light of the huge sums currently deployed to buy candidates’ allegiance, Citizens United should continue to hold sway.” However, the Court’s conservative majority strikes down the Montana Supreme Court’s decision and invalidates the CPA. Breyer writes in his dissent, “Even if I were to accept Citizens United, this Court’s legal conclusion should not bar the Montana Supreme Court’s finding, made on the record before it, that independent expenditures by corporations did in fact lead to corruption or the appearance of corruption in Montana.” The next recourse for Montana citizens is Ballot Initiative I-166, which would establish that corporations are not people in Montana and would call on Montana’s Congressional delegation to support a constitutional amendment to overturn Citizens United. [American Tradition Partnership, Inc., FKA Western Tradition Partnership, Inc., et al v. Steve Bullock, Attorney General Of Montana, et al, 6/25/2012 pdf file; SCOTUSBlog, 6/25/2012; Reuters, 6/25/2012; OMB Watch, 6/25/2012; OMB Watch, 7/10/2012] Democratic campaign lawyer Marc Elias says of the decision: “To the extent that there was any doubt from the original Citizens United decision broadly applies to state and local laws, that doubt is now gone. To whatever extent that door was open a crack, that door is now closed.” Senator Charles Schumer (D-NY) says that the Court is “[f]or apparently political reasons… further tipping the balance of power in America in favor of deep-pocketed, outside interests.” Senate Minority Leader Mitch McConnell (R-KY) calls the decision an “important victory for freedom of speech.” [Washington Post, 6/25/2012]

Entity Tags: Stephen Breyer, Mitch McConnell, Marc Elias, Charles Schumer, Montana Supreme Court, US Supreme Court, Ruth Bader Ginsberg

Timeline Tags: Civil Liberties

Former Senator Russ Feingold (D-WI) says that the US Supreme Court’s recent summary reversal of a Montana Supreme Court decision to uphold Montana’s ban on corporate political spending (see June 25, 2012) proves that the US Supreme Court is actively working to dismantle representative democracy. Referring to the 2010 Citizens United case that formed the basis for the Court’s recent decision (see January 21, 2010), Feingold says: “This court had one fig leaf left after this one awful decision two years ago.” The justices could claim “they were politically naive or didn’t know what would happen when they overturned 100 years of law on corporate contributions.” But after the American Tradition Partnership decision that reversed the Montana high court, he says, “They have shown themselves wantonly willing to undo our democracy.” Feingold continues: “This is one of the great turning points, not only in campaign finance but also in our country’s history. I believe we’re in a constitutional crisis.” Feingold heads an anti-Citizens United group called Progressives United, which works to raise awareness about the effects of the decisions and to persuade Congress to overturn the decision via legislation. He says the Supreme Court has “clearly become… a partisan arm of corporate America. This is a real serious problem for our democracy. It’s essentially a court that rules in one direction.… [T]his court is no longer perceived as the independent arbiter of the law that the people expect them to be.” A recent study by the Constitutional Accountability Center shows that during the tenure of Chief Justice John Roberts, the US Chamber of Commerce, the nation’s most powerful business lobbying organization (see January 21-22, 2010, June 26-28, 2010, July 26, 2010, August 2, 2010, October 2010, and February 10, 2011), which filed a brief asking the Supreme Court to rule against the Montana high court (see April 30, 2012), has seen victory in 68 percent of the cases in which it has filed briefs, a much higher success record than in earlier years. Feingold wrote an article for the Stanford Law Review claiming that the 2006-2008 rise in small donor contributions spurred corporations and the Supreme Court to create the Citizens United decision (see June 14, 2012). Feingold says: “The corporate interest in America saw the face of democracy, and so what they did was engineer this decision. They used it as an excuse to stop citizen democracy in this country.” Nevertheless, Feingold is confident that grassroots organizations such as Progressives United and efforts in other venues, including Congress and the Obama administration, will eventually see Citizens United overturned. For now, he quotes his campaign finance reform partner, Senator John McCain, who recently said, “I promise you there will be huge scandals” (see March 27, 2012). Feingold says, “There already is a scandal.” [Huffington Post, 6/27/2012]

Entity Tags: Russell D. Feingold, Constitutional Accountability Center, John G. Roberts, Jr, Progressives United, John McCain, Obama administration, US Chamber of Commerce, US Supreme Court

Timeline Tags: Civil Liberties

Senate Democrats try twice within a two-day period to bring the DISCLOSE Act, a campaign finance bill that would require the disclosure of the identities of political donors (see July 26-27, 2010), to the floor for a vote. If enacted, the Democracy Is Strengthened by Casting Light On Spending in Elections (DISCLOSE) Act would overturn many elements of the Supreme Court’s controversial Citizens United decision that allows virtually unlimited and anonymous political spending by corporations and other entities (see January 21, 2010). If passed, it would create new campaign finance disclosure requirements and make public the names of “super PAC” contributors (see March 26, 2010). Individuals, corporations, labor unions, and tax-exempt charitable organizations would, under the act, report to the Federal Election Commission (FEC) each time they spend $10,000 or more on campaign-related expenditures. The bill would also “prohibit foreign influence in federal elections [and] prohibit government contractors from making expenditures with respect to such elections.” Both Senate Democratic efforts are thwarted by a Republican filibuster. Democrats are unable to muster the 60 votes needed to grant “cloture,” which would break the filibuster and bring the bill to the floor to be voted up or down. The last vote supports cloture 53-45, not enough to invoke cloture; the first vote was 51-44 in favor. Senators Mark Kirk (R-IL), who is recovering from a seizure, and Richard Shelby (R-AL) do not vote. Democrats force an official recording of each senator’s vote, placing the names of senators voting for and against the bill in the public record. Democrats have tried since 2010 to pass the bill (see July 26-27, 2010). The bill, sponsored in its latest iteration by Sheldon Whitehouse (D-RI), would force unions, nonprofits, and corporate interest groups that spend $10,000 or more during an election cycle to disclose donors who give $10,000 or more. Whitehouse modified the original version of the bill to no longer require sponsors of “electioneering” ads to put a disclaimer at the end, and pushed the effective date of the bill to 2013, meaning it would not impact the 2012 presidential campaign. Whitehouse and 15 other senators take to the floor to press for its passage. “When somebody is spending the kind of money that is being spent, a single donor making, for instance, a $4 million anonymous contribution, they’re not doing that out of the goodness of their heart,” he tells the Senate. Democrats urge Republicans who have previously spoken out in favor of transparency and campaign finance reform to vote for the bill, targeting Senators Lamar Alexander (R-TN), Scott Brown (R-MA), John McCain (R-AZ), and Susan Collins (R-ME). However, none of them break ranks with their fellow Republicans. McCain, who co-authored the McCain-Feingold campaign finance bill of 2002 (see March 27, 2002) and has spoken out against the Citizens United Supreme Court decision that allows corporations and unions to anonymously spend unlimited amounts on “electioneering” activities (see January 21, 2010), refuses to join Democrats in supporting the bill. He tells the Senate before the final vote, “The American people will see it for what it is—political opportunism at its best, political demagoguery at its worst.” McCain asks Senate Democrats “to go back to the drawing board and bring back a bill that is truly fair, truly bipartisan, and requires true full disclosure for everyone.” Senate Minority Leader Mitch McConnell says the bill would “send a signal to unions that Democrats are just as eager to do their legislative bidding as ever,” and that it “amounts to nothing more than member and donor harassment and intimidation.” In his weekly press conference shortly before the floor votes, McConnell says of the bill: “This could best be described as a selective disclosure act. It has managed to generate opposition from everybody from the ACLU to [the] NRA. That’s quite an accomplishment.” Senate Majority Leader Harry Reid (D-NV) says of the bill: “[I]n a post-Citizens United world, the least we should do is require groups spending millions on political attack ads to disclose their largest donors. We owe it to voters to let them judge for themselves the attacks—and the motivations behind them.” And Ellen Miller of the Sunlight Foundation says that the Senate is “thumbing their noses at the very notion of democratic elections.” [Politico, 7/14/2012; OMB Watch, 7/24/2012] After the bill fails to pass, Reid says, “It is obvious Republicans’ priority is to protect a handful of anonymous billionaires—billionaires willing to contribute hundreds of millions of dollars to change the outcome of a close presidential contest.” [The Hill, 7/24/2012]

Entity Tags: Mitch McConnell, Harry Reid, Ellen Miller, DISCLOSE Act of 2010, John McCain, Mark Steven Kirk, Susan Collins, Lamar Alexander, US Senate, Scott Brown, Richard Shelby, Sheldon Whitehouse

Timeline Tags: Civil Liberties

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