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Context of 'March 6, 2000: New York Times Decries Recent ‘Issue Ads’ by Group Sympathetic to Bush Campaign, Says Ads Are Symptomatic of Dysfunctional Campaign Finance Laws'

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Congress passes the Civil Service Reform Act, also called the Pendleton Act, which expands on the previously passed Naval Appropriations Bill, which prohibited government officials and employees from soliciting campaign donations from Naval Yard workers (see 1867). This bill extends the law to cover all federal civil service workers. Before this law goes into effect, government workers are expected to make campaign contributions in order to keep their jobs. The law was prompted by the assassination of President James Garfield by a person who believed he had been promised a job in the Garfield administration. The law establishes a “merit system” in place of the old “patronage” system of receiving government posts. [Campaign Finance Timeline, 1999; Center for Responsive Politics, 2002 pdf file; Connecticut Network, 2006 pdf file]

Entity Tags: Naval Appropriations Bill, Civil Service Reform Act, James A. Garfield

Timeline Tags: Civil Liberties

The presidential election is plagued with scandal and large monetary expenditures. William McKinley (R-OH) is the recipient of some $16 million in spending, a lavish amount for the time. The campaigns of both McKinley and his opponent, William Jennings Bryan (D-NE), are accused of bribery and poor ethical conduct. Mark Hanna, McKinley’s chief fundraiser and the chair of the Republican National Committee (RNC), devises a system of quotas for large corporations. Hanna raises between $6-7 million in donations from corporations through this quota system, in return for strong support of a big-business agenda. McKinley promises to oppose the establishment of silver coinage, supports protective tariffs, and other pro-corporate positions. The campaign is so fraught with controversy that the public begins demanding regulation and oversight of campaign funding practices. [Campaign Finance Timeline, 1999]

Entity Tags: Mark Hanna, William Jennings Bryan, William McKinley, Republican National Committee

Timeline Tags: Civil Liberties

President Theodore “Teddy” Roosevelt, in a speech given to the US Congress, proposes that corporations be expressly forbidden by law from contributing money “to any political committee or for any political purpose.” Neither should corporate directors be permitted to use stockholders’ money for political purposes. Roosevelt does not say that corporate owners should be so restricted. Roosevelt also says federal campaigns should be publicly financed via their political parties. Roosevelt’s proposal is made in part because he was accused of improperly accepting corporate donations for his 1904 presidential campaign. [Miller Center, 12/5/1905; Center for Responsive Politics, 2002 pdf file; Moneyocracy, 2/2012] Roosevelt, who has made similar statements in the past (see August 23, 1902), will echo these proposals in additional speeches. [Connecticut Network, 2006 pdf file] Two years later, Roosevelt will sign into law a bill proscribing such donations (see 1907).

Entity Tags: Theodore Roosevelt

Timeline Tags: Civil Liberties

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 Corrupt Practices Act (FCPA), also called the Publicity Act, is passed. It will remain the backbone of American campaign finance regulation until expanded in 1925 (see 1925). It expands upon the Tillman Act’s prohibition against corporate and bank donations to federal election campaigns (see 1907) by enacting campaign spending limits on US House election campaigns. It also requires full disclosure of all monies spent and contributed during federal campaigns. In 1911, the FCPA will be amended to cover Senate elections as well, and to set spending limits on all Congressional races. However, the bill fails to provide for enforcement and verification procedures, so the law remains essentially useless. [Federal Elections Commission, 1998; Campaign Finance Timeline, 1999; Center for Responsive Politics, 2002 pdf file; Moneyocracy, 2/2012] The law is rendered even less powerful after the Supreme Court overturns its provision limiting House and Senate candidate spending. [Pearson Education, 2004]

Entity Tags: Federal Corrupt Practices Act, 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

Congress passes the Public Utilities Holding Act, which bars public utility companies from making federal campaign contributions. Essentially, the act extends the ban on corporate contributions (see 1925) to utility companies, as they are not covered under existing law, and, under the administration of President Franklin Roosevelt, are growing rapidly in power and influence. Roosevelt had been elected to office in 1932 on a platform of “good government,” a longtime staple of Democratic Party platforms. The message played particularly well with voters after the economic policies and political corruption of the administration of President Herbert Hoover, a Republican, were widely blamed for the Great Depression. Republicans, stung by the failures of the Hoover administration, also declare their support for campaign finance reform, and the act passes with little resistance. [Campaign Finance Timeline, 1999]

Entity Tags: Franklin Delano Roosevelt, Democratic Party, Republican Party, US Congress, Herbert Hoover

Timeline Tags: Civil Liberties

Amendments to the federal Hatch Act of 1939, also known as the Clean Politics Act, set limits of $5,000 per year on individual contributions to a federal candidate or political committee. However, they do not prohibit donations from the same individual to multiple committees all working for the same candidate. The restrictions apply to primary elections as well as federal elections. Additionally, they bar contributions to federal candidates from individuals and businesses working for the federal government. [Federal Elections Commission, 1998; Campaign Finance Timeline, 1999; Center for Responsive Politics, 2002 pdf file]

Entity Tags: Hatch Act of 1939

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

1944: Labor Union Forms First PAC

The first “political action committee,” or PAC, is formed by the Congress of Industrial Organizations (CIO), a powerful labor union, on behalf of the efforts to re-elect President Franklin D. Roosevelt. PAC donations come from voluntary contributions and not labor dues, and therefore the donations are not prohibited (see June 25, 1943). [Center for Responsive Politics, 2002 pdf file; National Public Radio, 2012]

Entity Tags: Franklin Delano Roosevelt, Congress of Industrial Organizations

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

In the case of United States v. Auto Workers, the Supreme Court reverses a lower court’s dismissal of an indictment against a labor union accused of violating federal laws prohibiting corporations and labor unions from making contributions or expenditures in federal elections (see June 23, 1947). Justice Felix Frankfurter writes the majority opinion; Chief Justice Earl Warren and Justices William O. Douglas and Hugo Black dissent. In a 5-3 decision, the Court finds the International Union United Automobile, Aircraft, and Agricultural Implement Workers of America liable for its practice of using union dues to sponsor television commercials relating to the 1954 Congressional elections. [UNITED STATES v. AUTO. WORKERS, 2011; Moneyocracy, 2/2012] Law professor Allison R. Hayward will later write that in her opinion the Court finding created “a fable of campaign finance reform… dictated by political opportunism. Politicians used reform to exploit public sentiment and reduce rivals’ access to financial resources.… [J]udges should closely examine campaign finance regulation and look for the improper use of legislation for political gain instead of simply deferring to Congress. Undue deference to the Auto Workers fable of reform could lead to punishment for the exercise of political rights. Correcting the history is thus essential to restoring proper checks on campaign finance legislation.” Hayward will argue that Frankfurter used a timeline of Congressional efforts to curb and reform campaign finance practices as an excuse to allow powerful political interests to exert restrictions on political opponents with less access to large election finance contributions. The case is used uncritically, and sometimes unfairly, to influence later campaign reform efforts, Hayward will argue. [Hayward, 6/17/2008 pdf file]

Entity Tags: US Supreme Court, Earl Warren, Allison R. Hayward, Felix Frankfurter, International Union United Automobile, Aircraft, and Agricultural Implement Workers of America, William O. Douglas, Hugo Black

Timeline Tags: Civil Liberties

For the first time, the clerk of the US House of Representatives does his duty under the law and collects campaign finance reports, as mandated by the 1925 Federal Corrupt Practices Act (see 1925). W. Pat Jennings, a former congressman, turns in a list of violators to the US Department of Justice. Jennings’s list is ignored. [Center for Responsive Politics, 2002 pdf file]

Entity Tags: US Department of Justice, US House of Representatives, Federal Corrupt Practices Act, W. Pat Jennings

Timeline Tags: Civil Liberties

The federal government enacts the Revenue Act as a companion, and precursor, to the omnibus Federal Election Campaign Act (FECA—see February 7, 1972). The Revenue Act creates a public campaign fund for eligible presidential candidates, beginning with the 1976 presidential election, through the provision of a voluntary one-dollar checkoff box on federal income tax returns. (This provision was actually introduced into law by the 1968 Long Act.) The law also allows for a $50 tax deduction for individual filers for contributions to local, state, or federal candidates, a provision that will be eliminated in 1978. It provides a $12.50 tax credit for the same purpose, a provision that will be raised to $50 in 1978 and eliminated in 1986. [Federal Elections Commission, 1998; Campaign Finance Timeline, 1999; Center for Responsive Politics, 2002 pdf file]

Entity Tags: Federal Election Campaign Act of 1972, Revenue Act of 1971

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 case of Pipefitters Local Union No. 562 et al v. US, the Supreme Court overturns a criminal conviction of the Pipefitters Union for violating the Smith-Connally Act (see June 25, 1943) and the Federal Corrupt Practices Act (FCPA—see 1925). That law bans labor unions from contributing to political campaigns, and Pipefitters Union officials had administered a political action committee (see 1944). The Court, citing the newly passed Federal Election Campaign Act (FECA—see February 7, 1972), overturns the conviction, ruling that FECA “plainly permits union officials to establish, administer, and solicit contributions for a political fund.” The decision is later codified by the amendments to the law (see 1974). [Campaign Finance Timeline, 1999; US Supreme Court Center, 2012]

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

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

August 8, 1974: Nixon Resigns Presidency

Richard Nixon announcing his resignation to the country.Richard Nixon announcing his resignation to the country. [Source: American Rhetoric.com]President Richard Nixon, forced to resign because of the Watergate scandal, begins his last day in office. The morning is marked by “burn sessions” in several rooms of the White House, where aides burn what author Barry Werth calls “potentially troublesome documents” in fireplaces. Nixon’s chief of staff, Alexander Haig, is preparing for the transition in his office, which is overflowing with plastic bags full of shredded documents. Haig says all of the documents are duplicates. Haig presents Nixon with a one-line letter of resignation—“I hereby resign the office of president of the United States”—and Nixon signs it without comment. Haig later describes Nixon as “haggard and ashen,” and recalls, “Nothing of a personal nature was said… By now, there was not much that could be said that we did not already understand.” Nixon gives his resignation speech at 9 p.m. [White House, 8/8/1974; White House, 8/8/1974; American Rhetoric, 2001; Werth, 2006, pp. 3-8] On August 7, Haig told Watergate special prosecutor Leon Jaworski that Congress would certainly pass a resolution halting any legal actions against Nixon. But, watching Nixon’s televised resignation speech, Jaworski thinks, “Not after that speech, Al.” Nixon refuses to accept any responsibility for any of the myriad crimes and illicit actions surrounding Watergate, and merely admits to some “wrong” judgments. Without some expression of remorse and acceptance of responsibility, Jaworski doubts that Congress will do anything to halt any criminal actions against Nixon. [Werth, 2006, pp. 30-31] Instead of accepting responsibility, Nixon tells the nation that he must resign because he no longer has enough support in Congress to remain in office. To leave office before the end of his term “is abhorrent to every instinct in my body,” he says, but “as president, I must put the interests of America first.” Jaworski makes a statement after the resignation speech, declaring that “there has been no agreement or understanding of any sort between the president or his representatives and the special prosecutor relating in any way to the president’s resignation.” Jaworski says that his office “was not asked for any such agreement or understanding and offered none.” [Washington Post, 8/9/1974]

Entity Tags: Nixon administration, Leon Jaworski, Richard M. Nixon, Alexander M. Haig, Jr., Barry Werth

Timeline Tags: Nixon and Watergate

The Federal Election Commission (FEC) hands down an “advisory opinion” that, according to the mandates of the newly passed amendments to the Federal Election Campaign Act (FECA—see 1974), allows corporations to spend general funds on solicitation of donations from stockholders and employees. The case stems from an attempt by Sun Oil Corporation to solicit employees, both union and non-union, for contributions to the corporation’s PAC, SUN PAC. The FEC’s advisory opinion, which by law is binding, reads in part, “It is the opinion of the Commission that Sun Oil may spend general treasury funds for solicitation of contributions to SUN PAC from stockholders and employees of the corporation.” The FEC’s reasoning is that the money is to be segregated according to the Supreme Court’s Pipefitters decision (see June 22, 1972), businesses have for years solicited their employees for both political and non-political causes, and FECA says that contributions to a separate segregated fund may not be secured by “job discrimination” or “financial reprisals.” Neither Congress nor the unions are pleased with the ruling. If corporations had been restricted to soliciting only their stockholders, they could have solicited only twice as many individuals as the labor unions, but with the ruling in place, corporations effectively can now solicit virtually the entire workforce of the nation. It is this decision that in part sparks the “PAC boom” among corporate PACs, which sees the number and funding of corporate PACs increase dramatically. [Campaign Finance Timeline, 1999]

Entity Tags: Federal Election Campaign Act of 1972, SUN PAC, Sun Oil Corporation, Federal Election Commission

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

The Supreme Court, in the case of First National Bank of Boston v. Bellotti, rules 5-4 that corporations have the First Amendment right to make contributions in order to influence political processes. Writing for the majority, Justice Lewis Powell finds that under the recent Buckley ruling (see January 30, 1976), corporate political donations are protected speech. Powell’s opinion finds that a Massachusetts criminal statute prohibiting corporations from spending money for the purpose of “influencing or affecting” voters’ opinions is not legitimate. The split among the justices is unusual, with Powell, a conservative, being joined by two more conservatives, Chief Justice Warren Burger and Potter Stewart, and liberals Harry Blackmun and John Paul Stevens. The four dissenters are liberals William Brennan and Thurgood Marshall, and conservatives Byron White and William Rehnquist. [FIRST NATIONAL BANK OF BOSTON v. BELLOTTI, 2012; Moneyocracy, 2/2012] Rehnquist’s standalone dissent advocates for far stricter controls on corporate spending in elections than most of the other justices’ dissents, with Rehnquist writing that such spending could “pose special dangers in the political sphere.” [Reclaim Democracy, 4/26/1978; FIRST NATIONAL BANK OF BOSTON v. BELLOTTI, 2012]

Entity Tags: Lewis Powell, Byron White, John Paul Stevens, William Rehnquist, Warren Burger, Harry Blackmun, William Brennan, US Supreme Court, Potter Stewart, Thurgood Marshall

Timeline Tags: Civil Liberties

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 image of Willie Horton as shown in the ‘Weekend Pass’ campaign ad.The image of Willie Horton as shown in the ‘Weekend Pass’ campaign ad. [Source: University of Virginia]A political advertisement on behalf of the George H. W. Bush presidential campaign appears, running on televisions around the country between September 21 and October 4, 1988. Called “Weekend Pass,” it depicts convicted murderer William “Willie” Horton, who was granted 10 separate furloughs from prison, and used the time from his last furlough to kidnap and rape a young woman. The advertisement and subsequent media barrage falsely accuses Democratic presidential candidate Michael Dukakis, the governor of Massachusetts, of creating the “furlough program” that led to Horton’s release, and paints Dukakis as “soft on crime.” It will come to be known as one of the most overly racist political advertisements in the history of modern US presidential politics.
Ad Content - The ad begins by comparing the positions of the two candidates on crime. It notes that Bush supports the death penalty for convicted murderers, whereas Dukakis does not. The ad’s voiceover narrator then states, “Dukakis not only opposes the death penalty, he allowed first-degree murderers to have weekend passes from prison,” with the accompanying text “Opposes Death Penalty, Allowed Murderers to Have Weekend Passes” superimposed on a photograph of Dukakis. The narrator then says, “One was Willie Horton, who murdered a boy in a robbery, stabbing him 19 times,” accompanied by a mug shot of Horton. The voiceover continues: “Despite a life sentence, Horton received 10 weekend passes from prison. Horton fled, kidnapped a young couple, stabbing the man and repeatedly raping his girlfriend.” At this point, the ad shows another picture of Horton being arrested while the accompanying text reads, “Kidnapping, Stabbing, Raping.” The ad’s narration concludes: “Weekend prison passes. Dukakis on crime.” The ad is credited to the “National Security Political Action Committee.” [Inside Politics (.org), 1999; Museum of the Moving Image, 2008; University of Virginia, Introduction to American Politics, 11/18/2009]
'Soft on Crime' - The ad is a reflection of the measures the Bush campaign is willing to undertake to defeat the apparently strong Dukakis candidacy. Dukakis is a popular Democratic governor and widely credited with what pundits call the “Massachusetts Miracle,” reversing the downward economic spiral in his state without resorting to hefty tax increases. At the time of the ad, Dukakis enjoys a 17-point lead over Bush in the polls. Bush campaign strategists, led by campaign manager Lee Atwater, have learned from focus groups that conservative Democratic voters, which some call “Reagan Democrats,” are not solid in their support of Dukakis, and are swayed by reports that he vetoed legislation requiring teachers to say the Pledge of Allegiance at the beginning of the school day. They also react negatively when they learn that during Dukakis’s tenure as governor, Horton had been furloughed and subsequently raped a white woman. Atwater and the Bush campaign decide that Dukakis can successfully be attacked as a “liberal” who is “not patriotic” and is “soft on crime.” Atwater, who has a strong record of appealing to racism in key voting groups (see 1981), tells Republican Party officials, “By the time this election is over, Willie Horton will be a household name.” Although Dukakis had vetoed a bill mandating the death penalty for first-degree murder in Massachusetts, he did not institute the furlough program; that was signed into law by Republican governor Francis Sargent in 1972. The ads and the accompanying media blitz successfully avoid telling voters that Sargent, not Dukakis, instituted the furlough program. [Regardie's Magazine, 10/1/1990; Inside Politics (.org), 1999]
Running the Horton Ad - The ad is sponsored by an ostensibly “independent” political organization, the conservative National Security Political Action Committee (NSPAC), headed by former Chairman of the Joint Chief of Staff Thomas Moorer. NSPAC’s daughter organization “Americans for Bush” actually put together the ad, created by marketer Larry McCarthy in close conjunction with Atwater and other Bush campaign aides; Atwater determined months before that the Horton ad should not come directly from the Bush campaign, but from an “independent” group supporting Bush, thus giving the Bush campaign the opportunity to distance itself from the ad, and even criticize it, should voters react negatively towards its message (see June-September 1988). The first version of the ad does not use the menacing mug shot of Horton, which McCarthy later says depicts “every suburban mother’s greatest fear.” McCarthy and Atwater feared that the networks would refuse to run the ad if it appeared controversial. However, the network censors do not object, so McCarthy quickly substitutes a second version of the ad featuring the mug shot. When Democrats and progressive critics of the Bush campaign complain that Bush is running a racist ad, Bush media adviser Roger Ailes says that neither he nor the campaign have any control over what outside groups like “Americans for Bush” put on the airwaves. InsidePolitics will later write, “This gave the Bush camp plausible deniability that helped its candidate avoid public condemnation for racist campaigning.”
Accompanying Newspaper Reports, Bush Campaign Ads - The ad airs for the first time on September 21. On September 22, newspapers around the nation begin publishing articles telling the story of Angie and Clifford Barnes, victimized by Horton while on furlouogh. On October 5, the Bush campaign releases a “sister” television ad, called “Revolving Door.” Scripted by Ailes, the commercial does not mention Horton nor does it show the now-infamous mug shot, but emphasizes the contention that Dukakis is “soft on crime” and has what it calls a “lenient” furlough policy for violent convicts. The central image of the ad is a stream of African-American inmates moving slowly in and out of a revolving gate. The voiceover says that Dukakis had vetoed the death penalty and given furloughs to “first-degree murderers not eligible for parole. While out, many committed other crimes like kidnapping and rape.” At the same time, Clifford Barnes and the sister of the youth murdered by Horton embark on a nationwide speaking tour funded by a pro-Bush independent group known as the Committee for the Presidency. Barnes also appears on a number of television talk shows, including those hosted by Oprah Winfrey and Geraldo Rivera. Barnes and the victim’s sister also appear in two “victim” ads, where Barnes says: “Mike Dukakis and Willie Horton changed our lives forever.… We are worried people don’t know enough about Mike Dukakis.” In 1999, InsidePolitics will write that the media gives the “Revolving Door” ad a “courteous reception,” and focuses more on the two ads’ impact on the election, and the Dukakis campaign’s lack of response, instead of discussing the issues of race and crime as portrayed by the ads. It is not until October 24, less than two weeks before the election, that anyone in the mainstream media airs footage of critics questioning whether the ads are racially inflammatory, but these appearances are few and far between, and are always balanced with appearances by Bush supporters praising the campaign’s media strategy. [Inside Politics (.org), 1999; Inside Politics (.org), 1999; University of Virginia, Introduction to American Politics, 11/18/2009]
Denials - Bush and his vice presidential candidate Dan Quayle will deny that the ads are racist, and will accuse Democrats of trying to use racism to stir up controversy (see October 1988).
Failure to Respond - The Dukakis campaign will make what many political observers later characterize as a major political blunder: it refuses to answer the ads or dispute their content until almost the last days of the campaign, hoping that viewers would instead conclude that the ads are unfair without the Dukakis campaign’s involvement. The ads will be hugely successful in securing the election for Bush (see September-November 1988). [Museum of the Moving Image, 2008]

Entity Tags: Angie Barnes, Clifford Barnes, Committee for the Presidency, Dan Quayle, George Herbert Walker Bush, Americans for Bush, InsidePolitics (.org), Francis Sargent, Michael Dukakis, William (“Willie”) Horton, Lee Atwater, National Security Political Action Committee, Thomas Moorer, Roger Ailes, Larry McCarthy

Timeline Tags: Domestic Propaganda, Elections Before 2000

The Supreme Court, in the case of Austin v. Michigan Chamber of Commerce, rules that the Michigan Chamber of Commerce (MCC) cannot run newspaper advertisements in support of a candidate for the state legislature because the MCC is subject to the Michigan Campaign Finance Act, which prohibits corporations from using treasury money to support or oppose candidates running for state offices. The Court finds that corporations can use money only from funds specifically designated for political purposes. The MCC holds a political fund separate from its other monies, but wanted to use money from its general fund to buy political advertising, and sued for the right to do so. The case explored whether a Michigan law prohibiting such political expenditures is constitutional. The Court agrees 7-2 that it is constitutional. Justices Antonin Scalia and Anthony Kennedy dissent, arguing that the government should not require such “segregated” funds, but should allow corporations and other such entities to spend their money on political activities without such restraints. [Public Resource (.org), 1990; Casebriefs, 2012; Moneyocracy, 2/2012] The 2010 Citizens United ruling (see January 21, 2010) will overturn this decision, with Scalia and Kennedy voting in the majority, and Kennedy writing the majority opinion.

Entity Tags: Michigan Chamber of Commerce, Anthony Kennedy, Michigan Campaign Finance Act, US Supreme Court, Antonin Scalia

Timeline Tags: Civil Liberties

President Bush vetoes the Campaign Finance Reform Act of 1992, which would have provided partial public financing for Congressional candidates who voluntarily accept fundraising restrictions. The legislation would have also put restrictions on so-called “soft money” raised on behalf of presidential candidates. The bill is sponsored by Congressional Democrats, and if signed into law, would have provided public funds and other incentives for Senate and House candidates who agreed to limit election spending. Bush says in his veto message that the bill would allow “a corrupting influence of special interests” in campaign financing and give an unfair advantage to Congressional incumbents, the majority of whom are Democrats. The bill is little more than “a taxpayer-financed incumbent protection plan,” Bush says. Democrats retort that the bill would lessen, not increase, campaign finance corruption by providing public funds instead of private (largely corporate) donations, and note that Bush netted $9 million in corporate and individual donations in a single evening during a so-called “President’s Dinner” fundraising event. Democratic leaders have acknowledged that if Bush indeed vetoes the bill, they lack the numbers in the Senate to override the veto; some believe that Democrats will try to use the veto in the 1994 and perhaps 1996 election campaigns. House and Senate candidates are breaking fundraising records, raising almost 29 percent more money this cycle than in a corresponding cycle two years ago. Much of those funds come from political action committees (PACs—see 1944, February 7, 1972, and November 28, 1984). In 1989, Bush said he would like to abolish PACs entirely, and he now says, “If the Congress is serious about enacting campaign finance reform, it should pass legislation along the lines I proposed in 1989, and I would sign it immediately.” The Democratic bill would curtail the influence of PACs, but not ban them outright. [Los Angeles Times, 5/10/1992; Reuters, 5/11/1992; Campaign Finance Timeline, 1999; Connecticut Network, 2006 pdf file] Fred Wertheimer of Common Cause, which had pressured for passage of the bill, called the legislation “the most important government reform legislation in about 20 years.” He added, “If President Bush vetoes the reform legislation, the corrupt campaign finance system in Washington will be his system, his personal responsibility.” [New York Times, 4/3/1992] In an angry editorial in the Orlando Sun-Sentinel, Tom Kelly will blast Bush and the members of both parties whom he will say “are as comfortable with the present arrangement as fat cats reclining on a plush sofa.” Kelly will write that Bush’s characterization of the bill as “incumbent protection” is insulting and inaccurate. The result of the veto, he will write, is that Bush himself becomes the incumbent most protected by the current system, and “the prospects for meaningful change in a disgraceful system by which special interests manipulate public policy with the leverage of big bucks have been set back to Square One—again.” Kelly will note that at the recent “President’s Dinner” that raised $9 million in contributions, the costs were plainly delineated: ”$1,500 per plate for dinner, $15,000 to sit with a congressman, $30,000 for a senator or Cabinet member, $92,000 for a photograph with the president, and $400,000 to share head-table chitchat with Bush himself.” Presidential spokesman Marlin Fitzwater admits that the contributors were buying “access” to the administration, access, Kelly will write, is “all too often is denied to the people who need government services most and those who have to pay the bills.” All of the $9 million raised at the dinner, and the monies raised at other such events, becomes so-called “soft money,” which Kelly will note has been labeled “sewer money” by the New York Times. While the law pretends that such monies go for voter turnout and education efforts, Kelly will write, it usually goes into buying negative television ads financed by third-party political organizations. Kelly will call Bush’s call to eliminate PACs “fraudulent,” writing, “The same power brokers could simply reorganize as ‘ideological’ lobbies and resume bribery as usual.” [Orlando Sun-Sentinel, 5/15/1992]

Entity Tags: Bush administration (41), Campaign Finance Reform Act of 1992, Fred Wertheimer, George Herbert Walker Bush, Tom Kelly (Volusia County), Marlin Fitzwater, US Congress

Timeline Tags: Civil Liberties

Congressional Republicans block several pieces of legislation from reaching a vote. The bills would have set campaign spending limits and authorized partial public financing of Congressional elections. Two years ago, President Bush vetoed a bill that would have reformed Congressional election financing (see May 11, 1992). [Connecticut Network, 2006 pdf file]

Entity Tags: US Congress

Timeline Tags: Civil Liberties

Republicans in the US Senate successfully filibuster bipartisan legislation that would have set voluntary campaign spending limits and restrictions on so-called “soft money” donations. Two years ago, Congressional Republicans blocked similar campaign finance reform efforts (see 1994). [Connecticut Network, 2006 pdf file]

Entity Tags: US Senate

Timeline Tags: Civil Liberties

The Supreme Court rules in the case of Colorado Republican Federal Campaign Committee v. Federal Election Committee. The case originated with advertisements run by the Colorado Republican Party (CRP) in 1986 attacking the Colorado Democratic Party’s likely US Senate candidate. Neither party had yet selected its candidate for that position. The Federal Election Commission (FEC) sued the CRP’s Federal Campaign Committee, saying that its actions violated the “party expenditure provision” of the Federal Election Campaign Act (FECA—see February 7, 1972, 1974, and May 11, 1976) by spending more than the law allows. The CRP in turn claimed that FECA violated its freedom of speech, and filed a counterclaim. A Colorado court ruled in favor of the CRP, dismissing the counterclaim as moot, but an appeals court overturned the lower court’s decision. The Supreme Court rules 7-2 in favor of the FEC. The decision is unusual, lacking a clear majority, but being comprised of a “plurality” of concurrences. The majority opinion, such as it is, is authored by Justice Stephen Breyer, one of the Court liberals, and is joined by fellow liberal David Souter and conservative Sandra Day O’Connor. Conservatives Anthony Kennedy, William Rehnquist, and Antonin Scalia go farther than Breyer’s majority decision, writing that the provision violates the First Amendment when it restricts as a “contribution” a political party’s spending “in cooperation, consultation, or concert, with a candidate.” In yet another concurrence, conservative Clarence Thomas argues that the entire provision is flatly unconstitutional. Liberals John Paul Stevens and Ruth Bader Ginsburg dissent, agreeing with the appeals court. [Oyez (.org), 2011; Moneyocracy, 2/2012] In 2001, the Court will revisit the case and find its initial ruling generally sound, though the later decision will find that some spending restrictions are constitutional. In the revisiting, four of the Court’s five conservatives will dissent, with the liberals joined by O’Connor. [Oyez (.org), 2011; Moneyocracy, 2/2012]

Entity Tags: Colorado Republican Party, Colorado Democratic Party, Antonin Scalia, Anthony Kennedy, US Supreme Court, Stephen Breyer, William Rehnquist, Clarence Thomas, Federal Election Campaign Act of 1972, David Souter, Colorado Republican Party Federal Campaign Committee, Sandra Day O’Connor, Ruth Bader Ginsburg, Federal Election Commission, John Paul Stevens

Timeline Tags: Civil Liberties

David Bossie.David Bossie. [Source: C-SPAN]David Bossie, an investigator for Representative Dan Burton (R-IN), is fired from his position. Bossie recently leaked transcripts of prison conversations featuring former Clinton administration official Webster Hubbell, who will be convicted of defrauding clients and sentenced to prison in 2004. Bossie fraudulently edited the transcripts to have Hubbell imply that First Lady Hillary Clinton broke the law while the two worked together in an Arkansas law firm. Bossie cut out portions of Hubbell’s conversations exonerating her from any wrongdoing, and sometimes rewrote Hubbell’s words entirely. In response to the controversy, House Speaker Newt Gingrich (R-GA) says of Burton and the House Committee on Oversight and Government Reform, “I’m embarrassed for you, I’m embarrassed for myself, and I’m embarrassed for the [House Republican] conference at the circus that went on at your committee.” (In late April, Burton had called President Clinton a “scumbag,” further embarrassing Gingrich and the Republican leadership.) Bossie came to Burton’s staff from Citizens United (CU), which he joined in 1994 and soon rose to become director of government relations and communications. In 1988, as a member of Floyd Brown’s Presidential Victory Committee (PVC), Bossie helped produce the infamous Willie Horton ad (see September 21 - October 4, 1988). In 1992, as executive director of the PVC, Bossie oversaw the release of a fundraising letter accusing then-presidential candidate Bill Clinton of having an affair with an Arkansas woman, for use in an ad that falsely suggested it was the product of President Bush’s re-election campaign. Then-President Bush accused the PVC of engaging in “filthy campaign tactics,” and his son and campaign aide George W. Bush sent a letter asking donors not to give to the organization. Bossie has encouraged Burton to open an investigation into the suicide of Clinton administration aide Vince Foster (alleging that Foster was murdered as part of some unspecified White House plot, or perhaps an Israeli intelligence “black op”). While an aide to Senator Lauch Faircloth (R-NC), Bossie was found to have tried to intimidate a federal judge during a Whitewater-related investigation. Bossie has earned a reputation as a “Whitewater stalker,” combing Arkansas for “evidence” of crimes by the Clintons, and repeatedly making false and lurid allegations against the president and/or his wife. For a year, Bossie has promised that Burton’s committee would soon produce evidence of Chinese espionage and White House collusion, but any evidence of such a scandal has never been produced. A former lawyer for the Oversight Committee, John Rowley, has called Bossie’s actions “unrelenting self-promoti[on]” and challenged Bossie’s competence. Bossie says his transcripts were accurate (though the tapes of Hubbell’s conversations prove he is wrong), and blames committee Democrats for the controversy. [WorldNetDaily, 5/7/1998; Salon, 5/7/1998; Media Matters, 5/11/2004] WorldNetDaily reporter David Bresnahan writes that according to his sources, Bossie “was either extremely incompetent or was intentionally trying to sabotage” Burton’s investigations into the Clinton administration. Bresnahan also says that Burton allowed Bossie to resign instead of firing him, as other media sources report. [WorldNetDaily, 5/7/1998]

Entity Tags: Floyd Brown, David Bresnahan, Dan Burton, Clinton administration, Citizens United, William Jefferson (“Bill”) Clinton, Webster Hubbell, Presidential Victory Committee, David Bossie, House Committee on Oversight and Government Reform, John Rowley, Hillary Clinton, Newt Gingrich, George W. Bush, Vince Foster

Timeline Tags: Civil Liberties

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 New York Times publishes an unsigned editorial criticizing the recent use of campaign ads by the George W. Bush presidential campaign against Bush’s Republican rival, John McCain. “[T]he tactics being employed by supporters of George W. Bush against Senator John McCain should be of serious concern to every New Yorker in regard to the integrity of politics in this state and in regard to the nation’s inadequate campaign-finance laws,” the editorial states. It refers to a recent spate of “purportedly independent television ads” aired in New York and elsewhere by a group called “Republicans for Clean Air” (see March 2000 and After). Those ads were paid for by Texas billionaire Sam Wyly, a close political friend and donor of the Bush family. The Times does not believe the Bush campaign’s contention that the airing, and the timing, of the Wyly ads was nothing more than “a happy accident,” and calls for an investigation by the Federal Election Commission (FEC). Moreover, the ad campaign “points up a fundamental flaw in the nation’s election laws,” the Times says. The 1996 presidential campaign was marred by questionable expenditures by groups on behalf of both the Democratic and Republican campaigns. While the Clinton and Dole campaigns both disavowed any knowledge of or coordination with those groups, and the ads left out what the Times calls “the magic words ‘vote for‘… any reasonable viewer” would discern that the ads were promoting the sponsoring group’s candidate. The Times calls the practice a “subterfuge” that threatens “the integrity of future elections.” It concludes, quoting McCain: “[A]llowing wealthy individuals to flood the airwaves with ads promoting their chosen candidates in the final days of a campaign ‘distorts the process’ and gives a small class of wealthy Americans a financial license to sway close elections without being accountable to the public.… [I]n the long run, the country needs full public financing. [New York Times, 3/6/2000]

Entity Tags: John McCain presidential campaign 2000, George W. Bush, George W. Bush presidential campaign 2000, John McCain, Sam Wyly, New York Times, Republicans for Clean Air

Timeline Tags: 2000 Elections, Civil Liberties

The presidential campaign of Senator John McCain (R-AZ) files a formal complaint with the Federal Election Commission (FEC) alleging improper campaign contributions by two of the biggest financial backers of McCain’s rival presidential primary contender, Governor George W. Bush (R-TX). The backers, Texas billionaires Charles and Sam Wyly, spent $2.5 million on television ads airing in New York, Ohio, and California created by a group called “Republicans for Clean Air” (RFCA—see March 2000 and After). McCain’s campaign alleges that the Bush campaign illegally coordinated its efforts with RFCA to air the ads in the days before critical primary elections. Bush has denied any knowledge of the ads, and has said his campaign had no contact with the group. McCain’s complaint notes that Charles Wyly has already contributed the maximum amount allowed by law and holds an official position in the Bush campaign. McCain says at a campaign rally in California, “We ask Governor Bush to do what he refused to do, tell his sleazy Texas buddies to stop these negative ads and take their money back to Texas where it belongs, and don’t try to corrupt American politics with your money.” The McCain campaign also files an emergency complaint with the Federal Communications Commission (FCC), which McCain oversees as chair of the Senate Commerce Committee, asserting that the advertisements violate the Communications Act by failing to properly identify the true sponsor. The FCC declines to intervene. Bush campaign spokesperson Karen Hughes says McCain’s complaints are “irresponsible” and “shameful. He should be ashamed. He has not one shred of evidence. The governor has personally said our campaign did not coordinate, our campaign knew nothing about the ad until a member of the media asked us about the ad, and Senator McCain should be ashamed of tossing around scurrilous accusations like that.” [New York Times, 3/7/2000] The FEC will vote not to investigate the complaint. [Scott E. Thomas and Danny Lee McDonald, 4/2002]

Entity Tags: John McCain presidential campaign 2000, Federal Election Commission, Federal Communications Commission, Charles Wyly, George W. Bush, John McCain, Republicans for Clean Air, George W. Bush presidential campaign 2000, Karen Hughes, Sam Wyly

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

The US Supreme Court issues a ruling in Bush v. Gore (see December 11, 2000) that essentially declares George W. Bush (R-TX) the winner of the Florida presidential election, and thusly the winner of the US presidential election (see Mid-to-Late November 2000). The decision in Bush v. Gore is so complex that the Court orders that it not be used as precedent in future decisions. The 5-4 decision is split along ideological lines, with Justices Sandra Day O’Connor (see After 7:50 p.m. November 7, 2000 and (November 29, 2000)) and Anthony Kennedy, two “moderate conservatives,” casting the deciding votes. In the per curium opinion, the Court finds: “Because it is evident that any recount seeking to meet the Dec. 12 date will be unconstitutional… we reverse the judgment of the Supreme Court of Florida ordering the recount to proceed.… It is obvious that the recount cannot be conducted in compliance with the requirements of equal protection and due process without substantial additional work.” The decision says that the recounts as ordered by the Florida Supreme Court suffer from constitutional problems (see December 7-8, 2000). The opinion states that differing vote-counting standards from county to county and the lack of a single judicial officer to oversee the recount violate the equal-protection clause of the Constitution. The majority opinion effectively precludes Vice President Al Gore from attempting to seek any other recounts on the grounds that a recount could not be completed by December 12, in time to certify a conclusive slate of electors. The Court sends the case back to the Florida Supreme Court “for further proceedings not inconsistent with this opinion.” Four justices issue stinging dissents. Justice John Paul Stevens writes: “One thing… is certain. Although we may never know with complete certainty the identity of the winner of this year’s presidential election, the identity of the loser is perfectly clear. It is the nation’s confidence in the judge as an impartial guardian of the rule of law.” Justice Stephen G. Breyer adds that “in this highly politicized matter, the appearance of a split decision runs the risk of undermining the public’s confidence in the court itself.” [Per Curiam (Bush et al v. Gore et al), 12/12/2000; US News and World Report, 12/13/2000; Pittsburgh Post-Gazette, 12/17/2000; Leip, 2008]
Drafting Opinions - After oral arguments concluded the day before, Chief Justice William Rehnquist said that if they were to remand the case back to Florida, that order must go out immediately in light of the approaching deadline for certification of results; Stevens quickly wrote a one-paragraph opinion remanding the case back to Florida and circulated it, though with no real hope that it would be adopted. The five conservative justices are determined to reverse the Florida decision. For the rest of the evening and well into the next day, December 12, the justices work on their opinions. Stevens prepares the main dissent, with the other three liberal justices preparing their own concurrences. Stevens and Justice Ruth Bader Ginsburg find no support whatsoever for the equal-protection argument, and say so in their writings. Justices Breyer and David Souter give the idea some weight; Souter says that the idea of uniform standards is a good one, but these standards should be created and imposed by the Florida judiciary or legislature. Stopping the recounts solves nothing, he writes. It soon becomes apparent that neither Kennedy nor O’Connor share Rehnquist’s ideas on the jurisdiction of the Florida court, and will not join him in that argument. Kennedy writes the bulk of the majority opinion; as predicted, his opinion focuses primarily on the equal-protection clause of the Constitution. The liberal justices and clerks find Kennedy’s reasoning that stopping the recounts is the only way to ensure equal protection entirely unconvincing. Anthony Scalia circulates a sealed memo complaining about the tone of some of the dissents, asking that the dissenters not call into question the Court’s credibility. (His memo prompts Ginsburg to remove a footnote from her dissent commenting on Florida’s disenfranchised African-American voters; some of the liberal clerks see the incident as Ginsburg being bullied into compliance by Scalia. Subsequent investigations show that thousands of legitimate African-Americans were indeed disenfranchised—see November 7, 2000.) Kennedy sends a memo accusing the dissenters of “trashing the Court,” and says that the dissenters actually agree with his equal-protection argument far more than they want to admit. When he has a line inserted into his opinion reading, “Eight Justices of the Court agree that there are constitutional problems with the recount ordered by the Florida Supreme Court that demand a remedy,” some of Stevens’s clerks angrily telephone Kennedy’s clerks and accuse them of misrepresenting Stevens’s position. They demand that the line be removed. Kennedy refuses, and Stevens rewrites his opinion so that he is no longer associated with the position. Kennedy is forced to rewrite the statement to say that “seven,” not “eight” justices agree with his position. One of Stevens’s clerks, Eduardo Penalver, tells Kennedy clerk Grant Dixton that what Kennedy had done was disgusting and unprofessional. Breyer and his clerks are also unhappy about Kennedy’s assertion, but take no action. The line prompts many in the media to claim, falsely, that the decision is a 7-2 split and not a 5-4. The main document, a short unsigned opinion halting the recounts, is written by Kennedy. Two portions are particularly notable: Kennedy’s assertion that the ruling applies only to Bush, and not to future decisions; and that the Court had only reluctantly accepted the case. “That infuriated us,” one liberal clerk later recalls. “It was typical Kennedy bullsh_t, aggrandizing the power of the Court while ostensibly wringing his hands about it.” Rehnquist, Scalia, and Justice Clarence Thomas join the decision, though Scalia is unimpressed with Kennedy’s writing and reasoning. Reportedly, he later calls it a “piece of sh_t,” though he will deny making the characterization.
Lack of Consensus - The lack of consensus between the conservative justices is relatively minor. Among the four liberal justices, though, it is quite pronounced—though all four wish not to end the recounts, only Stevens has a strong position and has stayed with it throughout the process. Souter, Ginsburg, and Breyer were far less certain of their opposition, and resultingly, their dissents, unlike the impassioned Stevens dissent, are relatively pallid. Some of the liberal clerks say that the four’s lack of consensus helped the solid conservative majority stay solid: “They gave just enough cover to the five justices and their defenders in the press and academia so that it was impossible to rile up the American people about these five conservative ideologues stealing the election.”
Final Loss - Gore, reading the opinion, finally realizes that he and his campaign never had a chance with the five conservative justices, though they had hoped that either O’Connor or Kennedy would join the four liberals (see (November 29, 2000)). He congratulates his legal team, led by David Boies, and commends it for making it so difficult for the Court to justify its decision. Some reports will circulate that Souter is depressed over the decision, with Newsweek reporting that he later tells a group of Russian judges that the decision was “the most outrageous, indefensible thing” the Court had ever done. He also reportedly says that had he had “one more day,” he could have convinced Kennedy to turn. However, Souter will deny the reports, and those who know him will say that such comments would be out of character for him. For her part, O’Connor will express surprise that anyone could be angry over the decision. As for Scalia, some Court observers believe that his open partisanship during the process will cost him any chance he may have had to be named chief justice. [Vanity Fair, 10/2004]

Entity Tags: David Souter, William Rehnquist, David Boies, Anthony Kennedy, Albert Arnold (“Al”) Gore, Jr., Al Gore presidential campaign 2000, US Supreme Court, Stephen Breyer, Ruth Bader Ginsburg, Clarence Thomas, George W. Bush presidential campaign 2000, George W. Bush, Florida Supreme Court, John Paul Stevens, Grant Dixton, Sandra Day O’Connor, Eduardo Penalver

Timeline Tags: 2000 Elections, Civil Liberties

Barbara Olson.Barbara Olson. [Source: Richard Eillis / Getty Images]Barbara Olson, a passenger on Flight 77, talks over the phone with her husband, Ted Olson, the solicitor general of the United States, and gives details of the hijacking of her plane, but the call is cut off after about a minute. [9/11 Commission, 5/20/2004; 9/11 Commission, 8/26/2004, pp. 32] Flight 77 was hijacked between around 8:51 a.m. and 8:54 a.m., according to the 9/11 Commission Report (see 8:51 a.m.-8:54 a.m. September 11, 2001). [9/11 Commission, 7/24/2004, pp. 8] Sometime later, Barbara Olson tries calling her husband from the plane. The call initially reaches Mercy Lorenzo, an operator for AT&T, and after a short conversation, Lorenzo connects her to Ted Olson’s office at the Department of Justice in Washington, DC (see (Between 9:15 a.m. and 9:25 a.m.) September 11, 2001). [Federal Bureau of Investigation, 9/11/2001; Federal Bureau of Investigation, 9/11/2001]
Secretary Answers the Call - There, the call is answered by Lori Keyton, a secretary. Lorenzo says there is an emergency collect call from Barbara Olson for Ted Olson. Keyton says she will accept it. Barbara Olson is then put through. She starts asking, “Can you tell Ted…” but Keyton cuts her off and says, “I’ll put him on the line.” [Federal Bureau of Investigation, 9/11/2001] Keyton then notifies Helen Voss, Ted Olson’s special assistant, about the call. She says Barbara Olson is on the line and in a panic. The call is then passed on to Ted Olson. [Federal Bureau of Investigation, 9/11/2001] Voss rushes up to him and says, “Barbara is on the phone.” Ted Olson has been watching the coverage of the crashes at the World Trade Center on television and was concerned that his wife might have been on one of the planes involved. He is therefore initially relieved at this news. However, when he gets on the phone with her, he learns about the crisis on Flight 77. [CNN, 9/14/2001; Newsweek, 9/28/2001; Hudson Union, 6/18/2014]
Barbara Olson Provides Details of the Hijacking - Barbara Olson tells her husband that her plane has been hijacked. She gives no information describing the hijackers. She says they were armed with knives and box cutters, but makes no mention of any of the crew members or passengers being stabbed or slashed by them. She says they moved all the passengers to the back of the plane and are unaware that she is making a phone call. After the couple have been talking for about a minute, the call is cut off. Ted Olson will then try to call Attorney General John Ashcroft on a direct line he has to Ashcroft but receive no answer. After that, he will call the Department of Justice command center and ask for someone there to come to his office (see (Between 9:17 a.m. and 9:29 a.m.) September 11, 2001). Barbara Olson will reach her husband again and provide more details about the hijacking a short time later (see (Between 9:20 a.m. and 9:30 a.m.) September 11, 2001). [Federal Bureau of Investigation, 9/11/2001; Newsweek, 9/28/2001; 9/11 Commission, 7/24/2004, pp. 9; 9/11 Commission, 8/26/2004, pp. 32]
Barbara Olson Is 'Incredibly Calm' - Accounts will later conflict over how composed Barbara Olson sounds during the call. She “did not seem panicked,” according to Ted Olson. [Federal Bureau of Investigation, 9/11/2001] “She sounded very, very calm… in retrospect, enormously, remarkably, incredibly calm,” he will say. [CNN, 9/14/2001] But Keyton will say that when she answered the call, Barbara Olson “sounded hysterical.” [Federal Bureau of Investigation, 9/11/2001] Ted Olson will add that he did not hear any noises on the plane other than his wife’s voice. [CNN, 9/14/2001]
Accounts Will Conflict over What Kind of Phone Is Used - Accounts will also be contradictory over whether Barbara Olson’s call is made using a cell phone or an Airfone. Keyton will say there is no caller identification feature on her phone and so she was unable to determine what kind of phone Barbara Olson used. [Federal Bureau of Investigation, 9/11/2001] Ted Olson will tell the FBI that he “doesn’t know if the calls [from his wife] were made from her cell phone or [an Airfone].” He will mention, though, that she “always has her cell phone with her.” [Federal Bureau of Investigation, 9/11/2001] He will similarly tell Fox News that he is unsure whether his wife used her cell phone or an Airfone. He will say he initially assumed the call must have been made on an Airfone and she called collect because “she somehow didn’t have access to her credit cards.” [Fox News, 9/14/2001] But he will tell CNN that she “called him twice on a cell phone.” [CNN, 9/12/2001] And in a public appearance in 2014, he will imply that she called him on her cell phone, saying, “I don’t know how Barbara managed to make her cell phone work” while she was in the air. [Hudson Union, 6/18/2014] Furthermore, a spokesman for Ted Olson will say that during the call, Barbara Olson said she was locked in the toilet. If correct, this would mean she must be using her cell phone. [Daily Mail, 9/12/2001; Evening Standard, 9/12/2001] But in 2002, Ted Olson will tell the London Telegraph that his wife called him on an Airfone and add, “I guess she didn’t have her purse, because she was calling collect.” [Daily Telegraph, 3/5/2002] And based on a study of all Airfone records, an examination of the cell phone records of all of the passengers who owned cell phones, and interviews with the people who received calls from the plane, the Department of Justice will determine that all of the calls from Flight 77 were made using Airfones.
Call Will Be Listed as Being Made to an 'Unknown' Number - A list compiled by the Department of Justice supposedly showing all of the calls made today from Flight 77 will include four “connected calls to unknown numbers” (see 9:15 a.m.-9:30 a.m. September 11, 2001). The 9/11 Commission Report will determine that these include the two calls made by Barbara Olson to her husband. According to the information in the list, her first call must occur at 9:15 a.m., 9:20 a.m., or 9:25 a.m. However, the FBI and the Department of Justice will conclude that all four “connected calls to unknown numbers” were communications between Barbara Olson and her husband’s office. [9/11 Commission, 5/20/2004; 9/11 Commission, 7/24/2004, pp. 455]
Barbara Olson Originally Planned to Fly Out a Day Earlier - Barbara Olson is a former federal prosecutor who is now a well-known political commentator on television. [Independent, 9/13/2001; New York Times, 9/13/2001] She was flying to Los Angeles to attend a major media business conference and to appear on Bill Maher’s television show, Politically Incorrect, this evening. [CNN, 9/14/2001; Hudson Union, 6/18/2014] She was originally scheduled to be on Flight 77 on September 10, but delayed her departure because today is Ted Olson’s birthday, and she wanted to be with him on the night before and have breakfast with him this morning. [CNN, 9/12/2001; Scotsman, 9/13/2001; Hudson Union, 6/18/2014] At around 9:00 a.m., Keyton received a series of about six to eight collect calls from an unknown caller that failed to go through (see (9:00 a.m.) September 11, 2001). Presumably these were made by Barbara Olson. [Federal Bureau of Investigation, 9/11/2001; 9/11 Commission, 8/26/2004, pp. 94] In an interview with the FBI on September 13, Ted Olson will mention some messages on his voicemail at his old law firm. Presumably, he will be suggesting that these were also from Barbara Olson (see (Between 8:55 a.m. and 9:36 a.m.) September 11, 2001). [Federal Bureau of Investigation, 9/13/2001]

Entity Tags: Barbara Olson, Helen Voss, Mercy Lorenzo, Lori Lynn Keyton, Theodore (“Ted”) Olson

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

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

In the case of Federal Election Commission v. Beaumont, the Supreme Court rules that the ban on direct corporate donations by the Federal Election Campaign Act (FECA—see February 7, 1972) is constitutional. The case concerns a challenge to the law by Christine Beaumont and North Carolina Right to Life (NCRL), an anti-abortion advocacy group that sued for the right to donate directly to political candidates under the First Amendment. Beaumont and the NCRL were twice denied in lower courts, and have appealed to the Supreme Court. In a 7-2 decision, the Court upholds the ban. The majority opinion is written by Justice David Souter, who rules that the ban on direct contributions is consistent with the First Amendment. The Court cannot find in favor of NCRL, Souter writes, “without recasting our understanding of the risks of harm posed by corporate political contributions, of the expressive significance of contributions, and of the consequent deference owed to legislative judgments on what to do about them.” Two of the most conservative justices on the Court, Antonin Scalia and Clarence Thomas, dissent, arguing that the ban is not constitutional. [Brennan Center for Justice, 6/16/2003; Oyez (.org), 2009]

Entity Tags: David Souter, Antonin Scalia, Christine Beaumont, Federal Election Campaign Act of 1972, Clarence Thomas, US Supreme Court, North Carolina Right to Life

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

David Bossie (see May 1998), the head of the conservative lobbying group Citizens United (CU), accuses liberal filmmaker Michael Moore of improper involvement in the presidential campaign of Senator John Kerry (D-MA). Moore and the production company Lions Gate have released a new documentary, Fahrenheit 9/11, that is highly critical of the Bush administration (see June 25, 2004). Bossie says the film’s commercials, airing on network and cable television, are little more than campaign commercials devised to attack President Bush and assist Kerry. One commercial shows Bush on the golf course, talking about terrorism. In the clip, Bush tells a group of reporters, “We must stop these terrorist killers,” then turns his back, hefts his golf club, and says, “Now watch this drive.” The New York Times writes that “[t]he scene is one of many featured in the film that paint the president as cavalier, cynical, and insincere in the war against terrorism.” Republicans have for the most part ignored the film until recently, when ads for the film began drawing what they consider unwarranted attention. Bossie says: “There’s only a very small percentage of Americans that are going to go and see this movie. A much larger number are going to be bombarded by these political ads run by Michael Moore, potentially all the way through the election.” CU has run ads supportive of Bush (see (May 11, 2004)). Bossie has filed a complaint with the Federal Election Commission (FEC) asking that agency to classify the film’s ads as political, and restrict their broadcast according to campaign finance law (see March 27, 2002 and December 10, 2003). The law says that if found to be political, the ads must not be aired within 30 days of the start of the Republican National Convention on August 30. Legal experts say the FEC is unlikely to rule on the complaint for months, and even if the agency finds the ads to be political, the film could qualify for an exemption from the restrictions for news and commentary. Tom Ortenberg of Lions Gate says, “If we are still running television ads [by July 30], we will make certain that they are in full compliance with any and all regulations.” If they must remove Bush from the ads to remain in compliance, Ortenberg says “we can market this film without him.” Ortenberg denies that the ads have any political agenda. [New York Times, 6/27/2004] After Lions Gate agrees not to show ads for the film after July 30, the FEC will dismiss the complaint (see August 6, 2004).

Entity Tags: Lions Gate, David Bossie, Citizens United, Federal Election Commission, John Kerry, New York Times, George W. Bush, Tom Ortenberg, Michael Moore

Timeline Tags: Civil Liberties, 2004 Elections

Wisconsin Right to Life logo.Wisconsin Right to Life logo. [Source: Dane101 (.com)]After the passage of the Bipartisan Campaign Reform Act of 2002 (BCRA—see March 27, 2002), also known as the McCain-Feingold law after its original sponsors, and the 2003 McConnell Supreme Court decision that upheld the law (see December 10, 2003), corporations and labor unions are prohibited from airing ads that attack candidates but avoid specific language that turns the ads from general commercials into “campaign” ads within 30 days of a primary election or 60 days of a federal election. Wisconsin Right to Life (WRTL) comes to anti-abortion and anti-campaign finance lawyer James Bopp Jr. (see November 1980 and After) with a dilemma. The WRTL wants to run ads attacking Senator Russ Feingold (D-WI), a powerful advocate of abortion rights, for his record of opposing President Bush’s judicial nominees. It intends to use the ads as campaign attack ads against Feingold, but skirt the BCRA’s restrictions by not specifically discouraging votes for him, thereby giving the appearance of “issue” ads and thusly not running afoul of the BCRA. Bopp is worried that the McConnell decision, just rendered, would make the Court reluctant to reverse itself so quickly. Bopp knows that the McConnell decision was in response to a broad challenge to the BCRA that argued the law was unconstitutional in all circumstances. Bopp decides to challenge the BCRA on behalf of the WRTL on narrower grounds—to argue that the specific application of the BCRA in this instance would violate the group’s First Amendment rights. He decides not to file a complaint with the Federal Election Commission (FEC) because of that agency’s notoriously slow response time, but instead files a preemptive challenge in court objecting to the BCRA’s ban on “issue advertisements” in the weeks before elections. Bopp is encouraged by the prospects of a court challenge that may wend its way to the Supreme Court, as the “swing” vote in McConnell was Justice Sandra Day O’Connor, who has been succeeded by the more conservative Samuel Alito (see October 31, 2005 - February 1, 2006). [New Yorker, 5/21/2012] Bopp will prove to be correct, as the Supreme Court will find in WRTL’s favor (see June 25, 2007).

Entity Tags: Russell D. Feingold, Federal Election Commission, Bipartisan Campaign Reform Act of 2002, George W. Bush, Samuel Alito, James Bopp, Jr, Wisconsin Right to Life, US Supreme Court, Sandra Day O’Connor

Timeline Tags: Civil Liberties, 2004 Elections

The DVD cover for ‘Celsius 41.11.’The DVD cover for ‘Celsius 41.11.’ [Source: Citizens United]The Federal Election Commission (FEC) refuses to allow the conservative lobbying and advocacy group Citizens United (CU) to advertise on television its upcoming film Celsius 41.11—The Temperature at Which the Brain Begins to Die, a documentary that the group intends as a refutation of the documentary Fahrenheit 9/11 (see June 25, 2004), a film by liberal documentarian Michael Moore that savaged the Bush administration’s handling of the 9/11 attacks. The FEC also refuses to allow CU to pay to run the film on television. The FEC bases its decision on the Bipartisan Campaign Reform Act of 2002 (McCain-Feingold—see March 27, 2002), and its restrictions on nonprofit groups such as CU using unregulated contributions to pay for “electioneering communications” to be shown within 60 days of a federal general election. CU would broadcast the film in late September, less than 60 days before the November 2 elections. CU argued, unsuccessfully, that it is a member of the news media and therefore can use a legal exemption provided for news, commentary, and editorial content. In a 4-0 vote, the FEC rejects the argument, saying that CU intends to buy air time instead of being paid to provide content, and that its primary function is as an advocacy group and not a film production organization. FEC vice chair Ellen L. Weintraub, one of the commission’s three Democrats, says: “You don’t want a situation where people are airing campaign commercials and they are exempt from commission rules because they are considered a media event. The danger is that the exemption swallows the rules.” CU president David Bossie (see May 1998) says he is “clearly disappointed” with the ruling, and adds, “They [the FEC] want to limit free speech, and that’s what this issue is about for us.” The company marketing Fahrenheit 9/11 was not allowed to run advertisements promoting the film within 60 days of the elections, and a CU complaint against that film was dismissed after its distributors promised not to air such advertisements (see August 6, 2004). CU has helped fund the publication of a book by Bossie attacking Democratic presidential candidate John Kerry (D-MA), and has released numerous documentaries attacking the Clinton administration and the United Nations. The current film contains some material attacking Kerry, though that material is not the primary focus of the film. Bossie says the group will attempt to show the film in theaters to paying audiences within a few weeks (see September 27-30, 2004). [New York Times, 9/9/2004; New York Times, 9/30/2004]

Entity Tags: Federal Election Commission, Bush administration (43), Bipartisan Campaign Reform Act of 2002, Citizens United, Clinton administration, John Kerry, Michael Moore, David Bossie, United Nations, Ellen L. Weintraub

Timeline Tags: Civil Liberties, Domestic Propaganda, 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

Martin Peretz, the editor in chief of The New Republic, falsely accuses Jewish billionaire George Soros of being a Nazi collaborator. Soros is now a target of conservative opprobrium for his financial support of Democratic and progressive causes. As a 14-year-old boy, Soros escaped from the Nazis by hiding with a non-Jewish family in Hungary; the father of that family sometimes served deportation notices to Hungarian Jews. Peretz now calls Soros “a young cog in the Hitlerite wheel.” The progressive media watchdog Web site Media Matters notes that Peretz is following the lead of right-wing extremists David Horowitz and Richard Poe, whose book The Shadow Party: How George Soros, Hillary Clinton, and Sixties Radicals Seized Control of the Democratic Party claimed that Soros “survived [the Holocaust] by assimilating to Nazism.” The book was found to be riddled with doctored quotes and factual errors (see August 8, 2006). Peretz uses a transcript of a 1998 interview Soros gave to 60 Minutes reporter Steve Kroft to prove his claim, but edits the transcript to leave out a key section that shows Soros did not collaborate with Nazis. [Media Matters, 2/5/2007; New Republic, 2/12/2007] (The article is dated February 12, 2007, but was posted on the New Republic Web site a week earlier.)

Entity Tags: Richard Poe, David Horowitz, George Soros, Media Matters, Steve Kroft, Martin Peretz

Timeline Tags: Domestic Propaganda

The Supreme Court, ruling in the Wisconsin Right to Life v. Federal Election Commission case, finds that some political advertisements can be exempted from the “electioneering communications” provision of the McCain-Feingold campaign reform act (see March 27, 2002). The case stems from attempts by an anti-abortion advocacy group, Wisconsin Right to Life (WRTL), to run ads asking viewers to contact their senators and urge them to oppose filibusters of judicial nominees. WRTL tried to run its ads during the 30 and 60-day “blackout” periods before the upcoming 2004 elections, but because it accepted corporate contributions and was itself incorporated, the McCain-Feingold restrictions prevented the ads from running. WRTL argued that the ads were not targeting candidates, but were strictly issue-related (see Mid-2004 and After). The case was initially dismissed, but the Supreme Court reversed that decision and remanded the case back to the lower courts. The Federal Election Commission (FEC) argued that the ads were intended to influence US Senate elections in Wisconsin, and thusly should be regulated by McCain-Feingold. A district court disagreed, ruling against the FEC and finding that the ads were “protected speech” (see January 30, 1976), though it limited its findings solely to the WRTL ads and specified that its ruling was not to apply to other cases. The FEC appealed the case to the US Supreme Court, which in a 5-4 decision finds that the district court’s ruling is valid. Chief Justice John Roberts writes the majority opinion, which establishes broad exemptions for advertisements that could be “reasonably” interpreted as being about legislative issues and not directed on behalf of, or against, a particular candidate. As long as “issue ads” do not contain the “functional equivalent” of express advocacy for or against a candidate, the Roberts opinion holds, and the advertisements are legal. The ads involve “core political speech” that is protected by the First Amendment, Roberts finds: “We give the benefit of the doubt to speech, not censorship.” Justice David Souter writes the dissenting opinion. Justices Antonin Scalia and Clarence Thomas write a concurring opinion that joins them with Roberts and the other two conservative justices, but in their concurrence, they say they would overturn the McCain-Feingold law in its entirety. [Connecticut Network, 2006 pdf file; Los Angeles Times, 6/26/2007; FindLaw, 2011; National Public Radio, 2012; Oyez (.org), 7/1/2012] Roberts is careful in the language of his majority opinion, writing that “the First Amendment requires us to err on the side of protecting political speech rather than suppressing it.” He does not directly advocate for the overturning of the McCain-Feingold law, but referring to the 2003 McConnell decision that upheld the law (see December 10, 2003), he writes, “We have no occasion to revisit that determination today.” In 2012, reporter Jeffrey Toobin will write of Roberts’s use of the word “today,” “To those who know the language of the Court, the Chief Justice was all but announcing that five justices would soon declare the McCain-Feingold law unconstitutional.” [New Yorker, 5/21/2012] Toobin is referring to the 2010 Citizens United decision that will overturn most of the law (see January 21, 2010).

Entity Tags: John G. Roberts, Jr, Clarence Thomas, David Souter, Antonin Scalia, Federal Election Commission, Wisconsin Right to Life, US Supreme Court, Jeffrey Toobin

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

A three-judge panel rules that the conservative advocacy group Citizens United (CU) must agree to reveal the identities of the donors that made its documentary on presidential candidate Hillary Clinton possible, if it intends to advertise the film. The film, entitled Hillary: The Movie, is considered by the Federal Election Commission (FEC) to be “electioneering,” or the communication of partisan political views, as opposed to a more objective documentary as CU claims. CU challenged the FEC in court in a December 2007 filing, claiming that “issue-oriented television ads are protected by the First Amendment and should not be subject to disclosure requirements under McCain-Feingold campaign finance law,” referring to the Bipartisan Campaign Reform Act of 2002 (BCRA—see March 27, 2002). Under the BCRA, partisan political communications such as the CU film are subject to blackout periods in a specific period before elections. The Supreme Court ruled that so-called “issue ads” can be run by partisan political groups such as CU (see Mid-2004 and After), but the FEC has ruled that such “issue ads” must include disclaimers, and the producers of the ads must file reports that name the ads’ contributors. CU is challenging such disclosure requirements, saying that advertisements for the Clinton film are commercial in nature and not political, and therefore protected under the First Amendment from being forced to disclose donor information. The court rules otherwise. [United States District Court for the District Of Columbia, 1/15/2008 pdf file; Washington Times, 1/16/2008; Media Matters, 1/16/2008]

Entity Tags: Hillary Clinton, Bipartisan Campaign Reform Act of 2002, Citizens United, Federal Election Commission, US Supreme Court

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 Supreme Court finds in the case of Davis v. Federal Election Commission that part of the McCain-Feingold campaign finance reform act (see March 27, 2002) is unconstitutional. Jack Davis (D-NY), a millionaire who has run repeatedly and unsuccessfully as a candidate of both parties to represent New York’s 26th District in the US House of Representatives, has complained in a lawsuit that the so-called “millionaire’s amendment” is unconstitutional. Davis wants to be able to pour his money into the race without his opponents being able to spend more money to counter his donations, as the law enables them to do. The lower courts found against Davis, and under McCain-Feingold the case was expedited directly to the Supreme Court. The Court finds 5-4 in favor of Davis, ruling that the contribution limits unduly restrict Davis’s freedom of speech. Justice Samuel Alito writes the majority opinion, joined by his fellow Court conservatives. Justice John Paul Stevens writes the dissent for the four Court liberals, though Stevens and the others do agree with some aspects of Alito’s majority opinion. Alito’s decision flows directly from an earlier Court precedent (see January 30, 1976). [Oyez (.org), 2011; Moneyocracy, 2/2012]

Entity Tags: John (“Jack”) Davis, Federal Election Commission, Samuel Alito, US Supreme Court, John Paul Stevens

Timeline Tags: Civil Liberties

Cover illustration of the ‘Hype’ DVD.Cover illustration of the ‘Hype’ DVD. [Source: Amazon (.com)]The conservative lobbying group Citizens United (CU) distributes hundreds of thousands of DVDs in newspapers throughout Ohio, Florida, and Nevada, all considered “swing states” in the upcoming presidential election. The DVDs contain a “documentary” entitled Hype: The Obama Effect and are characterized by CU as “truthful attack[s]” on Senator Barack Obama (D-IL). Previous advertisements for the film said the film portrays Obama as an “overhyped media darling,” and quoted conservative pundit Tucker Carlson as saying: “The press loves Obama. I mean not just love, but sort of like an early teenage crush.” The DVD distribution takes place just days before the November 4 election. CU says it is spending over a million dollars to distribute around 1.25 million DVDs, which are included with delivery and store-bought copies of five newspapers: the Columbus (Ohio) Dispatch, the Cincinnati Enquirer, the Cleveland Plain Dealer, the Palm Beach (Florida) Post, and the Las Vegas Review-Journal. The film attacks Obama’s record on abortion rights, foreign policy, and what the Associated Press calls his “past relationships” with, among others, his former pastor, Reverend Jeremiah Wright (see January 6-11, 2008). The DVD also attempts to tie Obama to political corruption in Illinois, and lambasts the news media for what CU calls its preferential treatment of Obama. CU president David Bossie says: “We think it’s a truthful attack. People can take it any way they want.” Bossie was fired from his position on a Republican House member’s staff in 1998 for releasing fraudulently edited transcripts of a former Clinton administration official to falsely imply that then-First Lady Hillary Clinton had committed crimes (see May 1998). Among those interviewed about Obama for the film are conservative columnist Robert Novak, conservative pundit Dick Morris, former Ohio Secretary of State Ken Blackwell, former Arkansas governor Mike Huckabee, former Senator Rick Santorum (R-PA), and author and pundit Jerome Corsi, whom the AP terms a “discredited critic” of Obama. Obama campaign spokesman Isaac Baker calls the DVD “slash and burn politics,” and says the DVD is another tactic of the presidential campaign of John McCain (R-AZ) to “smear” Obama with “dishonest, debunked attacks from the fringes of the far right.” [New York Times, 7/22/2008; Associated Press, 10/28/2008; Media Matters, 10/29/2008]
Newspaper Official Defends Decision to Include DVD - Palm Beach Post general manager Charles Gerardi says of his paper’s decision to include the DVD in its Friday distribution: “Citizens United has every right to place this message as a paid advertisement, and our readers have every right to see it, even if they don’t agree with it. That we accepted it as a paid advertisement in no way implies that this newspaper agrees or disagrees with its message.” [Palm Beach Post, 10/31/2008]
Falsehoods, Misrepresentations, and Lies - Within days, the liberal media watchdog organization Media Matters finds that the DVD is riddled with errors, misrepresentations, and lies.
Claim that Obama 'Threw' Illinois State Senate Election - On the DVD, author David Freddoso claims that in 1998, Obama managed to “thr[o]w all of his opponents off the ballot” to win an election to the Illinois State Senate, a claim that has been disproved.
Claim that Obama Refuses to Work with Republicans - Freddoso also asserts that there are no instances of Obama’s stints in the Illinois State Senate nor the US Senate where he was willing to work with Republicans on legislation, an assertion that Freddoso himself inadvertently disproves by citing several instances of legislation Obama joined with Republicans to pass.
Claim that Obama Wants to Raise Taxes on Middle Class and Small Business - The DVD’s narrator misrepresents Obama’s campaign statements to falsely claim that Obama has promised to “irrevocabl[y]” raise taxes on citizens making over $100,000 to fund Social Security; the reality is that Obama’s proposed tax increase would affect citizens making $250,000 or more. The DVD narrator makes similarly false claims about Obama’s stance on raising the capital gains tax, and on raising taxes on small business owners. Conservative radio host Armstrong Williams tells viewers that Obama will raise taxes on small businesses that employ only a few workers, when in fact Obama has repeatedly proposed cutting taxes on most small businesses. Huckabee makes similar claims later in the DVD.
Claim that Obama Supports Immigration 'Amnesty' - The narrator misrepresents Obama’s stance on immigration reform as “amnesty for the 12 to 20 million people who violated US immigration law,” a position that Obama’s “Plan for Immigration” rejects.
Claim that Obama Wants 'Centralized Government' Health Care - Blackwell, now a contributing editor for the conservative publication TownHall, falsely claims that Obama wants to implement what he calls “a centralized government program that hasn’t worked in Canada, hasn’t worked in England, that has actually taken the freedom from the consumer and limited the choices.” Organizations such as PolitiFact and the New York Times have called claims that Obama supports government-run “single payer” health care false.
Claim that Obama Refused to Protect Lives of Infants - Conservative columnist and anti-abortion activist Jill Stanek claims that Obama opposed legislation that would have protected the lives of babies “born alive” during botched abortion efforts, when in fact no such legislation was ever proposed—the law already protects babies in such circumstances—and the Illinois Department of Public Health has said no such case exists in its records. (Stanek has claimed that she has witnessed such incidents during her time as an Illinois hospital worker.) Stanek has said that she believes domestic violence against women who have had abortions is acceptable, claimed that Chinese people eat aborted fetuses as “much sought after delicacies,” and claimed that Obama “supports infanticide.”
Claim that Obama Supported Attack on Petraeus - The DVD narrator claims that as a US senator, Obama refused to vote for a bill that condemned an attack by liberal grassroots activist organization MoveOn.org on General David Petraeus. In reality, Obama did vote to support an amendment that condemned the MoveOn advertisement.
Claim that Obama Supported Award for Farrakhan - The DVD narrator claims that Obama has aligned himself with the controversial head of the Nation of Islam, Louis Farrakhan, and cites the 2007 decision by Obama’s then-church, Chicago’s Trinity United Church of Christ, to award a lifetime achievement award to Farrakhan. In reality, Obama denounced Farrakhan’s anti-Semitism, and stated that he did not agree with the Trinity decision to give Farrakhan the award.
Claim of Suspiciously Preferential Loan Rate - The DVD narrator claims that Obama received a suspiciously “preferential rate on his super-jumbo loan for the purchase” of a “mansion” in Hyde Park, Illinois, from Northern Trust, an Illinois bank. A Washington Post reporter did make such a claim in a report, but subsequent investigation by Politico and the Columbia Journalism Review showed that the rate Obama received on the loan was consistent with other loans Northern Trust made at the time and not significantly below the average loan rate.
'Citizen of the World' - Corsi claims that Obama does not consider himself an American, but a “citizen of the world.” Media Matters has found numerous instances where Obama proclaims himself a proud American as well as “a fellow citizen of the world.” In 1982, Media Matters notes, then-President Reagan addressed the United Nations General Assembly by saying, “I speak today as both a citizen of the United States and of the world.” Media Matters notes that Corsi’s anti-Obama book Obama Nation was widely and thoroughly debunked (see August 1, 2008 and After), and since its publication, Corsi has made a number of inflammatory and false accusations about Obama and his family (see August 15, 2008, August 16, 2008, September 7, 2008, October 8, 2008, October 9, 2008, July 21, 2009, and September 21, 2010). [Media Matters, 10/30/2008]

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 (Between 9:15 a.m. and 9:25 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 New York Times, in an unsigned editorial, warns of the possible ramifications of an upcoming Supreme Court case, Citizens United v. Federal Election Commission. The case was argued on March 15, eight days before the Web publication date of the editorial (see March 15, 2009) and nine days before the editorial is published in print; it is unclear in retrospect why the editorial is written as if the arguments have not yet taken place, or whether the dates of the published version are accurate. The Times sums up the case—a conservative nonprofit organization, Citizens United (CU), planned to air a 90-minute film that was highly critical of presidential candidate Hillary Clinton (D-NY) in the days before 2008 presidential primary elections, in violation of the 2002 Bipartisan Campaign Reform Act (BCRA, or “McCain-Feingold”—see March 27, 2002) that bans “electioneering communications” within 30 days of a primary election. CU was aware of the law, and filed a suit claiming that the law unconstitutionally violated its First Amendment rights. “The Supreme Court should affirm that ruling,” the Times states. The CU briefs “mak[e] a wide array of claims,” the “most dangerous” of which is a request to overturn the 1990 Austin Court decision (see March 27, 1990) that banned corporations from using monies from their general treasuries. The Times states: “If Citizens United prevails, it would create an enormous loophole in the law and allow corporate money to flood into partisan politics in ways it has not in many decades. It also would seriously erode the disclosure rules for campaign contributions.” [New York Times, 3/23/2009]

Entity Tags: Citizens United, Bipartisan Campaign Reform Act of 2002, US Supreme Court, Hillary Clinton, New York Times

Timeline Tags: Civil Liberties

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

One of the most active investors in clean energy technology, venture fund manager Vinod Khosla, says he has raised $1 billion for two funds, much of the money from outside investors, that will be used primarily to fund cleantech startup businesses. One firm joining Khosla in the investment is CalPERS, the California pension fund, which intends to invest $60 million into an early-stage clean technology fund. Khosla Ventures is also being joined by former Facebook executive Gideon Yu; former fund manager Jim Kim, who also has a background in clean technology; and Pierre Lamond, the co-founder of National Semiconductor and a partner at Sequoia Capital. [GigaOm, 9/1/2009]

Entity Tags: Gideon Yu, CalPERS, Pierre Lamond, Vinod Khosla, Jim Kim

Timeline Tags: US Solar Industry

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

Billionaire investor and philanthropist George Soros says he plans to invest over $1 billion in clean energy technology. Soros is well known for his donations to liberal and progressive causes (see January - November 2004 and February 2007), but has not been prominent in the field of clean energy until now. The online magazine GigaOm reports that Soros’s decision is “another proof point that cleantech has emerged during the recession as one of the few sectors worth investing in.” Clean energy technology, propelled by investments by venture fund manager Vinod Khosla (see September 1, 2009), was the leading investment category in the US in the third quarter of 2009. Soros tells a conference audience in Copenhagen, “I will look for profitable opportunities, but I will also insist that the investments make a real contribution to solving the problem of climate change.” He also intends to start a watchdog group called the Climate Policy Initiative that will, he says, “protect the public interest against special interests.” [GigaOm, 10/12/2009]

Entity Tags: GigaOm, Vinod Khosla, George Soros

Timeline Tags: US Solar Industry

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

The New York Times calls today’s ruling in the Citizens United case (see January 21, 2010) “disastrous,” saying that “the Supreme Court has thrust politics back to the robber-baron era of the 19th century.” The Court has used the excuse of the First Amendment (see January 21, 2010) to “pave… the way for corporations to use their vast treasuries to overwhelm elections and intimidate elected officials into doing their bidding.” The Times recommends that Congress should “act immediately to limit the damage of this radical decision, which strikes at the heart of democracy.” In essence, the Times writes, lobbyists for corporate, labor, and special interests now have the power to sway elections in the directions they prefer. And the ruling gives those same interests the power to intimidate and even coerce candidates. “If a member of Congress tries to stand up to a wealthy special interest,” the Times writes, “its lobbyists can credibly threaten: We’ll spend whatever it takes to defeat you.” The Times notes that since the inception of the nation, its founders have “warned about the dangers of corporate influence. The Constitution they wrote mentions many things and assigns them rights and protections—the people, militias, the press, religions. But it does not mention corporations.” Corporate money has been banned from elections since 1907 (see 1907), and that ban has been in place, in one form or another (see June 25, 1910, 1925, 1935, 1940, June 25, 1943, June 23, 1947, March 11, 1957, February 7, 1972, 1974, May 11, 1976, January 30, 1976, January 8, 1980, March 27, 1990, March 27, 2002, and December 10, 2003), until today. The Times accuses the Court of “overreach[ing],” using “a case involving a narrower, technical question involving the broadcast of a movie that attacked Hillary Clinton during the 2008 campaign (see January 10-16, 2008). The Court elevated that case to a forum for striking down the entire ban on corporate spending and then rushed the process of hearing the case at breakneck speed. It gave lawyers a month to prepare briefs on an issue of enormous complexity (see June 29, 2009), and it scheduled arguments during its vacation” (see September 9, 2009). The Times says the ruling is “deeply wrong on the law,” particularly in declaring corporations as equivalent to people, with the same First Amendment rights. “It is an odd claim since companies are creations of the state that exist to make money. They are given special privileges, including different tax rates, to do just that. It was a fundamental misreading of the Constitution to say that these artificial legal constructs have the same right to spend money on politics as ordinary Americans have to speak out in support of a candidate.” And the Times derides the statement in the Court’s majority opinion that says independent corporate expenditures “do not give rise to corruption or the appearance of corruption,” citing Senator John McCain (R-AZ)‘s characterization of the Court’s reasoning as being plagued by “extreme naivete.” The Citizens United case is, the Times writes, “likely to be viewed as a shameful bookend to Bush v. Gore (see 9:54 p.m. December 12, 2000). With one 5-to-4 decision, the Court’s conservative majority stopped valid votes from being counted to ensure the election of a conservative president. Now a similar conservative majority has distorted the political system to ensure that Republican candidates will be at an enormous advantage in future elections.” The only two ways to rectify the situation, the Times concludes, are to overturn the ruling via Congressional legislation and have a future Court—with a different makeup—overturn the decision itself. [New York Times, 1/21/2010]

Entity Tags: John McCain, Hillary Clinton, US Congress, New York Times, US Supreme Court

Timeline Tags: Civil Liberties

The Wall Street Journal celebrates the Citizens United Supreme Court decision (see January 21, 2010) as a victory for “free speech” (see January 21, 2010). In an unsigned editorial, the Journal celebrates the decision by stating that the Court used the Constitution to “rescue” the political system from “marauding government” elements, particularly a “reckless Congress.” The Journal claims that the Citizens United case rested on the Federal Election Commission (FEC)‘s refusal to allow the airing of a 90-minute political attack documentary on presidential candidate Senator Hillary Clinton (D-NY) because the film was “less than complimentary” of her. In reality, the FEC considered the film “electioneering” by the organization that released the film, Citizens United, and prohibited it from being shown on pay-per-view cable access (see January 10-16, 2008). The Court rejected campaign finance law’s limitation on corporate spending, prompting the Journal to state, “Corporations are entitled to the same right that individuals have to spend money on political speech for or against a candidate.” Any other state of affairs, the Journal writes, constitutes censorship. The Journal criticizes President Obama for speaking out against the decision (see January 21, 2010), saying that Obama put “on his new populist facade to call it ‘a major victory for big oil, Wall Street banks, health insurance companies,’ and other ‘special interests.’ Mr. Obama didn’t mention his union friends as one of those interests, but their political spending will also be protected by the logic of this ruling. The reality is that free speech is no one’s special interest.” The Journal dismisses promises by Congressional Democrats to pass legislation or even bring forth a constitutional amendment limiting corporate donations by stating, “Liberalism’s bullying tendencies are never more on display than when its denizens are at war with the speech rights of its opponents.” The Journal concludes by advocating that the Court overturn its 1976 Buckley v. Valeo decision (see January 30, 1976) that placed modest limits on corporate spending, in essence advocating the complete deregulation of campaign financing. “The Court did yesterday uphold disclosure rules, so a sensible step now would be for Congress to remove all campaign-finance limits subject only to immediate disclosure on the Internet,” the Journal states. “Citizens United is in any event a bracing declaration that Congress’s long and misbegotten campaign-finance crusade has reached a constitutional dead end.” [Wall Street Journal, 1/22/2010]

Entity Tags: Citizens United, Barack Obama, Wall Street Journal, US Supreme Court, Hillary Clinton, Federal Election Commission

Timeline Tags: Civil Liberties

James Bopp Jr.James Bopp Jr. [Source: Associated Press / Politico]A former lawyer for Citizens United (CU), James Bopp Jr., confirms that the organization had a “10-year plan” that culminated in the recent Citizens United ruling that overturned most of US campaign finance law (see January 21, 2010). Bopp has been battling government restrictions on abortion (see November 1980 and After) and campaign finance (see Mid-2004 and After, January 10-16, 2008, and March 24, 2008) for much of his 35-year career. He calls his opponents, including President Obama, “socialists,” and justifies his views by citing the First Amendment. Bopp did not argue the case before the Supreme Court; Citizens United replaced him with what the New York Times calls “a less ideological and more experienced Washington lawyer” (see March 15, 2009). But Bopp is the lawyer who advised CU to use its documentary about presidential candidate Hillary Clinton (D-NY—see January 10-16, 2008) as a test case to push the limits of corporate spending. He says his strategy continues, with the ultimate goal of deregulating campaign finance completely. “We had a 10-year plan to take all this down,” Bopp says. “And if we do it right, I think we can pretty well dismantle the entire regulatory regime that is called campaign finance law.… We have been awfully successful, and we are not done yet.” Law professor and campaign finance law expert Richard Hasen says the CU case “was really Jim’s brainchild.” Hasen explains: “He has manufactured these cases to present certain questions to the Supreme Court in a certain order and achieve a certain result. He is a litigation machine.” Bopp has other cases on appeal with various courts, all designed to do what the Times says “chip away at some of the disclosure laws left intact by the Supreme Court’s ruling in the Citizens United case.” One of Bopp’s main goals is to end the ban on direct donations by corporations to candidates, a goal law professor Nathaniel Persily says is logical in light of Bopp’s earlier efforts: “If you cannot ban corporate spending on ads, how is it that you are allowed to ban corporate contributions to candidates? That is the next shoe to drop.” He also wants to end all disclosure requirements, explaining, “Groups have to be relieved of reporting their donors if lifting the prohibition on their political speech is going to have any meaning.” Forcing groups who buy political commercials to disclose their donors is nearly as punitive, he says, “as an outright criminal go-to-jail-time prohibition.” Bopp says he harbors no ill will towards CU from replacing him with another lawyer to argue the case before the Court. “I understand that law is art,” he says. “Picasso, Van Gogh, Michelangelo—they are all very different, but all create masterpieces.” [New York Times, 1/25/2010]

Entity Tags: Nathaniel Persily, Barack Obama, Citizens United, New York Times, Hillary Clinton, US Supreme Court, James Bopp, Jr, Richard L. Hasen

Timeline Tags: Civil Liberties

The retired director of the ACLU, Ira Glasser, writes a detailed editorial in support of the recent Citizens United ruling that opened the way for corporations and labor unions to spend unlimited money in campaign activities (see January 21, 2010). The ACLU supported the case throughout its progression (see January 10-16, 2008, March 24, 2008, March 15, 2009, June 29, 2009, and September 9, 2009), and filed briefs in support of the plaintiff, the conservative advocacy group Citizens United. Glasser says that the “screaming dismay” that “most liberals” evinced on hearing of the decision was unwarranted. Corporations are still banned from directly contributing to political campaigns, and President Obama’s assertion that the decision “reversed a century of law” is incorrect; the 1907 Tillman Act that banned corporations from contributing to campaigns or candidates is still in effect (see 1907). Instead, Glasser writes, the decision is “a huge victory… for freedom of speech and against government censorship” (see January 21, 2010, January 22, 2010, and February 2, 2010). Corporations, he writes, have the same right to speech as individuals, and they exercise that speech by spending money promoting issues and candidates, or criticizing those issues and candidates. He cites two instances in which the ACLU was stopped by the Federal Election Commission (FEC) from engaging in “political free speech,” one in 1972 when the FEC stopped the ACLU from taking out an ad in the New York Times criticizing President Nixon’s opposition to school busing to implement integration, and in 1984, when the FEC barred the ACLU from making public statements critical of President Reagan. Both instances took place inside the “window” of time before an election (30 days before a primary, 60 days before a general election) in which such utterances were considered supporting a candidate. Nonprofit groups such as Citizens United have been victimized for decades by campaign finance restrictions, Glasser writes. Later in the article, he derides the idea that restricting or controlling speech creates equality between rich and poor in elections, curbing the propensity for the rich to wield more influence and be heard more broadly than less wealthy citizens or organizations. “Money isn’t speech, but how much money one has always determines how much speech one has,” Glasser writes. “Most if not all of you reading this have never had as much speech as, say, the New York Times or George Soros or Nelson Rockefeller or George Bush or, as we recently discovered in my city, Mayor [Michael] Bloomberg. The inequities of speech that flow from the inequities of wealth are certainly a big and distorting problem for a democracy, and have always been so, and not just during elections. No one knows how to remedy that, short of fundamental re-distributions of wealth. But I’ll tell you what isn’t a remedy: granting the government the power to decide who should speak, and how much speech is enough. Nothing but disaster flows from that approach, and that was what was at stake in this case.” He concludes by advocating public financing of elections entirely, writing: “Liberals and Democrats have been the chief offenders… favoring equity in the abstract but never seeing how the particular reforms they advocated made the problems they wished to remedy worse, and never seeing that giving the government the authority to regulate speech was not a good thing. Maybe now this result, which has steamed up liberals and Democrats, may at last shift their attention to the kind of public financing that equitably provides money for more speech instead of pretending to create equity by granting the government the authority to restrict speech. We shall see.” [Huffington Post, 2/3/2010]

Entity Tags: Citizens United, American Civil Liberties Union, Federal Election Commission, Barack Obama, Tillman Act, Ira Glasser

Timeline Tags: Civil Liberties

Campaign finance lawyers tell the New York Times that a loophole in the recent Citizens United Supreme Court decision, a decision that allows corporations and labor unions to spend unlimited amounts on political advertising (see January 21, 2010), could allow corporations and unions to make their donations anonymously and avoid the disclosure requirements that the Citizens United ruling left in place. Two earlier Court decisions, the 1986 Federal Election Commission v. Massachusetts Citizens for Life (see December 15, 1986) and the 2007 Wisconsin Right to Life rulings (see June 25, 2007), could be used in tandem with the Citizens United decision to make it possible for corporations and unions to donate anonymously to trade organizations and other nonprofit entities. Those entities could then use the money to finance political advertisements. Those nonprofit groups, usually called 501(c) groups after the applicable portion of the IRS tax code, had been allowed to finance so-called “electioneering communications” long before the Citizens United decision, but until now, corporations have not been allowed to spend unlimited amounts of money advocating for a candidate’s election or defeat. Nor could they donate money to nonprofit groups that engage in “electioneering communications.” The 1986 decision gave some nonprofit organizations the right to advertise for or against political candidates, but banned corporations and unions from giving money to those groups. The Citizens United decision overturned that ban. And the 2006 ruling allowed corporations to spend money on “electioneering communications.” Now, experts like corporate lawyer Kenneth A. Gross, a former associate general counsel for the Federal Election Commission (FEC), believe that corporations will donate heavily and anonymously to those “third party” groups to buy political advertising. “Clearly, that’s where the action’s going to be,” Gross says. Corporations that spend money directly on political advertising still have to identify themselves in the ads, Gross says, and report their donors. Many corporations do not want to identify themselves in such advertisements. The nonprofit groups are an attractive alternative to public disclosure, Gross says. Congressional Democrats call the loophole dangerous, and have proposed legislation that would require nonprofit groups to disclose their donors for political advertising (see February 11, 2010). The Times states, “It is impossible to know whether corporations or unions are taking advantage of the new freedom to funnel pro- or anti-candidate money through nonprofit organizations.” [New York Times, 2/27/2010]

Entity Tags: New York Times, US Supreme Court, Kenneth A. Gross

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

Adam Skaggs, an attorney for the Brennan Center for Justice, writes that the controversial Citizens United decision by the Supreme Court (see January 21, 2010) is going to have a huge impact on judicial elections in 2010 and beyond. The record for the costliest judicial race in US history was set in a 2004 Illinois contest between Lloyd Karmeier and Gordon Maag, competing for the bench in the state’s 5th Judicial District. Between them, they raised and spent almost $9.4 million, more than double the previous national record, and an amount Karmeier later called “obscene.” Special interests on both sides of the election became heavily involved, with Karmeier’s corporate donations from such organizations as the US Chamber of Commerce and State Farm Insurance winning out over Maag’s donations from trial lawyers. After the election, Karmeier cast the deciding vote in a case that saved State Farm $500 million. An Ohio labor official said in commenting on the often-heavy spending on judicial races, “We figured out a long time ago that it’s easier to elect seven judges than to elect one hundred and 32 legislators.” The Citizens United case, Skaggs writes, will undoubtedly lead to corporate spending in judicial races like never before. That spending, he writes, “threatens to further erode the judiciary’s independence.” Even former Supreme Court Justice Sandra Day O’Connor has said that “Citizens United has signaled that the problem of campaign contributions in judicial elections might get considerably worse and quite soon.” Skaggs cites a number of races that will likely be targets for big corporate donors:
bullet Illinois Supreme Court Chief Justice Thomas R. Fitzgerald is a probable target after striking down a 2005 law that placed caps on medical malpractice claims; Skaggs predicts the same corporate interests that helped Karmeier win a judicial seat will attempt to defeat Fitzgerald.
bullet In Alabama, three seats currently held by Republicans are contested. One of these, Alabama Supreme Court Justice Tom Parker, is the likely recipient of heavy corporate funding, because, as Skaggs writes, groups like the Business Council of Alabama want Parker on the bench to protect conservative interests on economic issues. That corporate spending will likely outstrip spending on Democratic candidates, which will come primarily from liberal judicial groups and the state’s Democratic Party.
A 2006 study by the New York Times showed that judges routinely decide cases involving campaign donors, and in 70 percent of those cases, find in favor of those donors. One judge in the study voted on behalf of his donors 91 percent of the time. In Nevada, judges routinely accept huge donations even when running unopposed, often from donors who have cases pending before those judges. Nevada voters will decide in the November elections whether to scrap the system of an elected judiciary and move to an appointment system. Skaggs recommends that states should adopt public financing systems for judicial elections (four states—New Mexico, North Carolina, West Virginia, and Wisconsin already do so) and eliminate entirely the concept of outside interests donating to judicial campaigns. He recommends stricter disclosure rules, so that the public knows who is contributing how much to judicial candidates. And, he writes, “states should institute new disqualification regulations to ensure that, if a judge is assigned to hear the case of a major campaign supporter, he or she must step aside and let a wholly impartial judge preside.” Otherwise, he writes: “The very legitimacy of the courts depends on the public believing that judges will treat every party without bias or favor. If, in the Citizens United era, states don’t adopt public financing and strong disclosure and disqualification rules, the judiciary’s credibility will dissolve—and quickly.” [New Republic, 4/5/2010]

Entity Tags: New York Times, Adam Skaggs, Business Council of Alabama, Lloyd Karmeier, US Chamber of Commerce, Sandra Day O’Connor, Thomas R. Fitzgerald, Tom Parker (ALSC), Gordon Maag, US Supreme Court

Timeline Tags: Civil Liberties

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

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

US Senate candidate Sharron Angle (R-NV) falsely claims that the Democratically backed DISCLOSE Act, a bill that would have imposed some disclosure regulations on corporate and union campaign financiers (see July 26-27, 2010), was passed into law. Angle is challenging Senate Majority Leader Harry Reid (D-NV). The previous day, Angle posted on Twitter that the DISCLOSE Act’s defeat was “a great victory for the first amendment.” But today, Angle joins conservative talk radio host Heidi Harris to claim that the act is actually in effect and she opposes it. Asked about her position on campaign finance, Angle says: “Well I think that the Supreme Court has really made their decision on this, they found that we have a First Amendment right across the board that was violated by the McCain-Feingold act (see March 27, 2002 and January 21, 2010). And that’s what they threw out, was those violations. The McCain-Feingold Act is still in place. The DISCLOSE Act is still in place. It’s just that certain provisions within that they found to be definitely violating the First Amendment. If we didn’t have the DISCLOSE Act there would be a lot of different things that people wouldn’t be able to find out. And certainly you can go to FEC.gov and see where Harry Reid is getting most of his money from special interests.” [Las Vegas Sun, 7/28/2010; TPMDC, 7/28/2010]

Entity Tags: Harry Reid, Sharron Angle, US Supreme Court, DISCLOSE Act of 2010

Timeline Tags: Civil Liberties

Democrats are aghast at the amount of corporate spending they expect to be used against them in the 2010 elections, according to media reports. The US Chamber of Commerce (see September 20, 2010, September 30, 2010, and October 2010) projects that it will spend $75 million this year, over double its spending of $35 million in 2008, to oppose Democrats running for federal and state office. USCoC officials say that spending could go even higher. Other organizations, such as American Crossroads, a right-wing political group headed by former Bush political advisor Karl Rove (see September 20, 2010 and February 21, 2012), are on track to raise and spend tens of millions, again to fund political activities designed to prevent Democrats from being elected. A report circulating among Democratic Congressional leaders says that some $300 million has been raised for the 2010 campaign, all coming from 15 conservative tax-exempt organizations. Sheila Krumholz of the Center for Responsive Politics says: “A commitment of $300 million from just 15 organizations is a huge amount, putting them in record territory for groups on the right or left. With control of Congress hanging in the balance, this kind of spending could have a major impact.” Chris Van Hollen (D-MD), chairman of the Democratic Congressional Campaign Committee (DCCC), says the amount of corporate funding for Republican political activities is “raising the alarm bell.” The DCCC spent $177 million in all of 2008’s Congressional races. Labor unions and other groups allied with Democrats plan heavy spending of their own, but nothing to compare to conservative corporate funding. The Service Employees International Union (SEIU), for example, plans to spend $44 million on election-related spending this year. Political scientist Anthony J. Corrado Jr. says: “What we are seeing is that major businesses and industries are taking advantage of the recent court ruling and favorable political environment. They are already committing substantially more money than they have in any previous election cycles.” Corrado is referring to the controversial Citizens United Supreme Court decision (see January 21, 2010) that has overturned almost a century’s worth of campaign spending limitations. USCoC officials also point to a 2007 Supreme Court ruling that overturned the ban on political issue advertising by corporations and labor unions close to an election (see June 25, 2007). The Los Angeles Times reports that the heavy corporate fundraising for Republican political interests is driven largely by corporate opposition to the Democrats’ focus on health care reform, and a bill passed in July that established stricter government monitoring and regulation of the financial system. Roger Nicholson of the International Coal Group, a mining company, recently wrote to fellow executives urging them to contribute money to defeat the “fiercely anti-coal Democrats” in Washington, specifically targeting a number of Democrats in Kentucky and West Virginia. Five of the largest health insurers, including Aetna, Cigna, and United HealthCare, are banding together to create and fund a new nonprofit group to help influence elections. The group has not yet been formed, but reports say that it will spend some $20 million to defeat Democrats. [Los Angeles Times, 8/2/2010]

Entity Tags: Karl C. Rove, Anthony J. Corrado Jr., American Crossroads, Aetna, Chris Van Hollen, International Coal Group, Service Employees International Union, US Supreme Court, Los Angeles Times, Roger Nicholson, UnitedHealth Group, Cigna, US Chamber of Commerce, Sheila Krumholz

Timeline Tags: Civil Liberties, 2010 Elections

Institute for Research & Education on Human Rights logo.Institute for Research & Education on Human Rights logo. [Source: IREHR / Facebook]The Institute for Research & Education on Human Rights (IREHR) issues a comprehensive, multi-part report on the American “tea party” movement. The report is written by IREHR vice president Devin Burghart and IREHR president Leonard Zeskind, both accomplished authors and researchers. The report examines six national organizational networks which Burghart and Zeskind say are “at the core of the tea party movement.” These six include: the FreedomWorks Tea Party; the 1776 Tea Party (“TeaParty.org”); Tea Party Nation; Tea Party Patriots; ResistNet; and the Tea Party Express. The report examines their origins, structures, leadership, policies, funding, membership, and relations with one another. [Institute for Research & Education on Human Rights, 8/24/2010]
Data Collection Methodology - The authors provide details of their data collection methodology in a separate section of the report. [Institute for Research & Education on Human Rights, 10/19/2010]
Racism, Anti-Semitism Rampant in Many (Not All) Tea Party Organizations - The report explicitly notes that “[i]t would be a mistake to claim that all tea partiers are nativist vigilantes or racists of one stripe or another.” It shows that while tea party organizations, and many media outlets, paint tea partiers as concentrated primarily on “budget deficits, taxes, and the power of the federal government,” in reality many tea party organizations are very focused on racial, nationalist, and other social issues (see January 14, 2010). The report finds: “In these ranks, an abiding obsession with Barack Obama’s birth certificate (see June 13, 2008) is often a stand-in for the belief that the first black president of the United States is not a ‘real American.’ Rather than strict adherence to the Constitution, many tea partiers are challenging the provision for birthright citizenship found in the 14th Amendment.” Many (not all) tea party organizations open their ranks “to anti-Semites, racists, and bigots,” the report finds, and in many of those organizations, the racists and bigots have leadership positions. And, it finds, white supremacist organizations routinely attend and even present at tea party rallies, “looking for potential recruits and hoping to push these (white) protesters towards a more self-conscious and ideological white supremacy.” The report notes that former Ku Klux Klan leader David Duke is trying to find money and support among tea party organizations to launch a 2012 bid for the Republican presidential nomination. The leaders of the 1776 Tea Party organization “were imported directly from the anti-immigrant vigilante organization, the Minuteman Project,” the report notes. Tea Party Nation has attracted a large contingent of so-called “birthers,” Christian nationalists, and nativists, many of whom display openly racist sentiments; some other tea party organizations have now distanced themselves from that particular group. ResistNet and Tea Party Patriots, the two largest “umbrella” organizations or networks, are also rife with anti-immigrant nativists and racists; the Tea Party Patriots have openly embraced the idea of the repeal of the 17th Amendment (see April 8, 2010). At least one group, the Washington DC-based FreedomWorks Tea Party, has made some efforts to focus its actions solely on economic issues and eschew social or religious issues; those efforts have largely failed. There is a large and disparate “schema” of racist organizations and belief systems in America, the report notes, from Nazi sympathizers to “America-first isolationists,” “scientific” racists, nativists, “paleoconservatives,” and others. Generally, the more mainstream and less extremist racist movements and persons gravitate to tea party organizations. “[T]he white nationalist movement is divided between two strategic orientations: the go-it-alone vanguardists and the mainstreamers who seek to win a majority following among white people. It is decidedly the mainstreamers, such as the Council of Conservative Citizens… who seek to influence and recruit among the tea partiers.” The same can be said of militia groups: the more mainstream of these organizations are the ones taking part in, and recruiting at, tea party events. The two—racist and militia groups—have, of course, a heavy overlap in membership and belief structures. Tea party leaders and members tend to strongly dispute evidence that their fellows espouse racist beliefs. [Institute for Research & Education on Human Rights, 8/24/2010; Institute for Research & Education on Human Rights, 10/19/2010]
Economic Beliefs Tied to Anger at Immigrants, 'Undeserving Poor' - The tea parties are most often characterized as anti-tax economic conservatives who oppose government spending; however, the report finds, “there is no observable statistical link between tea party membership and unemployment levels.… And their storied opposition to political and social elites turns out to be predicated on an antagonism to federal assistance to those deemed the ‘undeserving poor.’” Many tea party members and organizations, including some of the movement’s most visible political leaders, are openly anti-immigrant. The House’s Tea Party Caucus, led by Representative Michele Bachmann (R-MN), has a significant overlap with the members of the House Immigration Reform Caucus, led by tea party supporter Brian Bilbray (R-CA). The Immigration Reform Caucus has introduced legislation that would end the Constitution’s principle of “birthright citizenship.” The racist and anti-immigrant themes at play in many tea party organizations have dovetailed in these organizations’ attacks on President Obama as being a “non-American.” The report observes: “The permutations go on from there: Islamic terrorist, socialist, African witch doctor, lying African, etc. If he is not properly American, then he becomes the ‘other’ that is not ‘us.’ Five of the six national factions have these ‘birthers’ in their leadership; the only exception being FreedomWorks.”
'Nationalism' of Tea Parties - Most tea party organizations hark back to the Revolutionary War era and the Founding Fathers as their forebears, sometimes even dressing in 18th-century costumes, waving the Gadsden “Don’t Tread on Me” flag, and claiming that the US Constitution as written should be the touchstone of all legislative policies. However, the report notes that their “American nationalism” is hardly inclusive: “[T]heirs is an American nationalism that does not always include all Americans. It is a nationalism that excludes those deemed not to be ‘real Americans’; including the native-born children of undocumented immigrants (often despised as ‘anchor babies’), socialists, Moslems, and those not deemed to fit within a ‘Christian nation.’” The report connects the tea parties’ concept of nationalism (see October 19, 2010) back to the “America First” ideology of Father Charles Coughlin, a vocal anti-Semite and supporter of Nazism (see October 3, 1926 - 1942). The report notes: “As the Confederate battle flags, witch doctor caricatures, and demeaning discourse suggest, a bright white line of racism threads through this nationalism. Yet, it is not a full-fledged variety of white nationalism. It is as inchoate as it is super-patriotic. It is possibly an embryo of what it might yet become.”
Multi-Million Dollar Complex Heavily Funded by Right-Wing Foundations - The tea party movement presents itself as a loose confederation of ground-up, grassroots groups and organizations put together by principled citizens driven by their political and social concerns. However, the reality is that many tea party organizations are for-profit corporations and/or political action committees, with some equally well-funded non-profit corporations included in the mix. Collectively, they have succeeded at trumping the Democrats’ advantage in Web-based mobilization and fundraising.
Resurrection of 'Ultra-Conservative Wing of American Political Life' - The report finds that the tea party organizations “have resuscitated the ultra-conservative wing of American political life, created a stiff pole of opinion within Republican Party ranks, and they have had a devastating impact on thoughtful policy making for the common good, both at the local and state as well as at the federal levels.” The report finds: “The tea party movement has unleashed a still inchoate political movement by angry middle class (overwhelmingly) white people who believe their country, their nation, has been taken from them. And they want it back.” Whom they apparently “want it back” from is from non-white Americans. The report notes that the tea party slogan, “Take It Back, Take Your Country Back” is “an explicitly nationalist refrain. It is sometimes coupled with the assertion that there are ‘real Americans,’ as opposed to others who they believe are driving the country into a socialist ditch.”
Three Levels of Structure - As with most entities of this nature, there are three fundamental levels to the “tea party structure.” Some 16 to 18 percent of Americans say they have some sympathy with tea party ideals—these citizens, numbering in the tens of millions, form the outer ring of the structure. The next ring as an ill-defined group of perhaps two million activists who go to meetings and rallies, and buy literature. The core is composed of some 250,000 heavily involved members who take part in the Web-directed activities of the tea party organizations. The report focuses on this group as the hub of what it calls “tea party nationalists.” As time goes on, the tea parties continue to add members to their ranks. The Tea Party Patriots and ResistNet are, at this time, experiencing the fastest rate of growth; the report notes, “This would tend to indicate a larger movement less susceptible to central control, and more likely to attract racist and nativist elements at the local level.” The tea parties as a whole will continue to wield their influence on American political and social debates, though the tea parties may begin to splinter as some members move into the more structured Republican Party apparatus and others move towards the more extremist white nationalist organizations. The report does not include local groups not affiliated with one or the other of the national networks, and the ancillary organizations that have worked alongside the tea parties since their inception. The report notes some of these ancillary organizations as Ron Paul’s Campaign for Liberty (see August 4, 2008), Americans for Prosperity (see Late 2004), the National Precinct Alliance, and the John Birch Society (JBS—see March 10, 1961 and December 2011). The report also notes the existence of the “9-12 movement” (see March 13, 2009 and After), but does not count that as a separate network, and goes on to note that after the 2009 9-12 rally in Washington (see September 12, 2009), many 9-12 groups joined a tea party organization. [Institute for Research & Education on Human Rights, 8/24/2010]
Response - Judson Phillips, the founder of Tea Party Nation, responds to the release of the IREHR report by saying: “Here we go again. This is typical of this liberal group’s smear tactics.” Phillips does not cite examples of the report’s “smear tactics.” [Kansas City Star, 10/19/2010]

Entity Tags: National Precinct Alliance, ResistNet, Tea Party Express, US House of Representatives Immigration Reform Caucus, Tea Party Patriots, Tea Party Nation, Minuteman Project, US House of Representatives Tea Party Caucus, Michele Bachmann, Leonard Zeskind, Judson Phillips, 1776 Tea Party, Americans for Prosperity, Barack Obama, Brian Bilbray, Council of Conservative Citizens, Charles Edward Coughlin, Devin Burghart, John Birch Society, Institute for Research & Education on Human Rights, FreedomWorks Tea Party, Campaign for Liberty, David Duke

Timeline Tags: Domestic Propaganda

Research from the media analysis firm Borrell Associates and other sources shows that spending for the 2010 midterm elections will outstrip the record-breaking spending of the 2008 elections, which centered around a presidential contest. The controversial Citizens United Supreme Court decision (see January 21, 2010) has “opened the floodgates” for corporate money to be used in electioneering and advertising, much of that money going anonymously to political parties and operations. It is unprecedented for midterm elections to involve more spending than presidential-year elections. Kip Cassino, vice president of research at Borrell Associates, says the Citizens United decision is directly responsible for the massive upswing in spending. “Unlike a lot of industries in the United States right now, which are seeing some downturns, political spending is absolutely a growth industry,” Cassino says. Corporate money is behind the surge, accounting for what he says is at least a 10 percent jump in advertising. Evan Tracey, president of the Campaign Media Analysis Group, says: “The unwritten charter of these [anonymously funded political] groups is to really be disruptive and try to go in there and turn a race on its head—or put a candidate on the defense. And by that nature, most of those ads that they’re gonna run this fall are gonna be negative ads.” Labor unions account for some of the surge in spending, but most of it comes from corporate donors, from conservative organizations such as the US Chamber of Commerce (see September 20, 2010, September 30, 2010, and October 2010), Americans for Prosperity (AFP—see Late 2004, May 29, 2009, November 2009, and July 3-4, 2010), and American Crossroads, a nonprofit political group headed by former Bush political advisor Karl Rove (see September 20, 2010, February 21, 2012, Late March 2012, and Late May 2012). Senator Robert Menendez (D-NJ) says, “While each of our campaigns has the resources they need to be competitive, we now face shadow groups putting their thumbs on the scale with undisclosed, unlimited, and unregulated donations.” However, national groups are not all of the important players in the spending surge. Tracey says: “We have a lot of little individual state-type groups that are starting to show up in some of the bigger races. And I think they’re going to play a much larger role in the fall.” One group cited in the research is a Nevada-based group called Americans for New Leadership, which has targeted Senate Majority Leader Harry Reid (D-NV) for defeat in a barrage of advertisements aired recently throughout the state. The group says it has spent $300,000 in ads attacking Reid and is prepared to spend more, but has not disclosed from whom that money comes. Senate and House races are seeing more involvement by heavily-funded groups placing ads in local markets for Republican candidates, or attacking Democrats, particularly from AFP, which has already spent some $1.5 million on House races. Craig Holman of the watchdog group Public Citizen says: “In 2004 and 2006, literally 100 percent of the groups were fully complying with the disclosure laws. Today, most groups do not disclose where they’re getting their money from.” The New York Times reports, “The situation raises the possibility that a relatively small cadre of deep-pocketed donors, unknown to the general public, is shaping the battle for Congress in the early going.” Sheila Krumholz of the Center for Responsive Politics observes: “Corporate interests are buying the elections? Oh no, it’s much worse than that. We don’t know who’s buying the election.” [New York Times, 9/13/2010; National Public Radio, 9/16/2010; Think Progress, 9/17/2010]

Entity Tags: Evan Tracey, Americans for New Leadership, American Crossroads, Americans for Prosperity, Craig Holman, Robert Menendez, Borrell Associates, US Chamber of Commerce, Kip Cassino, Karl C. Rove, Sheila Krumholz, Harry Reid

Timeline Tags: Civil Liberties, 2010 Elections

The Tea Party Patriots (TPP—see August 24, 2010), one of the most influential of national “umbrella” tea party organizations, announces the receipt of a $1 million donation for get-out-the-vote (GOTV) efforts. The TPP refuses to disclose the name of the donor. Two thousand eight hundred local tea party groups are eligible for money from the grant, and the TPP says it will distribute all of the monies by October 4. TPP’s Mark Meckler says: “This particular fund is intended to be applied for and spent by the [November midterm] election. The people who get the grants are required to spend them by election day.” TPP policy advisor Ernie Istook, a former Republican congressman, calls the donation “fertilizer for the grassroots.” Istook continues: “If you have a lawn, you water it, you tend to it, you weed it. That’s what’s happening here. And it is unique. I can’t think of anything quite like it happening before.” The TPP has said it will not endorse particular candidates for office, unlike another “umbrella” tea party organization, Tea Party Express and that group’s affiliated PAC. TPP official Jenny Beth Martin says the money is not to be used to endorse or attack individual candidates. Instead, she says: “What we’re doing is what our 2,800 local groups on the ground have been asking us to do. We’re not taking advantage of a loophole. What we’re making sure is that we support the local organizers on the ground.” Meckler adds, “We want to make sure people are out there voting for fiscal responsibility.” However, as the elections approach, tea party groups begin speculating where exactly the money is going. The TPP consistently refuses to disclose what groups receive money, or how much is disbursed. Dee Park of the Moore Tea Citizens in Moore County, North Carolina, is one who wonders about the money. “We wrote what we thought was a terrific proposal, but they didn’t fund it,” she says. No one from the TPP has contacted Park to inform her that her proposal was turned down. Appeals from other tea party groups asking for information about the money disbursement have been ignored—though the TPP regularly sends out appeals for more donations. Rhode Island tea party organizer Marina Peterson is in a similar position to Park; she submits a proposal for five groups in her area, but never hears anything from the TPP. Asked by a reporter if she knows who is receiving grants, she replies, “Wouldn’t we all like to know?” She says she was concerned from the outset about the anonymous nature of the donation, telling the reporter: “How do we know we want to take that money if we don’t know who the person is? What if it was [liberal billionaire] George Soros?” (see January - November 2004) Peterson says that every political organization, including the TPP and local tea parties, should be upfront and transparent about their funding. She recalls asking Meckler via email about the grant, and says that “[h]e went completely on the defensive when I asked him about it.” Meckler later tells Peterson that the TPP would not release information about the grant recipients to “shield” them from any controversy associated with the donation. Two groups do admit to receiving donations. The Chico Tea Party in California received $5,000, which it says it is spending on buying advertising on highway billboards. And the Nevada County, California, Tea Party Patriots received $10,000, which it says it is spending on billboards and newspaper ads. The Nevada County organization is headed by Stan Meckler, Mark Meckler’s father. The Chico organization says 12 groups in California have received money, though it does not disclose their names. Arizona tea partiers say they have used grant money to buy radio and billboard ads, but refuse to disclose amounts. And the TPP’s Florida coordinator Everett Wilkinson says his South Florida Tea Party received funding, but refuses to disclose an amount. Reporter Stephanie Mencimer writes: “This scuffle over the secret donation is symbolic of the internal conflict within the tea party movement. There are tea party activists who believe the movement’s rhetoric about transparency and accountability. But the movement also includes leaders and others who are willing to engage in and tolerate the funny-money games of business-as-usual politics. With the elections likely to enhance the political clout of the tea party movement, this tension between principles and practices is likely to intensify. After all, can tea partiers really claim they are ‘we the people’ when they are being subsidized by secret millionaires and guided by leaders who refuse to be accountable to those very people?” [Slate, 9/21/2010; Mother Jones, 11/1/2010] The donation is later shown to come from Republican financier Raymon F. Thompson, a former CEO who has provided Meckler and Martin with a luxurious private jet which they are using to fly around the country (see October 28, 2010).

Entity Tags: George Soros, Everett Wilkinson, Dee Park, Chico Tea Party, Stephanie Mencimer, Stan Meckler, Tea Party Patriots, Ernest Istook, Mark Meckler, Marina Peterson, Jenny Beth Martin, South Florida Tea Party, Raymon F. Thompson, Nevada County, California Tea Party Patriots

Timeline Tags: Civil Liberties

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

Fred Wertheimer of Democracy 21, an organization devoted to stricter campaign finance reform, writes an impassioned op-ed about the deleterious effects of unchecked corporate money pouring into elections as a result of the Citizens United decision (see January 21, 2010). Wertheimer is also angry about the success of recent Republican efforts to block passage of the DISCLOSE Act, which would have required some accountability for corporate and union donors (see July 26-27, 2010). Wertheimer begins by tracing how drastically the landscape of campaign finance has changed: In 2000, when Congress passed legislation restricting the ability of so-called “527” groups to affect federal elections, the laws passed with heavy bipartisan support (see 2000 - 2005 and June 30, 2000). Only six Republican senators, including current Senate Minority Leader Mitch McConnell (R-KY), voted against the legislation. Last week, when the Senate voted down the latest iteration of the DISCLOSE Act, McConnell led the Republican efforts against the bill, and all 38 GOP senators voted against it. (The latest version of the DISCLOSE Act failed to reach the Senate floor, as Democrats were unable to break a Republican filibuster against the bill.) Wertheimer writes, “Senate Republicans went from 89 percent support for campaign finance disclosure in 2000 to 100 percent opposition to campaign finance disclosure in 2010.” Wertheimer goes on to write: “Ten years after Congress passed campaign finance disclosure for 527 groups by overwhelming bipartisan votes, the campaign finance disclosure issue hasn’t changed nor has the national consensus in the country in favor of disclosure; the votes of Senate Republicans, however, have changed. In 2000, Senator McConnell was a lonely Senate Republican voice against campaign finance disclosure. In 2010, Senator McConnell had 38 Republican Senators voting in lockstep with him to block campaign finance disclosure and to deny citizens information they have a basic right to know.” [Huffington Post, 9/28/2010]

Entity Tags: Fred Wertheimer, Mitch McConnell, DISCLOSE Act of 2010

Timeline Tags: Civil Liberties

US-Bahrain Business Council logo.US-Bahrain Business Council logo. [Source: US-Bahrain Business Council]The US Chamber of Commerce (USCC), in a methodology made legal by the Citizens United Supreme Court decision (see January 21, 2010), uses foreign-generated funds to disseminate “attack ads” against Democrats running for office in the November midterm elections. The USCC has targeted, among others, Jack Conway (D-KY), Senator Barbara Boxer (D-CA), Governor Jerry Brown (G-CA), and Representatives Joe Sestak (D-PA) and Tom Perriello (D-VA). The USCC, a private trade association organized as a 501(c)(6) that can raise and spend unlimited funds without disclosing any of its donors, has promised to spend $75 million to prevent Democrats from winning in the upcoming elections. The USCC has, as of September 15, aired over 8,000 television ads supporting Republican candidates and attacking Democrats, according to information from the Wesleyan Media Project. The USCC has far outspent any other public or private group, including political parties. The funds for the USCC’s efforts come from its general account, which solicits foreign funding. Legal experts say that the USCC is likely skirting campaign finance law that prohibits monies from foreign corporations being spent in American elections. The USCC has been very active in recent years in raising funds from overseas sources, with such funds either going directly to the USCC or being funneled to the USCC through its foreign chapters, known as Business Councils or “AmChams.” Some of the largest donations come from the oil-rich country of Bahrain, generated by the USCC’s internal fundraising department in that nation called the “US-Bahrain Business Council” (USBBC). The USBBC is an office of the USCC and not a separate entity. The USBBC raises well over $100,000 a year from foreign businesses, funds shuttled directly to the USCC. A similar operation exists in India through the auspices of the USCC’s US-India Business Council (USIBC). The USIBC raises well over $200,000 a year for the USCC. Other such organizations exist in Egypt, Russia, China, Saudi Arabia, Brazil, and other countries, with those nations’ laws making it difficult or impossible for the public to learn how much money is being raised and by which foreign entities. Multinational firms such as BP, Shell Oil, and Siemens are also active members of the USCC, and contribute heavily to the organization. If those firms’ monies are going to fund political activities, the Citizens United decision makes it legal to keep that fact, and the amount of money being used to fund those political activities, entirely secret. It is known that the health insurer Aetna secretly donated $20 million to the USCC to try to defeat the Affordable Care Act (ACA) last year, and News Corporation, the parent of Fox News, donated $1 million to the USCC to use in political activities (see September 30, 2010). The USCC is a strong opponent of Democrats’ efforts to persuade American businesses to hire locally rather than outsourcing jobs to countries such as China and India, and has fought Democrats who oppose free trade deals that would significantly benefit foreign entities. The USCC claims that it “has a system in place” to prevent foreign funding for its “political activities,” but refuses to give any details. [Think Progress, 10/5/2010]

Entity Tags: Joe Sestak, British Petroleum, Barbara Boxer, Aetna, Jack Conway, US-India Business Council, Wesleyan Media Project, US Chamber of Commerce, News Corporation, Royal Dutch/Shell, US-Bahrain Business Council, Siemens, Thomas Perriello, Edmund Gerald (“Jerry”) Brown, Jr

Timeline Tags: Civil Liberties

American Future Fund logo.American Future Fund logo. [Source: American Future Fund / Talking Points Memo]Three citizen watchdog and pro-campaign finance groups, the Center for Media and Democracy, Protect Our Elections, and Public Citizen, allege that the tax-exempt nonprofit group American Future Fund (AFF) is violating tax law by operating primarily as a political advocacy group. AFF was founded and is operated by Nick Ryan, a former campaign advisor for former Senator Rick Santorum (R-PA) and former Representative Jim Nussle (R-IA), and the head of a political consulting firm, the Concordia Group. Ryan also founded a pro-Santorum “super PAC” called the Red, White and Blue Fund. State Senator Sandra Greiner (R-IA) and prominent Iowa Republican Allison Dorr Kleis serve as the organization’s directors. The group states that it advocates for “conservative and free market ideals.” The New York Times will later confirm that Bruce Rastetter, co-founder and CEO of Hawkeye Energy Holdings, a large ethanol company, provided the seed money for AFF in 2008. Investigations by the Center for Public Integrity will also show that the Pharmaceutical Research and Manufacturers of America (PhRMA) contributed $300,000 to the organization in 2010. The group also received $2.44 million from another 501(c)4 group, the American Justice Partnership, which advocates for “tort reform,” and over $11 million from the Center to Protect Patients’ Rights, another 501(c)(4) organization. The Times will find that AFF-supported candidates win 76 percent of the time, making the group “one of the most effective outside spending groups of the 2010 election cycle.” The law allows 501(c)4 groups (see 2000 - 2005) such as AFF to operate without taxation or legal scrutiny as long as they spend the bulk of their resources on “further[ing] the common good and general welfare of the people of the community” and not political advocacy. Moreover, federal election law provides that if a group’s major purpose is electioneering and it spends at least $1,000 to influence elections, it must register as a political action committee (PAC). A New York Times analysis recently showed that AFF spent 56 percent of its television budget on political advertising, and so far has spent $8.8 million on television ad buys. Its ads attack Democratic candidates in Indiana, Iowa, New Mexico, and West Virginia, and expressly tell voters to cast their ballots against these candidates. And the organization’s Web site says it exists to “target… liberal politicians.” The group says it plans to spend as much as $25 million on the 2010 elections. In a press release, Public Citizen says that AFF, “a conservative nonprofit group pouring money into the 2010 midterm elections, appears to be violating campaign finance law.” The three groups file a complaint with the Federal Election Commission (FEC) asking it to decide whether AFF has violated the tax code. If so, AFF would be forced to re-register as a PAC and be subjected to more disclosure requirements, particular who donates to the organization and how much they donate. Craig Holman of Public Citizen says: “American Future Fund is pulling out the stops to ensure that Republicans are elected this November. That imposes on the group the legal duty to register with the FEC and disclose exactly who is funding all those expenditures.” Protect Our Elections spokesperson Kevin Zeese says: “In this first post-Citizens United (see January 21, 2010) election, corporations and their executives are testing the limits of the law and crossing over into illegality. They cross the line when they use nonprofit groups to urge people to vote ‘for’ or ‘against’ a specific candidate. Political committees violate the law when they accept anonymous contributions for their work. These violations of federal election and tax laws need to be challenged now; otherwise we will see even more anonymous corporate donations trying to illegally manipulate voters into voting against their own interests in future elections.” And Lisa Graves of the Center for Media and Democracy says: “Groups spending millions to attack Americans running for office should not be able to use their tax-free status to hide the truth about which fat cats are behind their ads. Voters have a right to know which corporations or millionaires are laundering their profits through nonprofits like the American Future Fund, whose main business seems to be electioneering. We have joined this complaint to demand that the law be enforced and the truth be told.” [Center for Media and Democracy, Protect Our Elections, and Public Citizen, 10/12/2010 pdf file; Public Citizen, 10/20/2010; Mother Jones, 1/28/2011; iWatch News, 6/21/2012] AFF will continue to operate as a 501(c)4 group in spite of the FEC complaint, and will continue to spend heavily on anti-Democratic ads, many of which will be proven to be false by organizations such as FactCheck (.org). More complaints will be filed against the organization, including a February 2011 IRS complaint by Citizens for Responsibility and Ethics in Washington (CREW). [iWatch News, 6/21/2012]

Entity Tags: Center to Protect Patients’ Rights, Red, White and Blue Fund, Center for Public Integrity, Bruce Rastetter, American Justice Partnership, American Future Fund, Allison Dorr Kleis, Public Citizen, Protect Our Elections, Sandra Greiner, Nick Ryan, Federal Election Commission, Kevin Zeese, Craig Holman, Citizens for Responsibility and Ethics in Washington, Concordia Group, Center for Media and Democracy, Pharmaceutical Research and Manufacturers of America, New York Times, Lisa Graves

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

Campaign spending by outside “independent” organizations on Congressional races currently stands at $147.5 million, a 73 percent rise from two years ago, according to information from the nonpartisan Campaign Finance Institute (CFI). In mid-October 2008, Congressional election spending by outside groups was at $85.3 million. In 2006, that number was $32 million. The spending dramatically favors Republicans, with groups supporting GOP candidates spending $105.5 million and groups supporting Democrats spending $42 million. According to the press, the huge spike in spending is traceable to the Citizens United decision that allows corporations and labor unions to spend unlimited funds in campaign activities (see January 21, 2010). The CFI notes that the record-breaking spending “is before the traditionally heavy-spending final weeks of the campaign.” [McClatchy News, 10/18/2010]

Entity Tags: Campaign Finance Institute

Timeline Tags: Civil Liberties, 2010 Elections

Impelled by polls showing that Democrats may not do as badly as predicted in the upcoming November midterm elections, Republican political organizations pour vast amounts of money into tight Senate and House races in the final days, according to a Reuters analysis of data provided by the Wesleyan Media Project and from Democratic organizers. The controversial Citizens United Supreme Court decision (see January 21, 2010) has “opened the floodgates” for corporate money to be used in electioneering and advertising, much of that money going anonymously to political parties and operations (see September 13-16, 2010 and October 2010). Much of the money is targeting three Senate races in Colorado, Kentucky, and California. Republicans are confident that they will gain control of the House of Representatives, but must gain 10 seats to control the Senate, a prospect that is not as likely. Last-minute spending surges are common in elections, but experts say they have never seen so much spending in the last days of a race. Pollster Andrew Kohut of the Pew Research Center is not sure the last-minute surge of spending, almost all of which is going to advertising, will have a major effect. Most voters’ minds are made up by now, Kohut says. Data shows that organizations affiliated with Republicans have outspent their Democratic rivals by more than a 3-1 ratio. In Nevada, “independent” organizations are pouring money into attack ads against Senator Harry Reid (D-NV) and in support of challenger Sharron Angle (R-NV). Late campaign spending is fairly equal, according to the data, and the polls for that race are very tight. In Colorado, “tea party” favorite Ken Buck (R-CO) is losing ground to incumbent Michael Bennet (D-CO), and in response, Republican groups have funneled money into ads supporting Buck and attacking Bennet to create a 2-1 spending ratio in favor of Buck. A similar instance exists in Kentucky, where another tea party favorite, Rand Paul (R-KY), is losing ground to Jack Conway (D-KY), and Republican spending on Paul’s behalf has made for a 2-1 spending ratio in favor of Paul. In California, where popular Democrat Barbara Boxer (D-CA) once had a 2-1 spending advantage over her opponent Carly Fiorina (R-CA), pro-Fiorina groups have recently outspent pro-Boxer groups 5-1. In Pennsylvania, pro-Republican groups are heavily outspending Democrats, largely to support Republican favorite Pat Toomey (R-PA) over Joe Sestak (D-PA). In Delaware, Senate candidate Christine O’Donnell (R-DE), whose campaign has raised large amounts of money from out-of-state financiers, has not received the lavish funding that her Republican colleagues have gotten to defeat her opponent Chris Coons (D-DE). O’Donnell has received some $300,000 from right-wing and tea party groups. But Coons is receiving virtually no support from independent pro-Democratic groups, possibly because polls indicate he will win the election and does not need the last-minute funding support. The elections will be held on November 2. [Reuters, 10/27/2010] The results of the massive spending are mixed. The Republican winners include Paul and Toomey. The Republican losers include Angle, Buck, Fiorina and O’Donnell. [National Public Radio, 11/3/2010]

Entity Tags: Christine O’Donnell, Chris Coons, Wesleyan Media Project, Barbara Boxer, Andrew Kohut, Sharron Angle, Reuters, US House of Representatives, Carly Fiorina, Joe Sestak, Jack Conway, Harry Reid, Rand Paul, Pat Toomey, Ken Buck, Michael Bennet

Timeline Tags: Civil Liberties

Mark Meckler and Jenny Beth Martin aboard ‘Patriot One.’Mark Meckler and Jenny Beth Martin aboard ‘Patriot One.’ [Source: Tea Party Patriots / Mother Jones]Some tea party activists question recent trips flown by Tea Party Patriots (TPP) officials Mark Meckler and Jenny Beth Martin. The use of a luxury passenger jet (dubbed “Patriot One” by Meckler and Martin) has been provided by a wealthy donor whom Meckler and Martin refuse to identify. Meckler and Martin are flown in the jet to tea party and TPP events around the nation, telling the assembled event-goers that they are “flying for freedom” and “landing for liberty.” The two officials are accompanied by, among others, an Atlanta filmmaker who documents the trips and posts videos on the TPP’s Web site. Reporter Stephanie Mencimer says the videos “show the tea party leaders traveling in the style of Wall Street investment bankers… hardly a humble display of the usual tea party thrifty pluck.” Georgia tea party member William Temple writes an angry column for the conservative news site the Daily Caller demanding accountability from Meckler and Martin, in which he states: “So what is with Tea Party Patriot’s junket ‘round the nation? Have Tea Party contributions been so forthcoming that they are financing this massive airlift campaign in the skies from sea to shinning [sic] sea, culminating on the west lawn of the nation’s Capitol on November 2? And it is a massive airlift of Pelosi proportions! [Temple is referring to Democratic House Speaker Nancy Pelosi.] More than 30 flights: starting in Green Bay, Wisconsin, on October 21, with two to four flights daily, while accompanied by a ‘gotcha’ film crew to document Jenny Beth and Mark Meckler’s every arrival and departure with on-the-spot interviews as they hob nob with Tea Party Patriot local organizers.… The films are then shamelessly posted on the Tea Party Patriots Web site, and emailed nationally (using their national bank of emails), always with the proverbial admonition reminding the brain-dead that the tea parties are for ‘fiscal responsibility, constitutionally-limited government, and free markets.’ (Huzzah for fiscal responsibility!)” Mencimer and the publication she writes for, liberal magazine Mother Jones, use publicly available information to determine that the owner of “Patriot One” is Republican financier Raymon F. Thompson, a former CEO of the semiconductor company Semitool. Thompson recently sold his interest in Semitool for $364 million. The airplane is a 1982 Dassault Falcon 10, a French-made aircraft similar to a Learjet, that seats four to eight people. The Falcon 10 is registered to Eagle III, a private company in Kalispell, Montana, an area featuring a number of tea party groups as well as armed militia activities. Eagle III is owned by Thompson, who owns a diner in Kalispell. The Falcon 10 was formerly leased by Semitool through Eagle III—in essence, Semitool was leasing it from its CEO. Thompson and his wife have been major GOP donors for at least 15 years, donating over $130,000 to an array of Republican candidates, including militia member and neo-Confederate Derek Skees, currently running for a seat in the Montana House of Representatives. Thompson is also a heavy contributor to the Heritage Foundation, which features TPP board member and former Republican Congressman Ernest Istook as a “distinguished fellow.” Thompson recently hosted a fundraiser for Senator John Thune (R-SD). Meckler has complained that a rival tea party “umbrella” organization, the Tea Party Express, is not a real grassroots organization as he claims his TPP is, saying: “They try to portray themselves as some sort of grass-roots movement, but they are a classic example of what those on the left would call Astroturf. They are fake, they’re not from the grassroots. These are longtime Republican political activists with their own agenda.” Mencimer speculates that a recent anonymous $1 million donation to the TPP which has gone largely untracked (see September 21 - November 1, 2010) may have come from Thompson. [Daily Caller, 10/26/2010; Mother Jones, 10/28/2010]

Entity Tags: Raymon F. Thompson, Derek Skees, Eagle III, Mark Meckler, Stephanie Mencimer, William Temple, Semitool, Jenny Beth Martin, Tea Party Patriots

Timeline Tags: Civil Liberties

Protesters in Los Angeles demonstrate against Proposition 23 outside a Tesoro refinery in Wilmington, California.Protesters in Los Angeles demonstrate against Proposition 23 outside a Tesoro refinery in Wilmington, California. [Source: Los Angeles Times]The liberal news Web site AlterNet shows that a very small number of wealthy, influential donors are driving campaign efforts to pass Proposition 23, a California ballot initiative that would suspend state legislation designed to help reduce carbon emissions and hold polluters accountable. The legislation, AB 32, is already in effect, and requires California to decrease global warming emissions to 1990 levels by 2020, beginning in 2012. Prop 23, as it is called, would suspend AB 32 until the state’s unemployment rate drops below 5.5 percent for four consecutive quarters. Currently unemployment in California is around 12 percent. AlterNet provides data showing that AB 32 will actually create jobs developing “clean” technologies and energies, an industry sometimes called “green tech.” Venture capitalist Vinod Khosla recently said: “AB 32 created markets. Prop. 23 will kill the market and the single largest source of job growth in California in the last two years.” The funding for the advertising and other political activities pushing Prop 23 comes from two primary sources: Texas oil giant Valero Energy Corporation and Tesoro Corporation. Both companies have refineries in California that make them two of the state’s biggest polluters. The two oil companies are aided by large donations from the Koch brothers, who own oil conglomerate Koch Industries (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, and September 24, 2010). Valero has spent $5 million to bolster Prop 23 and Tesoro has spent $2 million. Flint Hill Resources, a Koch Industries subsidiary, has spent $1 million. Marathon Petroleum has spent $500,000, as has the conservative Adam Smith Foundation of Missouri. Occidental Petroleum has spent $300,000; Tower Energy Group, $200,000; CVR Energy, $150,000; and about $100,000 each has been spent by the Howard Jarvis Taxpayers Association, the National Petrochemical and Refiners Association, and World Oil Corporation. Of the $10.6 million raised so far to push Proposition 23, only 30 percent of it comes from inside California. In contrast, opponents to Proposition 23 have raised $30.6 million to defeat it, with 70 percent of that money coming from inside California. Jorge Madrid of Climate Progress recently warned: “If we allow Prop 23 to succeed, big oil refineries in the state could continue to spew greenhouse gases without strict regulation. Even worse, a victory for big oil in California could mean certain death for greenhouse gas regulation for the rest of the nation.” [AlterNet, 10/30/2010; Los Angeles Times, 11/2/2010] Prop 23 will lose by a 61-39 margin, with analysts noting that the anti-proposition forces gained ground by pointing out the support for the proposition coming primarily from Texas oil interests. Even many of California’s largest oil companies either stayed neutral or opposed the initiative. The anti-proposition forces were fueled primarily by financiers such as San Francisco hedge fund manager Tom Steyer, the National Wildlife Federation and the ClimateWorks Foundation, and green-tech moguls such as Khosla and John Doerr. Governor Arnold Schwarzenegger (R-CA) stumped in opposition to the initiative, attacking the “self-serving greed” of Valero and Tesoro. The Environmental Defense Fund’s Fred Krupp says of the defeat: “It is the largest public referendum in history on climate and clean energy policy. Almost 10 million Californians got a chance to vote and sent a clear message that they want a clean energy future. And this was in an economic downturn. There has never been anything this big. It is going to send a signal to other parts of the country and beyond.” [Los Angeles Times, 11/2/2010]

Entity Tags: Fred Krupp, David Koch, World Oil Corporation, Charles Koch, CVR Energy, Arnold Schwarzenegger, Valero Energy Corporation, Adam Smith Foundation, AlterNet (.org), Tower Energy Group, Vinod Khosla, Tesoro Corporation, Marathon Petroleum, National Petrochemical and Refiners Association, Koch Industries, Howard Jarvis Taxpayers Association, Jorge Madrid, National Wildlife Federation, Proposition 23 (California), ClimateWorks Foundation, Tom Steyer, Occidental Petroleum

Timeline Tags: Civil Liberties

In an interview with PBS’s Judy Woodruff, Haley Barbour, the chairman of the Republican Governors Association (RGA), falsely claims that Democrats are outspending Republicans in the midterm election campaigns. The elections are tomorrow, November 2. Barbour agrees with projections that Republicans will do very well in tomorrow’s elections, probably taking back control of the US House and perhaps the US Senate as well. Barbour predicts a stronger sweep than the 1994 elections, which put Republicans in control of both houses of Congress, motivated by Americans’ “anger and even fear” at what he calls “the lurch to the left given us by [Democratic House Speaker Nancy] Pelosi and [President Barack] Obama.” Barbour goes on to claim that one difference between 1994 and 2010 is that “this year, we got outspent pretty heavily. The labor unions saw this coming early, and they have poured money in to try to save Democrat seats. And it hasn’t been any secret to the news media or the Democratic incumbents that this was going to be a hard year for them because the president’s policies are unpopular.” Woodruff does not challenge Barbour’s claims. [PBS, 11/1/2010] In reality, Republican and Republican-supporting organizations have outspent Democrats and their supporters by a 3-1 ratio (see September 13-16, 2010, October 2010, and Around October 27, 2010). Data from the nonpartisan Center for Responsive Politics shows that while the Democratic Party does outspend the Republican Party in the 2010 elections, pro-GOP outside groups have vastly outspent labor unions and other organizations supporting Democrats. The four biggest outside groups spending money on the elections—the US Chamber of Commerce, the American Action Network (see Mid-October 2010), American Crossroads, and Crossroads GPS—all spend their money on behalf of Republicans. Together those four groups spend $99.6 million, far more than the $28.1 million spent on behalf of Democrats by the two largest labor unions. American Crossroads and Crossroads GPS intend to continue spending money to attack Obama and the Democrats even after the election. “It’s a bigger prize in 2012, and that’s changing the White House,” says American Crossroads chairman Robert Duncan. “We’ve planted the flag for permanence, and we believe that we will play a major role for 2012.” American Crossroads and other such groups, on both Republican and Democratic sides, intend to continue fundraising in the wake of the midterm elections and begin campaigning almost immediately for the 2012 presidential elections. Privately, some Democratic strategists say they are not sure how they will answer the challenge posed by Republican-supporting “independent” groups and the huge amounts of cash they raise from wealthy corporate donors. Obama’s senior political advisor David Axelrod says that special interests “have driven a huge truck filled with undisclosed cash through a legal loophole to try and buy this election… is it any surprise that this same, stealthy crowd will try to move on to the White House next? Whatever the outcome Tuesday, this issue is not going away.” [New York Times, 10/31/2010; Washington Independent, 11/1/2010; Think Progress, 11/2/2010]

Entity Tags: David Axelrod, American Crossroads, American Action Network, Center for Responsive Politics, US Chamber of Commerce, Robert Duncan, Democratic Party, Haley Barbour, American Crossroads GPS, Republican Party, Judy Woodruff

Timeline Tags: Civil Liberties

A group of Democratic donors, shaken from the defeat the party suffered in the November midterm elections, meets in a Washington hotel to discuss how to counter the huge influx of corporate spending that helped defeat dozens of Democrats and give control of the US House of Representatives back to Republicans. Outside conservative groups such as the US Chamber of Commerce, the American Action Network (see Mid-October 2010), and American Crossroads/Crossroads GPS outspent Democratic groups by more than a two to one ratio. The donors are split on whether to try to emulate their opponents by raising as much money as possible from wealthy corporations and donors, or continuing down their traditional path of funding their campaign efforts via labor unions and organizations such as the Sierra Club. If they decide to pursue corporate cash, some argue, they will be viewed as hypocrites in light of Democrats’ almost-uniform opposition to the 2010 Citizens United decision, which “opened the floodgates” for unlimited corporate and labor donations (see January 21, 2010). One of the fundamental problems, Democrats note, is that while unions are allowed to contribute unlimited funds just as corporations do, unions, which traditionally support Democrats, are far less wealthy than their corporate counterparts. And despite record-breaking fundraising by the Obama presidential campaign in 2008, most corporations donate to Republicans. The donors are not expected to come up with simple answers as they begin to strategize for 2012, where Republicans are expected to raise and spend an unprecedented half-billion dollars trying to defeat President Obama. Moreover, the White House has sent decidedly mixed messages on the subject. During the 2008 race, the Obama campaign instructed an independent progressive “527” PAC, the Fund for America, to shut down its operations after it began releasing attack ads against Obama’s opponent, Senator John McCain (R-AZ). The Obama campaign did not want independent organizations conducting their own operations, but wanted full control of the campaign message. And campaign leaders said they wanted to win with small individual contributions from ordinary citizens, not with massive corporate donations. The White House’s opposition to such outside funding continued through 2010, and as a result, corporate donations to Democratic-supporting groups were far outstripped by Republican donations. Since then, Obama’s top political advisor David Axelrod has indicated the White House would support liberal donors’ independent efforts to counter Republican political donations, but many Democratic donors still believe the Obama administration is not fully behind those efforts. A Democratic strategist who refuses to be identified says: “By and large, the political people in the Obama firmament really have disdain for outside groups. They think they whine and snivel and make all these demands and don’t produce very much.” Some liberal donors and organizations are ignoring the resistance from the White House and making their own plans, such as David Brock, the founder of Media Matters for America (MMFA), who is considering forming his own 527 (see 2000 - 2005) for 2012. Another Democratic activist, Joan Fitz-Gerald of the umbrella group America Votes, says Democrats cannot depend on the courts or Congress to rein in corporate spending, noting that Congressional Democrats failed to get the DISCLOSE Act, a campaign finance reform measure, to the floor of the Senate for a vote (see July 26-27, 2010). Fitz-Gerald says Democrats must adapt to the new political landscape or risk another trouncing in 2012. However, she recommends working through existing progressive organizations more than using hastily formed PACs and 527s funded by one or two wealthy sources. Unions and environmental groups have large, citizen-based funding sources, whereas Republican organizations are often funded by a small group of wealthy donors who bankroll numerous such organizations. Those organizations, she says, lack credibility with voters. The traditional grassroots-based organizations, she says, “are trusted messengers, whether they’re a union that someone belongs to or a group that people have been a member of for many years. At some point the American people, as they see these ads pushing this right-wing agenda, they’re going to ask: ‘Who are these people? What’s the goal of American Crossroads?’” But the funding garnered by the right made the difference in the 2010 elections, Democratic donors agree. Mike Palamuso of the League of Conservation Voters recalls, “For every $500,000 we spent, it felt like American Crossroads spent another $5 million.” Many agree with Democratic political strategist Harold Ickes, who says: “Is small money better? You bet. But we’re in a f_cking fight. And if you’re in a fistfight, then you’re in a fistfight, and you use all legal means available.” [Mother Jones, 11/15/2010]

Entity Tags: David Brock, American Action Network, America Votes, American Crossroads, David Axelrod, US House of Representatives, Sierra Club, Harold Ickes, Joan Fitz-Gerald, US Chamber of Commerce, American Crossroads GPS, Mike Palamuso, Obama administration

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

House Republicans rush a bill to the floor for a vote to eliminate all public funding of the presidential election. The bill, if passed by the Senate and signed into law by President Obama, would eliminate one of the few remaining public funding methodologies for federal elections, and, critics say, give wealthy corporate and individual donors even more influence over elections. Public financing of presidential elections was made law by the 1971 Federal Election Campaign Act (FECA—see February 7, 1972 and 1974) and upheld by the Supreme Court (see January 30, 1976). The bill comes to a vote almost exactly a year after the Supreme Court allowed corporations and labor unions to make unlimited donations to political organizations (see January 21, 2010). The bill, HR 359, was sponsored by Representative Tom Cole (R-OK) in June 2009 and cosponsored by 17 other House members, all Republicans. It would eliminate the Presidential Election Campaign Fund and the Presidential Primary Matching Payment Account. The Republican House leadership did not hold hearings on the bill, nor allow it to be debated in committee. Representative Chris Van Hollen (D-MD) calls the bill “a sneak attack on the system,” and notes that the Republicans had pledged to observe “transparency and openness,” but instead are pushing through such a transformative bill without allowing debate. The bill passes the House on a 239-160 vote, with the Republican majority overriding the Democratic minority. Ten Democrats vote for the bill and one Republican votes against it. Senate Minority Leader Mitch McConnell (R-KY) has already introduced his version of the bill in the Senate, though Senate Democrats say the bill has no chance of passing; Senate Majority Leader Harry Reid says through a spokesperson that the bill will never be brought up for a vote. [Mother Jones, 1/24/2011; Raw Story, 1/25/2011; CNN, 1/26/2011; National Public Radio, 1/27/2011; Bloomberg, 1/27/2011]
Repair or Eliminate? - Presidential candidates who accept public funding must agree not to accept private donations in the fall campaign. Every presidential candidate from 1976 to 2008 has accepted public funding. In 2000, George W. Bush (R-TX) did not take public financing for his primary campaign, and in subsequent years no presidential nominee has taken such funding. In 2008, Barack Obama (D-IL) declined to take public financing for his general election, the first presidential nominee to do so. Republicans claim the elimination of the public funding program would save the government between $520 and $617 million over the next 10 years. Meredith McGehee, policy director at the Campaign Legal Center, says the public financing system needs to be updated. It was created in 1976, she notes, and does not reflect the needs of 21st-century candidates. Lawmakers from both parties have attempted, without success to introduce legislation to update the system. McConnell says that Americans do not believe in the PECF, citing declining public participation. The program is funded by a $3 check-off on individual tax returns; in 1980, almost 29 percent of tax returns carried the check-off, while in 2007 only 8.3 percent of tax returns checked off the donation. “In a time of exploding deficits and record debt, the last thing the American people want right now is to provide what amounts to welfare for politicians,” McConnell says. House Democrats have introduced legislation that would modify and update the PECF instead of end it. One of that legislation’s sponsors, David Price (D-NC), says, “Dare we forget what Watergate was all about?” (Price is referring to the post-Watergate origins of the PECF.) “President Nixon’s Committee to Re-Elect the President, fueled by huge quantities of corporate cash, paid for criminal acts and otherwise subverted the American electoral system. Let’s not return to the darkest days of our democracy.” [Mother Jones, 1/24/2011; CNN, 1/26/2011; National Public Radio, 1/27/2011; Bloomberg, 1/27/2011]
Obama Administration Opposes Bill - The Obama administration strongly opposes the bill, saying that the public financing system should be improved rather than eliminated. In a statement, the White House says: “The presidential election public financing system was enacted in the aftermath of the Watergate scandal to free the nation’s elections from the influence of corporations and other wealthy special interests. Rather than candidates having to rely on raising large sums of private money in order to run, the system provides qualifying presidential candidates with the option of accepting matching funds in the primary and a public grant in the general election.… H.R. 359 would kill the system, not strengthen it. Its effect would be to expand the power of corporations and special interests in the nation’s elections; to force many candidates into an endless cycle of fundraising at the expense of engagement with voters on the issues; and to place a premium on access to large donor or special interest support, narrowing the field of otherwise worthy candidates.” [Raw Story, 1/25/2011]
Divided Response from Lawmakers - Representative Eric Cantor (R-VA) says after the bill passes that voting it into effect “should be a no-brainer.” House Minority Leader Nancy Pelosi (D-CA) says that Congress “should come together to ensure that the American people are heard, that they are heard and that they are not drowned out by special interest dollars.” Republicans such as Aaron Schock (R-IL) call Democrats and the Obama administration “hypocrites” because in 2008, Obama turned down public financing. Schock says, “It was President Obama who killed it and made a mockery of public financing of president campaigns with his arrogant pressing of self advantage.” David Price (D-NC) makes an angry rejoinder, saying: “Talk about having it both ways. [Schock] comes onto this floor to condemn President Obama for opting out of the system, and then he proposes to abolish the system so that everybody has to opt out.” Cole also condemns Obama for not taking public financing in 2008, and says he believes public financing of elections should be illegal, but goes on to say that he supports Republicans who take public financing because it is a legal option. Lynn Woolsey (D-CA) says: “Special interest money is having a corrosive effect on our democracy, eating away at the people’s confidence in their government and their elected representatives. The one beacon of light in this system is the public financing of presidential campaigns. It is, I would remind everyone, a voluntary system.” “This is an attempt to finish the job that the Supreme Court started with the Citizens United decision,” says Senator Charles Schumer (D-NY). Schumer chairs the Senate Rules Committee, which has jurisdiction over campaign finance legislation. “It would bust one of the last dams protecting our election system from an uncontrolled flood of special-interest money.” [CNN, 1/26/2011; National Public Radio, 1/27/2011; Bloomberg, 1/27/2011]
Campaign Finance Reform Advocates Critical of Bill - David Arkush of the citizens advocacy group Public Citizen says in a statement, “A vote for HR 359 is a great way to tell the American people that you want to give corporations more power over our government rather than make democracy work for ordinary Americans.” Craig Holman of Public Citizen says of the bill: “Make no mistake about it: The Republican leadership’s legislation to eliminate public financing is an attack not just on the presidential public financing system, but also an attack on congressional public financing proposals. To ensure that the public’s voice can be heard against the corporate onslaught, we need to expand public financing of elections, not kill it.” Campaign finance reform advocate Fred Wertheimer of Democracy 21 calls the bill “a gross abuse of the legislative process.” [Mother Jones, 1/24/2011; Raw Story, 1/25/2011] The nonpartisan Public Finance Action Fund, which advocates for public financing of state and federal elections, says in a statement: “These efforts are not about saving taxpayer money, they are about giving corporate donors even more access than they enjoy today. We hope these measures don’t advance any further.” [CNN, 1/26/2011]
Bill Dies in Senate - The bill will, as expected, not pass the Senate, which is under Democratic control. A similar bill will be introduced in December 2011 (see December 1, 2011), again pass the House, and die in the Senate. [Real Clear Politics, 12/1/2011]

Entity Tags: David E. Price, US Senate, US House of Representatives, Craig Holman, Aaron Schock, Barack Obama, Chris Van Hollen, David Arkush, Charles Schumer, Thomas Jeffery Cole, Public Finance Action Fund, US Supreme Court, Presidential Election Campaign Fund, Presidential Primary Matching Payment Account, Federal Election Campaign Act of 1972, Eric Cantor, Fred Wertheimer, George W. Bush, Harry Reid, Mitch McConnell, Lynn Woolsey, Obama administration, Meredith McGehee, Nancy Pelosi

Timeline Tags: Civil Liberties

The progressive magazine Mother Jones reports on Congressional Democrats’ plans to curb the effects of the Supreme Court’s Citizen United decision, which allows unlimited contributions to campaign organizations by corporate and union donors (see January 21, 2010). Last year, Senate Republicans refused to allow a campaign finance reform bill, the DISCLOSE Act, to come to the floor for a vote (see July 26-27, 2010). Now Democratic leaders say they are considering filing challenges to the nonprofit tax statuses of many of the groups that were so influential in the 2010 elections. Representative Chris Van Hollen (D-MD) tells a Mother Jones reporter about the plan. According to Van Hollen, two of the groups they plan to target are Karl Rove’s Crossroads GPS and the American Action Network (AAN—see Mid-October 2010), headed by former Senator Norm Coleman (R-MN). Together, the two groups spent over $43 million supporting conservative candidates and targeting Democrats, accounting for some 23 percent of all outside conservative spending between them. According to Van Hollen, “People are looking at different legal strategies through the courts because there’s emerging evidence that these groups have abused the rules.” Representative David Price (D-NC) agrees. “I think there are ample goals for challenging the way those groups have acted,” he says. Crossroads GPS spokesperson Jonathan Collegio says in return, “Van Hollen is irresponsibly making claims on zero evidence whatsoever and this is extremely irresponsible for an elected official holding high office.” No one from AAN is willing to respond to the Mother Jones reporting. Both Crossroads GPS and AAN, like many other such groups, are organized under the IRS’s 501(c)4 tax status—tax-exempt, not-for-profit groups whose purpose under the IRS code is “primarily to further the common good and general welfare of the people of the community” (see 2000 - 2005). The law allows such groups to engage in political advocacy, such as running ads for or against candidates, but such “electioneering” activities must not be those groups’ “primary activity.” As far as is known, Crossroads GPS and AAN have no other purpose except electioneering. 501(c) groups do not have to register as political action committees (PACs) and are allowed to conduct their business with very little outside scrutiny. However, if the Federal Election Commission or the IRS determine a group has violated the rules, that group would be forced to register as a PAC and disclose the sources of its funding. If the Democrats challenge the status of these groups, they would be following in the footsteps of private organizations. A coalition of public advocacy groups has filed complaints against Crossroads GPS and another 501(c)4 group, American Future Fund (AFF—see October 12, 2010), claiming that their primary functions are, according to the Crossroads GPS complaint, to “influence the 2010 federal elections and to elect Republicans to office.” The complaints are still pending. In September 2010, Senator Max Baucus (D-MT) asked the IRS to examine several 501(c) groups to “ensure that political campaign activity” wasn’t their primary activity (see September 28, 2010). [Mother Jones, 1/28/2011]

Entity Tags: David E. Price, American Crossroads GPS, American Action Network, American Future Fund, DISCLOSE Act of 2010, Max Baucus, Norm Coleman, Jonathan Collegio, Karl C. Rove, Chris Van Hollen, Mother Jones, US Congress

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

A lawsuit by two anonymous plaintiffs is filed challenging the foreign-contribution provision of the campaign finance laws, a provision that was not overturned by the Citizens United Supreme Court decision (see January 21, 2010). The lawsuit is on behalf of a Canadian citizen who claims he wants to support President Obama’s 2012 re-election campaign, and a dual Israeli-Canadian citizen who wants to contribute to Obama’s opponent Mitt Romney and to the campaign of Senator Tom Coburn (R-OK). The Israeli-Canadian citizen says they want to help prevent what they call a “government-takeover of the health care system in the United States,” according to the suit. The filing says both plaintiffs are legally authorized to live and work in the United States, but are not permanent residents; one is a young attorney with a moderately successful practice and the other earns a modest salary as a medical resident at a New York hospital. The lawsuit asks that legal residents, as well as citizens and US-registered entities, be allowed to make donations. While the lawsuit appears to be bipartisan in nature, the lawyers representing the anonymous plaintiffs are from a top-flight law firm, Jones Day, which usually represents Republican and wealthy corporate clients. Think Progress’s Ian Millhiser notes that the firm’s clients “include some of the biggest corporate beneficiaries of the Citizens United decision—including Koch Industries and the US Chamber of Commerce.” The lawyers are Warren Postman and Yaakov Roth, both of whom are former Supreme Court clerks and thusly do not come cheap—in 2005, Jones Day charged as much as $370 an hour for services provided by lawyers with similar levels of experience. Millhiser writes: “To be clear, a court decision in favor of Jones Day’s clients would not necessarily allow BP or the Dubai Sovereign Wealth Fund to immediately start buying US elections. The lawsuit only asks the court to allow lawful residents make campaign contributions. Nevertheless, such a decision would be a significant crack in the wall protecting American democracy from foreign money. There are any number of foreign corporations who would love to see that happen.” [Politico, 3/18/2011; Think Progress, 3/18/2011] The court will deny the lawsuit (see August 8, 2011).

Entity Tags: Warren Postman, Ian Millhiser, Barack Obama, Jones Day, Willard Mitt Romney, Tom Coburn, Yaakov Roth, US Supreme Court

Timeline Tags: Civil Liberties

Chris Van Hollen, in an undated appearance on Fox News.Chris Van Hollen, in an undated appearance on Fox News. [Source: Associated Press / Politico]Representative Chris Van Hollen (D-MD) and other prominent Democrats file a lawsuit against the Federal Election Commission (FEC) asking that entity to force the disclosure of political campaign donor information. In 2007, after a Supreme Court ruling (see June 25, 2007), the FEC drastically rewrote its disclosure requirements, creating what Van Hollen calls a “major loophole” that many 501(c)4 entities funded by corporate or labor union donations are using to operate “under a veil of anonymity.” Van Hollen and his colleagues say they want to force wealthy corporations and individuals to disclose who they are and how much they donate to political organizations. Currently, the Citizens United decision (see January 21, 2010) allows such donors to remain anonymous, and the organizations that receive their donations to conceal the amounts they are receiving. Van Hollen cites the 2002 Bipartisan Candidate Reform Act (BCRA—see March 27, 2002) as applying in this instance. In the brief he submits for the lawsuit, Van Hollen writes: “The US Chamber of Commerce, a Section 501(c) corporation, spent $32.9 million in electioneering communications in the 2010 Congressional elections, and disclosed none of its contributors; American Action Network (AAN—see Mid-October 2010), a Section 501(c) corporation, spent $20.4 million in electioneering communications in the 2010 Congressional elections, and disclosed none of its contributors; Americans for Job Security, a Section 501(c) corporation, spent $4.6 million in electioneering communication in the 2010 Congressional elections, and disclosed none of its contributors.” The lawsuit comes almost simultaneously with news that the White House is considering issuing an executive order that would require federal contractors to reveal their donations (see April 20, 2011). Democrats admit that even as they push the lawsuit forward, and President Obama publicly criticizes the practice of secret donations, they, too, are raising undisclosed donations for the various 2012 campaigns. Experts note that in most cases, Democrats’ efforts to raise undisclosed donations are far smaller than efforts by Republicans, and the amounts they are receiving are, so far, much smaller. Fred Wertheimer of Democracy 21, who is leading Van Hollen’s legal team, acknowledges that the lawsuit will not alter campaign finance policy before the 2012 elections, though he says it is possible that the lawsuit could receive a favorable decision and force disclosure while appeals are pending.
Similarities to DISCLOSE Act - Both the lawsuit and the executive order are similar to sections of the DISCLOSE Act, a legislative package drafted by Van Hollen and other Congressional Democrats that was blocked by Senate Republicans from coming to a vote (see July 26-27, 2010). USCOC spokesperson Blair Latoff says the lawsuit and the order comprise a “desperate attempt by the White House and House Democrats to resurrect the corpse of the DISCLOSE Act.” (Law professor Steven D. Schwinn will refute Latoff’s accusation, writing that Van Hollen’s lawsuit in no way seeks to force the DISCLOSE Act into law via the courts.) Like the failed legislation, the lawsuit and the proposed executive order would work to curtail the effects of the Supreme Court’s controversial Citizens United decision, which allows virtually unlimited and anonymous political spending by corporations and other entities. The lawsuit argues that the concealment of donor identities contradicts both the law and the Court’s ruling, citing the following language in the majority ruling: “With the advent of the Internet, prompt disclosure of expenditures can provide shareholders and citizens with the information needed to hold corporations and elected officials accountable.”
Seeks Change in FEC Regulations - The lawsuit specifically challenges an FEC regulation adopted in 2007 that contravened language in the 2002 Bipartisan Campaign Reform Act (see March 27, 2002) that required disclosure of donations of $1,000 or more if the donations were made for the purpose of furthering “electioneering communications.” Another petition filed by Van Hollen’s group asks the FEC to revise a regulation that “improperly allowed nonprofit groups to keep secret the donors” whose funds were being used to pay for so-called independent expenditures in federal elections. [van Hollen, 4/21/2011 pdf file; Los Angeles Times, 4/21/2011; New York Times, 4/21/2011; Steven D. Schwinn, 4/25/2011; Think Progress, 4/27/2011]
'Sign of Weakness' - Bradley A. Smith, a former FEC commissioner and the head of the Center for Competitive Politics, a conservative advocacy group, says of the lawsuit: “This is a sign of weakness by a group that’s afraid they’re going to lose, and lose big. Again and again, you see evidence that their real purpose is to try to shut down their political opposition.” Smith and other conservatives say Democrats want to “chill” free speech. [New York Times, 4/21/2011]
FEC Will Refuse to Consider Accompanying Petition - In December 2011, the FEC will refuse to consider an accompanying petition on a 3-3 vote. [Commission, 12/16/2011; Commission, 12/16/2011] The vote is along partisan lines, with the three Democrats on the commission voting to consider the petition and the three Republicans voting against. The law prohibits the FEC from having a majority of commissioners from either party. [Think Progress, 1/21/2012]
Judge Will Rule in Favor of Plaintiff - In March 2012, a district judge will rule in favor of Van Hollen in the lawsuit (see March 30, 2012).

Entity Tags: Bipartisan Campaign Reform Act of 2002, Americans for Job Security, Barack Obama, American Action Network, Blair Latoff, Bradley A. (“Brad”) Smith, Steven D. Schwinn, US Chamber of Commerce, DISCLOSE Act of 2010, Chris Van Hollen, Fred Wertheimer, Federal Election Commission

Timeline Tags: Civil Liberties

The Tennessee State Legislature approves a bill, SB1915, that allows for direct corporate donations to political candidates. The bill also raises the amount that can be given by contributors by around 40 percent. Corporations will be treated as political action committees (PACs—see 1944 and February 7, 1972). The original bill was sponsored by Senate Speaker Pro Tempore Jamie Woodson (R-Knoxville) and passed by a party-line vote, with Republicans voting for passage and Democrats against. House Democratic Caucus Chairman Mike Turner objected to the bill, saying that foreign-based corporations could also contribute under it; House sponsor Glen Casada (R-College Grove) responds by saying that such corporations would have to have a presence in Tennessee to make such contributions. Turner says after the bill passes: “It’s going to be like an arms race with Democrats and Republicans trying to compete for this corporate cash. I just think it’s wrong. I think it’s un-American. Tennessee will rue the day we’ve done this.” For his part, Casada says the bill will lessen candidate dependence on PACs and provide more money to “educate voters.” He adds, “More money is more free speech.” Woodson says the law follows directly from the controversial Citizens United decision by the US Supreme Court (see January 21, 2010), which allows corporations and labor unions to spend unrestricted amounts of money in support of, or opposition to, federal candidates. Republicans lauded the decision by saying it promoted free speech (see January 21, 2010). The Tennessee State Legislature approved a law similar to the Citizens United decision in 2010. The new bill authorizes corporations to give directly to candidates and political parties. Tennessee has long banned such corporate contributions. [Nashville City Paper, 4/26/2011; Knoxville News-Sentinel, 4/27/2011] Governor Bill Haslam (R-TN) will sign the law into effect. Republicans claim the law will “equalize” contributions, and remove the “advantage” in donations from labor unions enjoyed by Democrats. “This basically would just level the playing field, because unions are allowed to do this by statute now,” says Senator Bill Ketron (R-Murfreesboro). However, in October 2010, reporter Tom Humphrey showed that corporate and PAC donations favored Republicans by as much as a 3-1 margin, an advantage not overcome by union contributions. [Knoxville News-Sentinel, 10/29/2010; Nashville City Paper, 4/26/2011]

Entity Tags: Jamie Woodson, Bill Ketron, Tennessee State Legislature, Tom Humphrey, Glen Casada, William Edward (“Bill”) Haslam, US Supreme Court, Mike Turner

Timeline Tags: Civil Liberties

Long-shot Republican presidential candidate Buddy Roemer (R-LA), a former governor of Louisiana, gives an interview to the liberal news Web site Think Progress in which he blasts the current system of campaign finance. Roemer is campaigning on a promise to reduce the influence of the wealthy on the government, and refuses to accept over $100 in contributions from any one source. He also forces the disclosure of the identities of his donors. After speaking at a tea party rally in New Hampshire, Roemer speaks to Think Progress reporter Lee Fang. Roemer is highly critical of large corporate donors and the trade organizations that represent them, and decries the failure of the DISCLOSE Act to pass Congress (see July 26-27, 2010). “It’s disastrous, it’s dysfunctional, to their shame,” he says. Large corporations such as General Electric using their influence to avoid paying taxes is “what’s wrong with America.” Roemer adds: “Right now, too often the political debate has become about the money and not about the issues. And those who have the money have a vested interest in the results and you never know who they are.… I have full disclosure and I challenge my opponents to do the same.” Fang notes that some of the largest corporate donors and “bundlers” (groups like the US Chamber of Commerce, which “bundle” donations from corporations and individuals and funnel them to political organizations) support Roemer’s fellow Republican candidates, and are the primary reason why the DISCLOSE Act failed to pass. “They lobbied both Democrats and Republicans to kill the bill in the Senate,” Fang says. Roemer says Congress and the campaign financial system are both “dysfunctional,” and adds Democratic-supporting labor unions to the list of organizations that are corrupting politics. “The guys with the bucks want unfettered regulation. They want to run America.… The reason the tax code is four thousand pages long and paid no taxes last year and made five billion dollars? It’s [campaign] checks. That’s whats wrong with the American system. It’s not free anymore. It’s bought.” Roemer says the only way he knows to challenge the system is by example. “You know I’ve got to run against the system,” he says. “It’s corrupt. And the only way I know how to do it… is by example. I’m going to show that a grassroots campaign can capture New Hampshire, South Carolina. I’m going to whip ‘em, on my own terms.” The Republican Party does not support Roemer’s campaign, and is blocking Roemer from participating in primary debates. [Think Progress, 5/4/2011]

Entity Tags: US Chamber of Commerce, Republican Party, Think Progress (.org), Buddy Roemer

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

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