!! History Commons Alert, Exciting News

Context of 'May 15-17, 2012: Columnist Attacks Author for Insider Account of ‘Citizens United’ Decision, Expands Attacks to Law Professor, Retired Supreme Court Justice'

This is a scalable context timeline. It contains events related to the event May 15-17, 2012: Columnist Attacks Author for Insider Account of ‘Citizens United’ Decision, Expands Attacks to Law Professor, Retired Supreme Court Justice. You can narrow or broaden the context of this timeline by adjusting the zoom level. The lower the scale, the more relevant the items on average will be, while the higher the scale, the less relevant the items, on average, will be.

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

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

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

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

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

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

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

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

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

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

A mysterious company that donated $1 million to a political action committee (PAC) favoring presidential candidate Mitt Romney (R-MA) dissolves just months after its formation, leading some to speculate that its only purpose was to make political donations. The company, W Spann LLC, was formed on March 15, 2011 by Boston lawyer Cameron Casey, who specializes in estate tax planning—“wealth transfer strategies”—for “high net worth individuals,” according to corporate records and the lawyer’s biography on her firm’s Web site. Casey filed a “certificate of formation” with the Delaware Secretary of State’s office, but provided no information about the firm. The only address listed was that of a Wilmington, Delaware, registered agent service, Corporation Service Company, which provides such services for many companies. That firm refuses to discuss its clients. Spann’s address was listed as 590 Madison Avenue, New York City, a midtown Manhattan office building, but the building’s management firm, Minskoff Equities, shows no records of any such tenant. On April 28, W Spann LLC donated $1 million to Restore Our Future, a “super PAC” (see 2000 - 2005 and June 30, 2000) aligned with the Romney campaign (see June 23, 2011). Casey dissolves the company today, two weeks before Restore Our Future makes its first campaign filing of the year reporting the donation, by filing a “certificate of cancellation.” Lawrence Noble, the former general counsel of the Federal Election Commission (FEC), says, “I don’t see how you can do this,” when asked about the donation. If the only purpose of Spann’s formation was to contribute to the pro-Romney group, “There is a real issue of it being just a subterfuge” and that could raise a “serious” legal issue, Noble says. At least, “[w]hat you have here is a roadmap for how people can hide their identities” when making political contributions. Casey will refuse to discuss the matter with the press, and her employer, the law firm Ropes & Gray, will say through a spokesman that it cannot comment. (Ropes & Gray has as a longtime client Bain Capital, the firm formerly headed by Romney. The law firm has its offices at 590 Madison.) Restore Our Future campaign treasurer Charles Spies, a former Romney campaign official, will also refuse to answer questions about Spann. He will say, “Restore Our Future has fully complied with, and will continue to comply with, all FEC disclosure requirements.” A Romney campaign official will later add, “Mitt Romney follows both the letter of the law and the spirit of the law in all circumstances.” Bain Capital spokesperson Alex Stanton says of W Spann: “Bain Capital has many employees who actively participate in civic affairs, and they individually support candidates from both parties. The firm takes no position on any candidate, and the entity in question is not affiliated with Bain Capital or any of our employees.” Critics say the Spann story shows how easily disclosure requirements are being avoided in the aftermath of the Citizens United decision (see January 21, 2010). “This is sham disclosure. It’s a barrier to disclosure,” says Michael Malbin of the Campaign Finance Institute. It is another example of how American political campaigns have gone “back to the future” and to the “pre-Watergate days” (of 1972) when Richard Nixon was raising unlimited amounts of money without disclosure, Malbin says. [MSNBC, 8/4/2011]

Entity Tags: Lawrence M. Noble, Bain Capital, Alex Stanton, Cameron Casey, Corporation Service Company, Restore Our Future, W Spann LLC, Michael Malbin, Minskoff Equities, Charles R. Spies, Ropes & Gray, Willard Mitt Romney

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties

A new report by the Brennan Center for Justice shows that just three “independent” corporate political organizations outspent the US labor movement in judicial elections for 2009-10. The report, entitled “The New Politics of Judicial Elections 2009-10,” shows that three corporate interest groups—the Ohio Chamber of Commerce (Partnership for America’s Future), the Business Council of Alabama, and the Illinois Civil Justice League (JustPAC) outspent the US labor movement 13-1 in trying to influence state Supreme Court elections. Together, the three groups spent $3,554,445 on activities involving judicial elections. In total, organized labor groups spent $261,4230. Labor unions have always contended that they could not spend nearly as much on election activities as corporations. [Skaggs et al., 10/2011 pdf file; Think Progress, 10/27/2011]

Entity Tags: Ohio Chamber of Commerce, Illinois Civil Justice League, Brennan Center for Justice, Business Council of Alabama

Timeline Tags: Civil Liberties

’We Are Ohio’ logo.’We Are Ohio’ logo. [Source: ProgressOhio (.org)]Ohio Senate Bill 5, known as the Ohio Collective Bargaining Limit Repeal, is defeated by a voter referendum. The bill would enable severe limitations on collective bargaining for public employees in the state, and make it difficult for those employees to strike and collectively bargain for wages, health insurance, and pensions, and would have increased employee contributions for pensions and health insurance. The hard-fought campaign pitted Governor John Kasich (R-OH) and Ohio Republicans against the state’s teachers, firefighters, police officers, and unions. The bargaining limit repeal was supported by farmers and a number of independent corporate organizations, including Citizens United, the Ohio Chamber of Commerce, and the National Federation of Independent Business; it was opposed by labor unions, Democrats, and some independent organizations, including the bipartisan political action committee We Are Ohio, which helped launch the referendum. Over $50 million was spent on the campaign by outside parties and both political parties. Ohio Democrats and labor leaders call the repeal a win for progressives and worker rights, and the first step in recapturing the state government, which has been dominated by Republicans since the 2010 elections. Doug Stern, a firefighter who joined We Are Ohio, says: “Hey, I’m a Republican, but I’m telling you, Republican firefighters and police officers aren’t going to be voting Republican around here for a while. We’ll see what happens in 2012, but our guys have a long memory. We’re angry and disgusted.” Supporters, relying on large infusions of cash from corporate and other interests, relied largely on media advertising to support the repeal, while opponents staged mass protests and organized grassroots volunteers who they say will continue to work to defeat Republican interests. One $100,000 television ad paid for by Citizens United depicted schoolchildren while a voiceover told viewers that the bill allows schools to “replace” bad teachers, and added, “We parents and educators deserve the right to run our own schools.” Citizens United president David Bossie (see May 1998) told a reporter that his organization “decided to get in and play a role right at the end to educate the voting public and try to persuade them that this is the right way to go.” We Are Ohio called such ads “desperate attempt[s] by another shadowy out-of-state group that refuses to disclose the source of its money” (see January 21, 2010). Kasich repeatedly argued that the harsh measures against public employees and labor unions were necessary to balance the state’s budget. One senior state Republican says that Kasich “snatch[ed] defeat from the jaws of victory” by alienating labor-friendly independents in the state. [Politico, 11/2/2011; Think Progress, 11/3/2011; Politico, 11/8/2011]

Entity Tags: Ohio Chamber of Commerce, David Bossie, Citizens United, Doug Stern, National Federation of Independent Business, Ohio Collective Bargaining Limit Repeal, We Are Ohio, John Kasich

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties, 2012 Elections

Sheldon Adelson at a celebration of the opening of his Sands Cotai Central casino in Macau, April 2012.Sheldon Adelson at a celebration of the opening of his Sands Cotai Central casino in Macau, April 2012. [Source: Aaron Tam / AFP / Getty Images / ProPublica]Casino owner Sheldon Adelson, one of America’s wealthiest individuals, gives $5 million to a super PAC acting on behalf of Republican presidential candidate Newt Gingrich. Adelson’s fortune comes from casinos he owns in Las Vegas and Asia. Adelson has let it be known that he intends to donate much more during the campaign season, both in the primaries and in the general election, when a Republican will challenge President Obama for the presidency. The Washington Post calls Adelson’s donation “the latest in an avalanche of campaign cash flooding the presidential season to independent groups known as super PACs.” Adelson donates the money to Winning Our Future, a super PAC whose predecessor, American Solutions for Winning the Future (ASWF), is plagued with allegations of misconduct and illicit involvement by Gingrich (see December 19, 2011). ASWF was also a benefactor of Adelson’s donations, both monetary and in Adelson’s permission for Gingrich to use his personal aircraft. According to a person close to Adelson, the billionaire is willing to spend at least $5 million more, either on Gingrich or the Republican nominee for president. The source adds that Adelson wants to keep Gingrich competitive in the primary race at least through the January 21 South Carolina primary. If Gingrich does well in South Carolina, as he is predicted to, the source says Gingrich’s super PAC may well receive another hefty donation. In December 2011, Adelson denied saying he planned on donating $20 million to the organization. Adelson and his wife Miriam have known Gingrich since the mid-1990s, when Adelson was locked in disputes with labor unions and government regulators over his construction of the massive Venetian casino in Las Vegas. Like Gingrich, Adelson is extremely conservative on the subject of Israel. Gingrich, buoyed with super PAC donations in recent weeks, did well in the Iowa caucuses (see January 3, 2012) against frontrunner Mitt Romney, whose own super PAC, Restore Our Future, has a stable of wealthy donors keeping pro-Romney and anti-Gingrich ads on the airwaves (see June 23, 2011 and January 3, 2012). Reportedly, Romney’s supporters begged Adelson not to make his contribution to Gingrich, and instead to let Gingrich’s campaign wither without Adelson’s support. Gingrich’s campaign intends to use much of the donation for airtime in South Carolina, and to air portions of a film documenting Romney’s time as CEO of Bain Capital, a private equity firm that oversaw the bankruptcy and dissolution of numerous small businesses and corporations. Gingrich claims Adelson is acting entirely on his own, saying, “If he wants to counterbalance Romney’s millionaires, I have no objection to him counterbalancing Romney’s millionaires.” [Washington Post, 1/7/2012; New York Times, 1/9/2012] Slate columnist Will Oremus observes: “There’s no question that Gingrich has been paid for by Sheldon Adelson. It’s up to voters to decide whether he’s been bought.” [Slate, 1/27/2012]

Entity Tags: Newt Gingrich, Bain Capital, American Solutions for Winning the Future, Miriam Adelson, Winning Our Future, Will Oremus, Restore Our Future, Willard Mitt Romney, Washington Post, Sheldon Adelson, Barack Obama

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties, 2012 Elections

Nevada casino owner and billionaire Sheldon Adelson, who has already given an unprecedented $5 million to a super PAC supporting Republican presidential candidate Newt Gingrich (R-GA—see January 6, 2012), has his wife Miriam donate another $5 million to Gingrich’s super PAC, Winning Our Future. That organization spent over $6 million on “independent expenditures” in the recent South Carolina primary, mostly on attack ads against primary opponent Mitt Romney (R-MA). Winning Our Future outspent all other Republican super PACs involved in that primary, whose expenditures totaled some $5.3 million. The new $5 million contribution will likely go to Gingrich’s campaign efforts in Florida, which is seen as a “must-win” state for Gingrich. Other groups have already spent some $6.4 million in Florida. Think Progress reporter Josh Israel writes: “[T]his contribution will allow the pro-Gingrich super PAC to instantly achieve almost immediate parity.… At this pace, the Adelson family could outspend Gingrich’s competition by themselves.” The Adelson funds come from a joint account; Sheldon Adelson signed the first check and Miriam Adelson signs the second. [Los Angeles Times, 1/23/2012; Think Progress, 1/23/2012]

Entity Tags: Newt Gingrich, Josh Israel, Sheldon Adelson, Miriam Adelson, Winning Our Future

Timeline Tags: Civil Liberties, 2012 Elections

Oxbow Carbon logo.Oxbow Carbon logo. [Source: Mississippi Valley Transit and Transport]The presidential campaign of Mitt Romney (R-MA) has benefited from at least $1.22 million in donations from coal, oil, and gas corporations, which have given their donations to Romney’s “independent” super PAC, Restore Our Future (ROF—see June 23, 2011). ROF has already raised $30 million for Romney’s presidential campaign. It has spent $800,000 on pro-Romney ads and $17 million in ads attacking Romney’s Republican primary challengers. The entirety of ROF’s funds comes from fewer than 800 donors, and 85 percent of those donors have already given the maximum allowed under law—$2,500—to Romney’s campaign itself. Romney’s campaign has raised $500,000 from legitimate, aboveboard donations from oil and gas companies. Those same corporations have given far more to ROF, and are poised to give more. Some of the ROF energy industry donors are:
bullet Coal mining corporations: Oxbow Carbon at $750,000, Oxbow president William Koch at $250,000, and Consol Energy at $150,000.
bullet Oil and gas corporations: Ballard Exploration at $25,000, Bassoe Offshore president Jonathan Fairbanks at $25,000, Murphy Wade of Murphy Oil Corporation at $15,000, and Joseph Grigg of American Energy Operations at $5,000.
Oxbow Carbon’s Bill Koch contributed $250,000 to the Romney campaign; he is the brother of oil billionaires Charles and David Koch of Koch Industries (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). Romney has benefited from the departure of primary challenger Rick Perry (R-TX); with Perry out of the race, Romney has received more money from mining and oil than any other presidential candidate. Think Progress’s Rebecca Leber says that with Romney’s increase in energy industry donations, his positions on energy issues have moved closer to the positions of his corporate supporters. Romney once supported regulations on coal pollution, but now questions whether carbon emissions are even dangerous. He has abandoned his belief in man-made climate change, and has criticized government regulations designed to force industries to produce cleaner energy. [Think Progress, 2/6/2012; Forbes, 9/2012]

Entity Tags: Joseph Grigg, Consol Energy, Ballard Exploration, Jonathan Fairbanks, William I. (“Bill”) Koch, Restore Our Future, James Richard (“Rick”) Perry, Murphy Wade, Rebecca Leber, Mitt Romney presidential campaign (2012), Oxbow Carbon, Willard Mitt Romney

Timeline Tags: Civil Liberties, 2012 Elections

Saul Anuzis, the chair of Michigan’s Republican Party between 2005 and 2009, and a prime contender to chair the Republican National Committee in 2010 (see November 12, 2010), tells a reporter that he is confident the rise of super PACs and the Citizens United Supreme Court decision (see January 21, 2010) will help the Republicans defeat President Obama in November. “Absolutely, there’s no doubt about it,” he says. “Without those financial resources to compete against an incumbent president who has all the resources to raise money, you could never win.” Data shows that Republican super PAC spending has topped Democratic super PAC spending by a ratio of 7.5 to 1. Many of those Republican super PACs are bankrolled by a very small number of billionaires, such as casino magnate Sheldon Adelson (see December 1, 2011, December 19, 2011, January 3, 2012, January 6, 2012, and January 23, 2012), who contributed $11 million in January 2012 to the campaign of Republican presidential candidate Newt Gingrich (R-GA). A relatively small number of wealthy energy interests have also contributed heavily to Republican candidate Mitt Romney (R-MA—see February 6, 2012). [Think Progress, 2/10/2012]

Entity Tags: Saulius (“Saul”) Anuzis, Newt Gingrich, Republican Party, Willard Mitt Romney, Sheldon Adelson

Timeline Tags: Civil Liberties, 2012 Elections

Sheldon Adelson, the owner of casinos in Nevada and Southeast Asia, says he may contribute up to $100 million to the presidential campaign of Newt Gingrich (R-GA). Adelson has already given some $11 million to Gingrich’s campaign, bolstering Gingrich’s otherwise-floundering efforts to become the Republican presidential nominee (see December 19, 2011, January 6, 2012, and January 23, 2012). He mocks the idea that he is trying to personally buy the presidential election for Gingrich, saying of his detractors: “Those people are either jealous or professional critics.… They like to trash other people. It’s unfair that I’ve been treated unfair—but it doesn’t stop me. I might give $10 million or $100 million to Gingrich.” Adelson, one of the world’s richest people, is well able to afford the largesse: according to Forbes magazine, Adelson’s $11 million gift to Gingrich only amounts to 0.044 percent of his fortune. But Adelson says he does not believe in the wealthy trying to influence US politics. “I’m against very wealthy people attempting to or influencing elections,” he says. “But as long as it’s doable I’m going to do it. Because I know that guys like [George] Soros (see January - November 2004) have been doing it for years, if not decades. And they stay below the radar by creating a network of corporations to funnel their money. I have my own philosophy and I’m not ashamed of it. I gave the money because there is no other legal way to do it. I don’t want to go through 10 different corporations to hide my name. I’m proud of what I do and I’m not looking to escape recognition.” Adelson, whose net worth has increased more than any other American’s during the Obama administration, says he wants to see President Obama removed from office for economic reasons. “What scares me is the continuation of the socialist-style economy we’ve been experiencing for almost four years,” he says. “That scares me because the redistribution of wealth is the path to more socialism, and to more of the government controlling people’s lives. What scares me is the lack of accountability that people would prefer to experience, just let the government take care of everything and I’ll go fish or I won’t work, etc.… US domestic politics is very important to me because I see that the things that made this country great are now being relegated into duplicating that which is making other countries less great.… I’m afraid of the trend where more and more people have the tendency to want to be given instead of wanting to give. People are less willing to share. There are fewer philanthropists being grown and there are greater expectations of the government. I believe that people will come to their senses and not extend the current administration’s quest to socialize this country. It won’t be a socialist democracy because it won’t be a democracy.” He refuses to say whether he would support another Republican candidate if Gingrich fails to secure the nomination, though he admits: “The likelihood is that I’m going to be supportive of whoever the candidate is. I just haven’t decided that yet and will wait to see what happens.” Adelson, whose Gingrich donations went mostly for negative ad campaigns against fellow Republican Mitt Romney (see December 19, 2011), adds: “I don’t believe in negative campaigning. I believe in saying that my opponents are very good people and I’m confident a lot of them would do a good job, but I would do a better job, and here’s why. Money is fungible, but you can’t take my money out of the total money you have and use it for negative campaigning.” Adelson denies that his money went towards the negative campaign ads that helped Gingrich win over Romney in South Carolina, saying: “That’s what everybody says, but that doesn’t mean it’s true. Most of what’s been written about me in this is untrue.” [Forbes, 2/21/2012]

Entity Tags: Obama administration, George Soros, Newt Gingrich, Willard Mitt Romney, Sheldon Adelson

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties, 2012 Elections

American Energy Alliance logo.American Energy Alliance logo. [Source: NJI Media]The press learns that a recent $3.6 million television ad campaign attacking President Obama on gasoline prices was funded by the oil billionaires Charles and David Koch (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, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011 and February 14, 2011). The ad campaign was launched by the American Energy Alliance (AEA), the political arm of the Institute for Energy Research. Both organizations are heavily funded by the Koch brothers and their donor network, though information about their finances is sketchy, as the groups do not have to disclose their donor rolls to the public. The two groups are run by Tom Pyle, a former lobbyist for Koch Industries. Pyle regularly attends what news Web site Politico calls “the mega-donor summits organized by the Koch brothers.” Koch-funded organizations intend to spend well over $200 million on behalf of conservative groups before the November elections. The AEA ad claims that the Obama administration is responsible for the recent surge in gasoline prices. Democratic National Committee (DNC) spokesman Brad Woodhouse says that the Koch brothers are “funding yet another shadowy outside group to defend the interests of Big Oil and protect their own tax breaks and profits with [Republican presumptive presidential nominee] Mitt Romney being the ultimate beneficiary.” The DNC and the Obama campaign have targeted the Koch brothers in previous statements, calling them some of the “secretive oil billionaires” funding the Romney campaign. AEA spokesman Benjamin Cole accuses the DNC and the Obama campaign of playing “shadowy” politics intended “to delay, deny, and deceive the American public about the president’s record on energy prices.” The AEA ad is not connected to the Romney campaign, Cole says, and adds that the ad campaign is not intended to benefit Romney, stating, “[W]e have been public and unashamed of criticizing Mitt Romney or any candidate for office, Republican or Democrat, that doesn’t support free market energy solutions.” Cole refuses to confirm that the Koch brothers are financing the ad campaign, instead saying: “People ask if Koch is behind this ad. There is only one person behind this ad and it is President Barack Obama.” The Koch brothers are becoming increasingly involved in the 2012 presidential campaign, sending representatives like Marc Short to network with former Bush advisor Karl Rove, who runs the super PAC American Crossroads and its sibling Crossroads GPS. [Politico, 3/29/2012]

Entity Tags: Karl C. Rove, Barack Obama, American Energy Alliance, Benjamin Cole, Brad Woodhouse, Obama administration, Charles Koch, David Koch, Thomas Pyle, Willard Mitt Romney, Marc Short

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties, 2012 Elections

USA Today, using data provided by the Federal Election Commission (FEC), reports that much of the unprecedentedly high political contributions in the 2012 presidential campaigns comes from anonymous donors. The report also shows that eight out of the top 10 donors give to Republican and/or conservative super PACs. The pattern is similar to that described in earlier reports, such as an August 2011 report that found a dozen wealthy donors made up the majority of super PAC donations, and most of those donors contributed to Republican or conservative organizations (see August 4, 2011), and a February 2012 analysis that found a quarter of the donations flowing into the super PACs came from just five wealthy donors, four of whom are Republican contributors (see February 21, 2012). The latest data shows that eight out of 10 of the top super PAC donors are either individuals or corporations who donate to Republican causes. One of the remaining two donors, the Cooperative of American Physicians, supports a single Democratic candidate and a range of Republicans. The other is a teachers’ union, the National Education Association. The top three donors—casino billionaire Sheldon Adelson and his wife Miriam, Dallas industrialist Harold Simmons and his wife Annette, and Houston real-estate mogul Bob Perry—have between them contributed over $45 million, more than four times the donations coming from the “bottom” six donors. Much of the money collected by nonprofit political advocacy organizations remains undocumented; for example, 80 percent of the donations collected by the Republican-aligned American Crossroads super PAC and its 501(c)4 sister organization Crossroads GPS is from anonymous donors (see April 13-20, 2012). The groups plan on spending at least $300 million during the campaign. FreedomWorks for America, the super PAC arm of the “astroturf” lobbying organization FreedomWorks (see April 14, 2009), garnered about a third of its contributions from anonymous donors who gave to the organization’s nonprofit arm. Law professor and campaign finance expert Richard Hasen says, “We have a dysfunctional system for financing our elections,” when anonymous donations can fund political activity. “It’s bad for our democracy when people refuse to be held accountable.” Russ Walker, the national political director of FreedomWorks for America, says simply, “Everything we are doing is within the law.” [USA Today, 4/22/2012; Think Progress, 4/23/2012]

Entity Tags: Cooperative of American Physicians, USA Today, American Crossroads GPS, American Crossroads, Bobby Jack Perry, Russ Walker, Sheldon Adelson, National Education Association, FreedomWorks for America, FreedomWorks, Federal Election Commission, Richard L. Hasen, Miriam Adelson, Annette Simmons, Harold Simmons

Timeline Tags: Civil Liberties, 2012 Elections

A screenshot from an ad attacking Mitt Romney, sponsored by a super PAC on behalf of Newt Gingrich.A screenshot from an ad attacking Mitt Romney, sponsored by a super PAC on behalf of Newt Gingrich. [Source: Think Progress]The Wesleyan Media Project (WMP), a nonpartisan political analysis group working out of Connecticut’s Wesleyan University, finds that negative political advertising has become the mainstay of political broadcast advertising in the 2012 presidential campaign. Only about 8 percent of ads in the 2008 presidential campaign could be considered negative, the WMP writes, but in 2012, 70 percent of ads are negative. (The WMP defines negative as “mentioning an opponent.”) Erika Franklin Fowler, the WMP’s co-director, says: “One reason the campaign has been so negative is the skyrocketing involvement of interest groups, who have increased their activity by 1,100 percent over four years ago. But we cannot attribute the negativity solely to outside groups. Even the candidates’ own campaigns have taken a dramatic negative turn.” Interest-group advertising, i.e. ads financed by “independent” third-party organizations that support one candidate or another, were 75 percent positive in 2008, but only 14 percent positive in 2012. In 2008, ads financed directly by candidate campaigns were 9 percent negative, but this year are 53 percent negative.
Huge Spike in Third-Party Advertising from 2008 - Almost two-thirds of the ads aired in 2012 are paid for by “third party” organizations such as super PACs and “nonprofit” groups. Super PACs alone have financed 60 percent of the ads during this cycle; that figure for 2008 was 8 percent. The WMP writes: “An estimated $112M [million] has been spent to date on 207,000 ads compared to $190M spent on just under 300,000 ads in 2008. Much of this decline in spending and ad volume is due to the lack of a nomination contest on the Democratic side this year.” The project refers to the Republican presidential primary, which is featuring massive spending on behalf of candidates by third-party organizations. “Such levels of outside group involvement in a presidential primary campaign are unprecedented,” according to co-director Travis Ridout. “This is truly historic. To see 60 percent of all ads in the race to-date sponsored by non-candidates is eye-popping.” One of the most prominent organizations, the nonprofit Crossroads GPS (see April 13-20, 2012), has already aired some 17,000 ads, mostly attacking President Obama. Those ads are joined by commercials paid for by another conservative advocacy group, Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), which has aired some 7,000 ads. The Obama campaign and the Democratic National Committee (DNC) have combined to air some 20,342 ads. WMP data shows that 33,420 anti-Obama, pro-Republican spots have aired as opposed to 25,516 anti-Republican, pro-Obama ads.
Most Ads Paid for by Anonymous Donations - Unlike the majority of the ads that aired in the primary election, most of the ads airing for the general election have “come from groups that do not need to disclose their donors,” according to WMP co-founder Michael M. Franz. “That’s a lot of money and airtime backed by undisclosed sources.” Republican presidential candidates Newt Gingrich (R-GA), Jon Huntsman (R-UT), Mitt Romney (R-MA), and Rick Santorum (R-PA) were very reliant on super PAC advertising, with Ron Paul (R-TX) less so. About 20 percent of ads aired on Obama’s behalf have come from his super PAC, Priorities USA Action, though the DNC has aired a number of ads on behalf of Obama. Priorities USA Action is answering negative ads from Crossroads GPS with its own advertising, mainly in “battleground” states such as Iowa, North Carolina, Ohio, Colorado, Florida, Virginia, and Nevada. Ridout says: “Early general election spending reveals that both parties are focused on markets in the same key battleground states. The past couple of weeks, Obama and his super PAC have been on the air in a few more markets than Crossroads GPS, but both sides have focused their advertising in markets in Nevada, Colorado, Florida, Virginia, Iowa, and Ohio.” Groups such as the conservative Club for Growth, the American Action Network (AAN—see Mid-October 2010), and AFP are airing ads in Senate races in Florida, Indiana, and Nebraska. And some $6 million in advertising has flooded Wisconsin and its gubernatorial recall election involving Governor Scott Walker (R-WI). Walker and the super PAC supporting him, Right Direction Wisconsin PAC (an arm of the Republican Governors’ Association), have outspent their Democratic opponents; of the 17,000 ads aired in Wisconsin about the recall election, 10,000 have either been pro-Walker or negative ads attacking the recall and Walker’s challengers. Franz says: “Wisconsinites have been inundated with advertising surrounding the gubernatorial recall election. Walker and his allies hold a substantial advantage to date in the air war in all markets except Madison, and the incumbent governor’s ads have been more positive than his competitors’ ads.” The liberal news Web site Think Progress notes that the 2010 Citizens United decision is largely responsible for the increased spending by third-party groups (see January 21, 2010). [Wesleyan Media Project, 5/2/2012; Think Progress, 5/3/2012]

Entity Tags: Club for Growth, Americans for Prosperity, Travis Ridout, Wesleyan Media Project, Willard Mitt Romney, American Action Network, 2012 Obama presidential election campaign, Scott Kevin Walker, Ron Paul, Think Progress (.org), Rick Santorum, Jon Huntsman, Erika Franklin Fowler, Democratic National Committee, American Crossroads GPS, Right Direction Wisconsin PAC, Mitt Romney presidential campaign (2012), Michael M. Franz, Priorities USA Action, Newt Gingrich

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

Columnist Adam White, writing for the conservative Weekly Standard, lambasts a recent article by the New Yorker’s Jeffrey Toobin about the internal decision-making process behind the 2010 Citizens United decision (see January 21, 2010 and May 14, 2012). Most publications describe the decision as allowing corporations and labor unions to spend money freely in campaigns, but White defines it differently, calling it an affirmation of “a corporation’s First Amendment right to spend money on independent speech on political issues, even when that speech criticizes candidates for office” (see January 21, 2010, January 22, 2010, and February 2, 2010). Law professors Tom Goldstein and Jonathan Adler have found some “spin” in Toobin’s account of events (see May 14, 2012), and law professor Richard Hasen has asked that a draft dissent highly critical of the decision and its methodology be made public to shed light on Toobin’s narrative (see May 14-16, 2012). However, White goes significantly further than any of the professors in tarring Toobin’s article, and in some instances Toobin himself. White writes flatly that everyone outside of “Toobin’s base,” presumably meaning liberals who comprise “Chief Justice [John] Roberts’s critics,” is “skeptical” of the article, and cites Goldstein and National Review columnist Ed Whelan (see May 15-17, 2012) as examples of those presumed skeptics who have “poured cold water” on the story. According to White, Toobin “front-load[ed] his story with easily disprovable mischaracterizations of the case” that [e]ven a cursory review of the case’s briefs, and contemporary news coverage, disproves Toobin’s thesis” of Roberts using a narrowly drawn case to revamp and invalidate most of US campaign finance law. White writes that Toobin’s characterization of the narrow focus of the case is wrong: “The First Amendment stakes were well known, and much discussed, in the run-up to oral argument.” He cites the New York Times editorial published at the time of the first arguments, in March 2009 (see March 23, 2009), warning that if the Court ruled in favor of Citizens United, “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.” He also notes that respected court reporter Lyle Denniston warned before the oral arguments that the Citizens United case threatened to deliver “a sweeping rejection of Congressional authority to regulate campaign spending by corporations.” Toobin himself made some of the same arguments on CNN the day of the arguments, White notes. He calls Toobin’s version of events in the article a “clumsy fictionalization of the case” designed to vilify Roberts. He also questions Toobin’s characterization of the first arguments from Citizens United (CU) lawyer Theodore Olson, going considerably further than either Goldstein or Adler in accusing Toobin of fundamentally misrepresenting Olson’s original, narrowly focused case. According to White, Olson’s opening argument claimed that the restriction being challenged by CU was “unconstitutional as applied to the distribution of Citizens United’s documentary film through video on demand… [it] plainly exceeds Congress’s sharply limited authority to abridge the freedom of speech.” White claims that Olson cited First Amendment grounds in a portion of the arguments not reported by Toobin, and quotes from Olson’s argument; that quote describes Olson’s citation of the 2007 case Wisconsin Right to Life (WRTL—see Mid-2004 and After and June 25, 2007), which indeed used First Amendment grounds for its successful positioning, and quotes Olson as saying the WRTL decision “errs on the side of permitting the speech, not prohibiting the speech.” White accuses Toobin of deliberately misrepresenting Olson’s argument to “advanc[e] his own anti-Roberts narrative.” White is unable to check the accuracy of Toobin’s behind-the-scenes narrative, as Toobin’s sources are not revealed in the article, but White is “skeptical,” writing, “Given Toobin’s inability of accurately handling straightforward, easily confirmable facts, why should anyone take at face value Toobin’s description of the justices’ private discussions, and their draft opinions—especially when Toobin only describes, never quotes, those deliberations or draft opinions?” Like Adler, Toobin questions the ethics of the person or persons at the Court who “leaked” the story to Toobin. [Weekly Standard, 5/17/2012]

Entity Tags: New York Times, Ed Whelan, Adam White, Jeffrey Toobin, Lyle Denniston, John G. Roberts, Jr, Theodore (“Ted”) Olson, Jonathan Adler, Richard L. Hasen, Thomas Goldstein

Timeline Tags: Civil Liberties

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike