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Context of 'August 1, 2011: Republican House Speaker: ‘I Got 98 Percent of What I Wanted’ in Economic Debt Legislation Deal'

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Sheldon Adelson and his wife Miriam have given $10 million to the super PAC supporting presumptive Republican presidential nominee Mitt Romney, and a source close to Adelson says the billionaire’s further donations will be “limitless.” Adelson owns a global network of casinos, including the Las Vegas Sands and a consortium of casinos on the Chinese island of Macau. Adelson, one of the world’s 15 richest people, once supported Republican presidential candidate Newt Gingrich, donating over $21 million to Gingrich’s failed candidacy, and said he was willing to give up to $100 million to keep Gingrich’s candidacy viable. Forbes reporter Steven Bertoni says that Adelson may be willing to give hundreds of millions to the Romney election effort (see March 26, 2012). “[N]o price is too high” to defeat President Obama’s re-election, says the source close to Adelson. Obama is presiding over what Adelson calls the “socialization” of America, and the source says Adelson considers this the most important election of his lifetime. Because of the Citizens United decision (see January 21, 2010), Adelson faces no restrictions whatsoever on the amount of money he can donate to super PACs supporting Romney. The current recipient of Adelson’s largesse is Romney’s campaign super PAC, Restore Our Future. (To give context, Bertoni writes, “The $10 million donation he just made to Romney is equivalent to $40 for an American family with a net worth of $100,000.” He also notes that Adelson has seen his personal and business profits soar during the Obama administration.) Adelson says: “I’m against very wealthy people attempting to or influencing elections. But as long as it’s doable I’m going to do it. Because I know that guys like [billionaire George] Soros 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 (see January - November 2004). I have my own philosophy and I’m not ashamed of it.” Adelson’s primary cause is the security of Israel and its right-wing government. Adelson is also firmly against the Obama administration’s economic policies, telling Bertoni: “What scares me is the continuation of the socialist-style economy we’ve been experiencing for almost four years. 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.” [Forbes, 6/13/2012; Huffington Post, 6/16/2012]

Entity Tags: Restore Our Future, George Soros, Barack Obama, Miriam Adelson, Obama administration, Steven Bertoni, Newt Gingrich, Willard Mitt Romney, Sheldon Adelson

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties

Politico reporters Kenneth P. Vogel and Tarini Parti report on the difficulty of getting solid information about the donors being organized by the billionaire Koch brothers. Oil magnates 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) intend to raise at least $400 million to defeat President Obama in the 2012 election (see Late May 2012), and to ensure victory for Republicans in state and local races around the nation (see February 21, 2012). Vogel and Parti call the Koch political operation “its own political party,” almost, even going so far as to hold its own semi-annual conventions, including one scheduled for late June in San Diego. That convention will bring together dozens of millionaire and billionaire conservatives, who will write big checks for the Koch efforts. Additionally, the Kochs will unveil their new voter database, Themis (see April 2010 and After), which they expect will help in targeting potential Republican voters around the country. Themis played a big part in a recent successful effort to stop Governor Scott Walker (R-WI) from being recalled, as did huge amounts of Koch-organized donations on behalf of Walker. Three of the prime figures in the Koch efforts are convention “emcee” Kevin Gentry and political operatives Marc Short and Tim Phillips (see May 29, 2009); the operation is orchestrated primarily by Koch advisor and operative Richard Fink. Additionally, the Koch brothers intend to take over the Cato Institute think tank (see February 29, 2012) and make it more politically active. Minnesota television station owner Stanley Hubbard, a longtime Koch supporter, says: “They ask for support—and they get it because we all love our country and we have a different vision than do the liberals. I’ve gotten friends to be involved, and I think others have, too, so I would guess, yes, that’s expanding.” Vogel and Parti expand on how secretive the Koch network (which they call “Koch World”) actually is. They are unable to find out where the San Diego convention is to be held, though they did determine that it is scheduled to take place over the weekend of June 23. A Republican who has worked with Koch-backed groups says: “The Koch groups are very complex in the way they do things. They’re difficult to penetrate from the outside, which is smart. You often need a Sherpa.” The conventions are heavily patrolled by hired security guards, who at one recent convention threw out a Politico reporter under threat of arrest. Participants are required not to discuss the convention with outsiders, including making posts on Facebook or Web blogs. (The winter 2011 convention in Rancho Mirage, California, leaked to the press, sparking what Politico calls “raucous protests” outside the exclusive resort hosting the conference.) According to Vogel and Parti, Phillips runs the lobbying organization Americans for Prosperity (AFP—see Late 2004 and November 2009). Short oversees the spending of Koch network monies by other approved groups, some of which air television ads attacking Democrats. Gentry raises money for the Koch network. Gentry often uses urgent and even apocalyptic rhetoric in his fundraising appeals, warning potential donors of “dangerous and imminent threats” to American society and comparing the Koch conventions to the Continental Congress of 1776. One recent email lauded efforts by Supreme Court Justice Clarence Thomas to help the Koch brothers’ fundraising. Gentry also spearheads the fundraising efforts for an informal network of conservative think tanks such as the Heritage Foundation, AFP, and the Texas Public Policy Foundation. Some conservatives are uncomfortable with the Koch brothers’ attempts to gain dominance in conservative party politics. “Koch has been angling for the last three or four years to consolidate more of the conservative movement within their network,” says one conservative operative. “That’s why they do these seminars—to try to consolidate more big donors’ money and direct it into their projects.” The operative admits that the Koch fundraising efforts are very effective, saying, “Some of the donors believe giving to one source makes it easier for them instead of having to give to a dozen different places, and others just want to come out to hang with the billionaire brothers and be part of a very elite universe.” Koch conventions regularly feature prominent conservatives like Thomas and fellow Supreme Court Justice Antonin Scalia, Texas Governor Rick Perry, New Jersey Governor Chris Christie, Virginia Governor Bob McConnell, House Majority Leader Eric Cantor (R-VA), and right-wing radio hosts Rush Limbaugh and Glenn Beck. While federal documents track some $120 million in donations from recent Koch summit donors, most of the money raised and spent goes untracked, instead being hidden away by “nonprofit” groups that purport to be non-political social advocacy groups. Gentry has assured donors, “There is anonymity that we can protect.” [Politico, 6/15/2012]

Entity Tags: Cato Institute, Stanley Hubbard, Scott Kevin Walker, Tarini Parti, Texas Public Policy Foundation, Themis, Tim Phillips, Rush Limbaugh, Americans for Prosperity, Antonin Scalia, Bob McConnell, Richard Fink, Marc Short, Clarence Thomas, Christopher J. (“Chris”) Christie, Charles Koch, Politico, Eric Cantor, David Koch, Heritage Foundation, Barack Obama, Kenneth Vogel, James Richard (“Rick”) Perry, Kevin Gentry, Glenn Beck

Timeline Tags: Civil Liberties

Casino billionaire Sheldon Adelson, one of the world’s 15 richest people, is on course to contribute at least $71 million to efforts to unseat President Obama in the November presidential elections and elect Republicans to national and state office (see February 21, 2012). Adelson’s contributions are cloaked in secrecy, as much of his contributions go to “nonprofit” political organizations that under the law do not have to disclose their donors. Adelson and his wife Miriam have already contributed $10 million to a “super PAC” backing Republican presidential candidate Mitt Romney (see June 13, 2012), and have either given or pledged to give up to $35 million to other organizations, including Crossroads GPS, a “nonprofit” organization led by former George W. Bush advisor and longtime Adelson friend Karl Rove, the Koch-financed Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), and another organization linked to House Majority Leader Eric Cantor (R-VA). Adelson is a strong supporter of Israel’s far-right government and a staunch opponent of US labor unions. Adelson has told friends that he may give up to $100 million in efforts to unseat Obama and elect Republicans in state races; indications are that he may give much, much more. Some of Adelson’s donations may go to another Koch-funded organization, the Center to Protect Patients’ Rights, which in 2010 was used to funnel tens of millions of dollars to other conservative organizations (see October 12, 2010). The Young Guns Network is a nonprofit group set up by Cantor, and has received $5 million from Adelson (see June 10, 2012). So has the “super PAC” the Congressional Leadership Fund, a group linked to House Speaker John Boehner (R-OH). Adelson’s Las Vegas casino The Sands is under investigation by the Securities and Exchange Commission (SEC) and the Justice Department for possible violations of the Foreign Corrupt Practices Act, which exists to prevent bribery of foreign business officials. The Sands denies any wrongdoing. Adelson previously backed Romney’s opponent Newt Gingrich (R-GA), but as Gingrich’s hopes for the presidential nomination faded, Adelson indicated that he would shift his support to Romney. Adelson has told GOP colleagues he intends to make most of his contributions to nonprofits like Crossroads GPS, which are not required to make the names of their donors, or the amounts of their donations, public. Although the law bars candidates like Romney from soliciting donations exceeding $5,000, Republican fundraisers say that candidates and their representatives have flocked to Adelson in recent months, as have representatives from organizations such as the US Chamber of Commerce, which intends to spend $50 million in efforts to elect Republicans to Congress. The nonprofit Republican Jewish Coalition has received millions from Adelson in the past, and says it intends to spend some $5 million this year on behalf of candidates such as Josh Mandel (R-OH), running to unseat Senator Sherrod Brown (D-OH). Adelson also donated $250,000 to help turn back efforts to recall Governor Scott Walker (R-WI) and $250,000 to a political committee backing Governor Rick Scott (R-FL), who is battling the Justice Department to be allowed to purge hundreds of thousands of minority voters from the voting rolls. [Huffington Post, 6/16/2012] In March 2012, 80 billionaires such as Adelson gave two-thirds of the monies raised by super PACs, creating an outsized influence on the presidential and “downticket” election campaigns (see March 26, 2012).

Entity Tags: Congressional Leadership Fund, US Chamber of Commerce, US Department of Justice, US Securities and Exchange Commission, Willard Mitt Romney, Young Guns Network, Center to Protect Patients’ Rights, American Crossroads GPS, Americans for Prosperity, Sherrod Brown, The Sands, Barack Obama, Josh Mandel, John Boehner, Eric Cantor, Sheldon Adelson, Scott Kevin Walker, Miriam Adelson, Rick Scott, Republican Jewish Coalition, Newt Gingrich, Karl C. Rove

Timeline Tags: Civil Liberties

Black Rock Group logo.Black Rock Group logo. [Source: Black Rock Group]The 2010 Citizens United decision (see January 21, 2010) requires third-party groups working on behalf of candidates or parties not to coordinate their efforts with those candidates or parties—to remain “independent.” Many political observers have suspected that some of these groups are coordinating their efforts with the campaigns and/or with one another. Two of the groups under suspicion are American Crossroads, a super PAC, and Crossroads GPS. The two groups share the same president (Steven Law), the same spokesperson, the same staffers, and the same mailing address. Together, the two have raised $100 million for the 2012 election cycle and have already run millions of dollars of television ads (see April 13-20, 2012). In early June, Crossroads GPS spent $70,000 in advertisements attacking Democratic Senate candidate Heidi Heitkamp (D-ND), half of its $140,000 spent on that race. Shortly before that run of advertisements began, Heitkamp’s Republican challenger, Rick Berg (R-ND), paid the Black Rock Group, a Republican consulting firm in Virginia, thousands of dollars for “communications consulting.” Black Rock is also contracted to perform “advocacy and communications consulting” for American Crossroads. Black Rock’s founding partner, Carl Forti, is American Crossroads’s political director and formerly served as Crossroads GPS’s advocacy director. (Forti also helped start Restore Our Future, presidential candidate Mitt Romney’s super PAC—see June 23, 2011). Black Rock partner Michael Dubke is the founder of Crossroads Media, which buys ads for American Crossroads and Crossroads GPS. Crossroads Media and Black Rock share offices. It would be illegal for Berg’s campaign to consult or coordinate with Crossroads GPS on advertisement strategies. It would not be illegal for Berg’s campaign to consult with Black Rock, and then for Black Rock to consult with Crossroads GPS. “The real scandal is what’s legal,” says Paul Ryan of the Campaign Legal Center. The Citizens United ruling said that groups would disclose their donors and activists, and groups would not coordinate with one another. Yet both provisions are either being ignored or dodged. Fred Wertheimer of Democracy 21 says: “The statu[t]e and the Supreme Court have been very strong on preventing coordination. But the FEC regulations have basically gutted the laws and given us very weak laws to prevent coordination between outside spenders and candidates… despite the fact that the Court’s entire decision in Citizens United is based on the notion that the expenditures are going to be entirely independent from the campaign.” Bill Allison of the Sunlight Foundation says, “[T]he FEC [Federal Election Commission] has a very narrow definition of what coordination actually is.” As long as a campaign and an outside group do not directly communicate, their use of a “common vendor” such as Black Rock is perfectly legal as long as several specific criteria are avoided. “It kind of boggles the mind, but that’s what the FEC has defined and there’s nothing illegal about it.” Ryan says: “It makes the coordination rules pretty meaningless. We have all of this special interest money that we feared might be in the system, and none of the meaningful restraints on coordination, and very limited disclosure.” Allison gives a hypothetical example: “If they’re using the same people to buy ads, and the campaign is telling the ad buyer, ‘We want you to buy ads in such and such and such,’ and the ad buyer does that, the super PAC can then say, ‘Well, run ads where they’re not running ads, or double their ads,’ or whatever. These guys are professionals and they know how to do this. That’s still not coordination.” There is no evidence that Black Rock is ferrying communications between Crossroads GPS and the Berg campaign; according to Black Rock spokesperson Chelsea Wilson, “Black Rock has had firewalls in place since last year which allows the firm to legally engage in federal campaign and independent expenditure or issue advocacy campaigns.” Crossroads GPS is not legally bound to disclose much of its information to the FEC, and it is impossible to know precisely what Crossroads GPS is paying Black Rock to do for it. The Berg campaign denies any coordination, saying in a statement: “While we do work with Black Rock, there is no coordination between our campaign and outside groups and we have no knowledge of what their plans are. We cannot control what outside groups will do.” Allison says that even if Berg’s campaign is being truthful, there are many ways campaigns and outside groups can legally coordinate, using a common advisor such as Black Rock or even individual consultants. “There can be coordination at the level of consultants, even if they’re not at same company,” he says, noting that many consultants know one another socially or have worked together in previous campaigns. It is also possible, and legal, for super PACs to find out where campaigns they are supporting are buying ads by contacting the campaigns of the opposing candidates, which keep track of such information. Forti, the CEO of Black Rock, is in a unique position to facilitate what reporter Alex Seitz-Wald calls “GOP non-coordination coordination,” as he “sits in the middle of a powerful nexus of outside spending groups and GOP political firms all run out of the same office suite in Alexandria, Virginia.” Charles Spies, the treasure of Romney’s Restore Our Future, says of Forti, “I don’t know of anybody who’s got as important of a role with the major outside organizations, both in 2010 and in 2012.” [Salon, 6/19/2012]

Entity Tags: Charles R. Spies, Bill Allison, American Crossroads GPS, American Crossroads, Alex Seitz-Wald, Carl Forti, Rick Berg, Steven Law, Paul S. Ryan, Chelsea Wilson, Crossroads Media, Fred Wertheimer, Black Rock Group, Michael Dubke, Restore Our Future, Heidi Heitkamp

Timeline Tags: Civil Liberties, 2012 Elections

Analysis from the Annenberg Public Policy Center shows that 85 percent of the spending by the top 501(c)4 groups involved in the 2012 presidential campaign has been on ads found to be “deceptive” by fact-checking organizations. Spending from third-party groups, including “nonprofit” 501(c)4 groups, is up by 1,100 percent since the 2008 presidential campaign (see May 2, 2012). All of the ads are by Republican or conservative groups; Democratic 501(c)4 groups have not yet spent any money on the race. The ads, which aired between December 1, 2011 and June 1, 2012, have either targeted Republican presidential primary candidates or President Obama. The Washington Post’s Glenn Kessler, part of the Post’s “Fact Checker” team, recently criticized the wave of untruthful advertising, writing that “watching these ads is a depressing duty for The Fact Checker.… The erroneous assertions emerge… without any shame, labeled as ‘the truth’ or ‘fact.’” Kessler was criticizing ad campaigns by Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009) and the American Future Fund (see October 12, 2010), which spent $8 million to attack Obama’s approval of the expense of “stimulus” money for “wasteful” programs that the ads falsely claimed sent American jobs to foreign countries. According to the Annenberg analysis, the four top groups spending money on deceptive ads are:
bullet The American Energy Alliance, a trade organization that advocates “free market energy policies,” with expenditures of $3,269,000;
bullet Americans for Prosperity, advocating lower taxes and less government spending, with expenditures of $5,018,000;
bullet The American Future Fund, with expenditures of $6,365,930; and
bullet Crossroads GPS, a conservative public policy advocacy group founded by former Bush administration political chief Karl Rove and former Republican National Committee director Ed Gillespie, with expenditures of $10,263,760.
Like the ads Kessler cited, many of the ads bought by the above-listed expenditures went to attack Obama over government financing of green energy companies such as the bankrupt solar company Solyndra. According to Bloomberg News, 81 percent of the attack ads against Obama in the first quarter of 2012 were about energy. [Washington Post, 4/30/2012; Annenberg Public Policy Center, 6/20/2012; Think Progress, 6/27/2012]

Entity Tags: American Crossroads GPS, Barack Obama, American Energy Alliance, Annenberg Public Policy Center, American Future Fund, Americans for Prosperity, Karl C. Rove, Bloomberg News, Ed Gillespie, Glenn Kessler, Solyndra Corporation

Timeline Tags: Civil Liberties, 2012 Elections

Casino billionaire Sheldon Adelson gives $10 million to the billionaire Koch brothers, joining them in their efforts to defeat President Obama in the November presidential elections. Charles and David Koch (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, February 14, 2011, February 29, 2012, Late March 2012, and June 15, 2012) are planning to spend some $400 million to elect Republican candidate Mitt Romney (R-MA) and defeat Obama. The information about Adelson’s donation comes from a Republican Party source in Nevada. Adelson makes his pledge at a Koch donor convention in San Diego, the first time he has attended a Koch-sponsored political event. He has already given $10 million to a Romney “super PAC” (see June 13, 2012), $10 million to a “super PAC” operated by former Bush White House advisor Karl Rove, and $10 million to two groups backing Republican House candidates (see Mid-June, 2012). The Kochs are the driving force behind the “astroturf” organization Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), which has spent millions of dollars on advertisements attacking Obama and other Democrats. The Kochs are also funding Themis, a voter information database (see April 2010 and After). Koch funding extends well into state and even local elections. [Huffington Post, 6/16/2012; Washington Post, 6/29/2012]

Entity Tags: Sheldon Adelson, Barack Obama, Charles Koch, Willard Mitt Romney, David Koch, Karl C. Rove

Timeline Tags: Civil Liberties, 2012 Elections

The First National Romney Victory Leadership Retreat, a two-day, invitation-only conference in Park City, Utah, features a number of prominent Republican lawmakers and financiers gathered to coordinate strategy for the presidential campaign of Mitt Romney (R-MA). The Washington Post describes the event as three days of “strategizing and fraternizing.” One donor and member of Romney’s national finance team told a reporter before the event that a “well organized, committed team” is expected who are “subordinating individual ego for the greater goal.” Perhaps the most controversial figure attending is Karl Rove, the former Bush administration political advisor who now helps run American Crossroads and Crossroads GPS (see April 13-20, 2012). The two groups have been heavily involved in running advertisements and other activities on behalf of the Romney campaign, but the law says the groups must conduct themselves independently of the Romney campaign. The Post reports, “Rove’s appearance could raise questions because of laws barring any coordination between super PACs and campaigns.” Common Cause’s Mary Boyle says that Rove’s appearance “seems to make a mockery of the rule that bans coordination between a super PAC and a candidate.” Tara Malloy, senior counsel for the Campaign Legal Center, agrees with Boyle, but says Rove’s participation in the event is probably legal. “[T]he coordination rule is a pretty slim reed between candidates and the super PACs that support those candidates,” she says. “It’s not by any means an airtight barrier between those two.” To break the law, Romney campaign officials would have to have a “substantial discussion” with Rove about advertising strategies. Malloy says, “The scandal in Washington is what is legal, not what’s illegal.” Other attendees include former Secretary of State James A. Baker; former Minnesota Senator Norm Coleman, the founder of the American Action Network (AAN), another influential “independent” super PAC (see Mid-October 2010); Senators Bob Corker (R-TN) and Rob Portman (R-OH), a possible vice-presidential contender for Romney; former Utah Governor Mike Leavitt (who will lead Romney’s transition team if Romney wins the presidential election); Governor Bob McDonnell (R-VA), another possible vice-presidential choice; former Governor Tim Pawlenty (R-MN), also on the vice-presidential “short list”; former Governor John Sununu (R-NH); and Weekly Standard editor William Kristol. Senator John McCain (R-AZ) speaks to the assemblage, as does former Secretary of State Condoleezza Rice and former Governor Jeb Bush (R-FL). Governor Bobby Jindal (R-LA), a possible vice-presidential pick, moderates a panel discussion on “Innovation in America,” joined by Hewlett Packard CEO Meg Whitman, billionaire donor Ken Langone, and two other possible vice-presidential choices, Representative Paul Ryan (R-WI) and Senator John Thune (R-SD). Rove takes part in a panel discussion called “Media Insight,” along with Romney counsel Ben Ginsberg, Kristol and his Weekly Standard colleague Fred Barnes, and GOP strategist Mary Matalin. A “Women for Romney Victory Tea” features Romney’s wife Anne and former Olympic figure skater Dorothy Hamill. Possible vice-presidential choices Senator Kelly Ayotte (R-NH), Senator Marco Rubio (R-FL), Governor Susana Martinez (R-NM), and Governor Nikki Haley (R-SC) do not attend the conference. Nor does Governor Chris Christie (R-NJ), a popular Republican who is not known to be on the vice-presidential list. Many Wall Street and private equity donors are also in attendance, welcomed by Woody Johnson, the owner of the New York Jets and the co-chair of Romney’s national finance team. One finance team member predicts the three-day event will raise as much as $700 million for Romney’s campaign. [ABC News, 6/20/2012; Washington Post, 6/20/2012; Think Progress, 6/21/2012]

Entity Tags: Bob McDonnell, Susana Martinez, Robert Jones (“Rob”) Portman, Paul Ryan, Norm Coleman, Bob Corker, Tara Malloy, Tim Pawlenty, Washington Post, Willard Mitt Romney, American Crossroads, American Crossroads GPS, Anne Romney, Woody Johnson, William Kristol, Mitt Romney presidential campaign (2012), Mike Leavitt, Nikki Haley, Ben Ginsberg, Fred Barnes, Dorothy Hamill, Condoleezza Rice, Christopher J. (“Chris”) Christie, Bobby Jindal, Meg Whitman, John Ellis (“Jeb”) Bush, James A. Baker, John Sununu, Ken Langone, Marco Rubio, Mary Boyle, Kelly Ayotte, John McCain, Mary Matalin, Karl C. Rove, John Thune

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

A Fourth Circuit federal appeals court rules that while the Supreme Court’s controversial Citizens United decision (see January 21, 2010) allows corporations to make independent expenditures to support or oppose candidates for public office, corporations cannot make direct contributions to candidates. The court’s ruling strikes down an earlier judge’s finding that corporations have exactly the same political speech rights as individuals (see May 26, 2011 and After). [OMB Watch, 7/10/2012]

Entity Tags: US Supreme Court

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

House Democrats try yet again to bring the DISCLOSE Act, which would require corporate and union donors to publicly disclose their campaign contributions, to the chamber for a vote. They are joined by a lone Republican, Walter Jones (R-NC). Democrats so far have 167 signers on the motion to move the bill to the floor for a vote; they need 218. Most observers agree that House Democrats will not get the 218 signatures they need. Recently, Democrats were blocked by Senate Republicans from bringing the bill to a vote (see July 14-17, 2012). [The Hill, 7/24/2012]

Entity Tags: Walter Jones, DISCLOSE Act of 2010, US House of Representatives

Timeline Tags: Civil Liberties

A bar graph issued by the Center for Responsive Politics shows, in the words of the liberal news Web site Think Progress, why Republicans are so strongly in favor of the January 2010 Citizens United decision that lifted restrictions on corporate donations for election and campaign purposes (see January 21, 2010). In 2010, the first election cycle that the decision was in effect, conservative outside groups outpaced liberal/progressive outside groups in spending for the first time since 1996. The data, compiled by the Center, is as follows:
1990 - Conservative outside groups outspent liberal outside groups $3.2 million to $2.4 million.
1992 - Conservative outside groups outspent liberal outside groups $9.4 million to $7.1 million.
1994 - Conservative outside groups outspent liberal outside groups $6.3 million to $2.6 million.
1996 - Liberal outside groups outspent conservative outside groups $9.9 million to $6.5 million.
1998 - Liberal outside groups outspent conservative outside groups $7.5 million to $5.2 million.
2000 - Liberal outside groups outspent conservative outside groups $29 million to $17 million.
2002 - Liberal outside groups outspent conservative outside groups $17.9 million to $4.6 million (see March 27, 2002).
2004 - Liberal outside groups outspent conservative outside groups $121.3 million to $68.5 million (see January - November 2004).
2006 - Liberal outside groups outspent conservative outside groups $38.7 million to $19.6 million.
2008 - Liberal outside groups outspent conservative outside groups $159 million to $120.3 million.
2010 - Conservative outside groups outspent liberal outside groups $183.3 million to $98.9 million (see January 21, 2010).
2012 (to date) - Conservative outside groups outspent liberal outside groups $166 million to $46.9 million.
The chart shows that outside spending was on the rise well before the Citizens United decision, but, as Think Progress legal analyst Ian Millhiser wrote in May 2012: “[A]nother trend is also clear. Prior to Citizens United, which was decided in 2010, left-leaning groups held a moderate-to-significant advantage in election spending. After Citizens United, conservatives absolutely dominated the field.” Millhiser acknowledged that Republican primary spending in the first few months of 2012 played a significant role in the $119.1 million disparity. “Nevertheless, the last two election cycles suggest that conservatives will continue to benefit from Citizens United even once the general election kicks into full gear,” he wrote. ”Citizens United gave such a boost to Republican candidates that outside spending by conservatives grew by more than $70 million from 2008 to 2010, even though 2008 was a presidential election year and outside spending has historically been much higher in these cycles than in off-year [midterm] elections.” [Think Progress, 5/2/2012; Center for Responsive Politics, 8/2012]

Entity Tags: Ian Millhiser, Center for Responsive Politics, Think Progress (.org)

Timeline Tags: Civil Liberties

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