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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Domestic Propaganda, 2010 Elections

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

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

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

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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Domestic Propaganda

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Domestic Propaganda

An unofficial logo for the Cain presidential campaign.An unofficial logo for the Cain presidential campaign. [Source: Draft Cain (.org)]Republican presidential candidate Herman Cain (R-GA), who is battling allegations that he sexually harassed two former employees, is further shaken by reports that his campaign may have accepted illegal corporate donations. The apparently-defunct corporation, Prosperity USA, was run by Wisconsin political operatives Mark Block and Linda Hansen, who now serve as Cain’s chief of staff and deputy chief of staff, respectively. The corporation, which incorporated itself as a nonprofit, tax-exempt organization under federal tax law, helped get Cain’s campaign up and running by paying for tens of thousands of dollars in expenses, including computers, chartered flights, and travel to several states. Such payouts are possible violations of federal tax and campaign law. According to documents obtained by the Milwaukee Journal-Sentinel, Prosperity USA claims it was owed about $40,000 by the Cain campaign for a variety of items in February and March. It is unclear whether the Cain campaign has reimbursed Prosperity USA. Cain began taking donations for his presidential bid on January 1, 2011, but records indicate Prosperity USA may have been spending money on behalf of him well before that date. The records have been verified as authentic by sources close to Prosperity USA. Cain’s federal election filings make no mention of monies owed to Prosperity USA, and the figures in the documents do not match payments made by the Cain Campaign. Other payouts include a $100,000 fee to the Congress of Racial Equality (CORE), a conservative black organization; Cain spoke at the organization’s annual Martin Luther King Jr. dinner in mid-January, an event hosted by controversial conservative blogger Andrew Breitbart. CORE is heavily involved in tea party events. Apparently Cain was not paid for the appearance, inasmuch as his personal financial disclosure forms do not show any honorariums for speeches. [Milwaukee Journal-Sentinel, 10/30/2011; USA, 10/31/2011 pdf file]
Apparent Violations of Tax, Campaign Law - Election law experts say the transactions raise many questions about Priorities USA and its connection to the Cain campaign. A Washington, DC, lawyer who advises many Republican candidates and conservative groups on campaign issues, and refuses to be publicly identified, says, “If the records accurately reflect what occurred, this is way out of bounds.” She says it is a violation of tax law for Prosperity USA to advance money to the Cain campaign for the items invoiced, and the expenditures also seem to violate federal campaign regulations. “I just don’t see how they can justify this,” she says. “It’s a total mess.” Wisconsin campaign attorney Michael Maistelman, a Democrat who has worked for candidates from both parties, agrees, saying, “The number of questionable and possibly illegal transactions conducted on behalf of Herman Cain is staggering.” Think Progress legal expert Ian Millhiser writes that “if Prosperity USA effectively donated money to the Cain campaign by fronting money to them and agreeing not to be paid back, that is a violation of federal election law,” even if the Cain campaign eventually pays the money back. Block and Hansen have refused to comment on the issue. In 1997, Block, then advising the campaign of former Wisconsin Supreme Court Justice Jon Wilcox, settled allegations of election-law violations by agreeing to pay a $15,000 fine and to stay out of Wisconsin politics for three years. [Milwaukee Journal-Sentinel, 10/30/2011; Think Progress, 10/31/2011] Election lawyer Lawrence H. Norton, who formerly served as a general counsel for the Federal Election Commission (FEC), later says, “If they are supporting his campaign, whether directly or indirectly, they are violating the law.” [New York Times, 11/3/2011]
Connections to Koch-Funded Political Organization - In recent years, Block has run the Wisconsin chapter of Americans for Prosperity (AFP—see Late 2004), a nonprofit conservative lobbying and political action group co-founded by the conservative Koch brothers (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, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). AFP played a key role in organizing the tea party movement. Block met Cain through AFP, and encouraged him to run for president. Block has incorporated a number of offshoot organizations and corporations from AFP, most of which bore the word “prosperity” in their names. AFP officials insist that Block’s organizations are legally separate from theirs. Documents show that when Block left AFP at the beginning of 2011, he left behind tens of thousands of dollars in unpaid invoices.
History of Involvement with Cain Campaign - Block’s largest group was the now-defunct Wisconsin Prosperity Network (WPN), envisioned as an umbrella organization that would spend over $6 million a year underwriting other conservative political organizations. Hansen was the group’s executive director. WPN was also set up as a tax-exempt nonprofit organization. Under the law, neither WPN nor Prosperity USA can have direct political involvement with any candidate or candidate organization. Sources familiar with the situation say the two organizations were closely linked, and raised hundreds of thousands of dollars from Wisconsin conservatives. One supporter, who still advocates for Cain and thusly refuses to have his name publicly disclosed, says he and many others are very upset with the groups for failing to use the money they raised for their intended purposes. The supporter names Hansen as being particularly responsible for the groups’ money usage. By February 2011, both groups were deeply in debt, with WPN showing a net loss of $62,000 and Prosperity USA showing net losses of $110,000. Prosperity USA’s biggest debt was an almost-$40,000 debit to “FOH,” which records show means “Friends of Herman Cain,” the name of Cain’s presidential operation. The debt includes almost $15,000 for what is called an “Atlanta invoice”; $17,000 for chartered flight service; $5,000 for travel and meetings in Iowa, Las Vegas, Dallas, Houston, and Louisiana; and $3,700 for iPads purchased for the Cain campaign. Other small-ticket items for travel and expenses by Block are listed as “not billed to FOH but due from them.” Other expenses include a September 2010 bill for $5,000 for costs incurred by Cain’s speech to the conservative Right Nation rally in Chicago, which records show Cain attended at the request of AFP; the Cain campaign later used a segment from that speech in a campaign ad. Prosperity USA also paid for a trip by Block to Washington, DC, to meet with billionaire oil magnate and conservative financier David Koch. Singer Krista Branch, who recorded “I Am America,” the unofficial anthem of the tea party movement, was supposed to be paid $3,000 by Prosperity USA; Cain has since adopted the song as his campaign theme. Branch’s husband, Michael, is a Cain campaign and fundraising consultant. The records also show $150,000 in loans from individuals who are not identified. Sources say Hansen paid much of that loan money to CORE earlier in the year. Michael Dean, the attorney for both Prosperity USA and WPN, resigned his position with WPN in the summer of 2011, and contacted the IRS about the organization’s tax-exempt status. And WPN is a listed litigant in a case pending before the Wisconsin Supreme Court.
'Outside Counsel' Will Review Allegations - The Cain campaign will respond by saying that an “outside” lawyer will review the allegations. “As with any suggestions of this type, we have asked outside counsel to investigate the Milwaukee Journal Sentinel’s suggestions and may comment, if appropriate, when that review is completed,” says campaign spokesman J.D. Gordon. Gordon refuses to identify the “outside counsel,” or give a time frame as to when the review will be complete. [Milwaukee Journal-Sentinel, 10/30/2011; New York Times, 11/3/2011]

Entity Tags: Herman Cain, Americans for Prosperity, Ian Millhiser, Andrew Breitbart, Congress of Racial Equality, Herman Cain presidential campaign (2012), Wisconsin Prosperity Network, J.D. Gordon, Milwaukee Journal-Sentinel, Prosperity USA, Linda Hansen, Lawrence H. Norton, Mark Block, Michael Dean, Michael Maistelman, Jon Wilcox

Timeline Tags: Civil Liberties, 2012 Elections

The Republican National Committee (RNC) files a court brief calling the federal ban on direct corporate donations to candidates unconstitutional, and demanding it be overturned. Such direct donations are one of the few restrictions remaining on wealthy candidates wishing to influence elections after the 2010 Citizens United decision (see January 21, 2010). The brief is in essence an appeal of a 2011 decision refusing to allow such direct donations (see May 26, 2011 and After). The RNC case echoes a request from Senator Mike Lee (R-UT) that he be allowed to form and direct his own super PAC (see November 23, 2011), and recent remarks by Republican presidential frontrunner Mitt Romney (R-MA) calling for donors to be allowed to contribute unlimited amounts to candidates (see December 21, 2011). The RNC brief claims: “Most corporations are not large entities waiting to flood the political system with contributions to curry influence. Most corporations are small businesses. As the Court noted in Citizens United, ‘more than 75 percent of corporations whose income is taxed under federal law have less than $1 million in receipts per year,’ while ‘96 percent of the 3 million businesses that belong to the US Chamber of Commerce have fewer than 100 employees.’ While the concept of corporate contributions evokes images of organizations like Exxon or Halliburton, with large numbers of shareholders and large corporate treasuries, the reality is that most corporations in the United States are small businesses more akin to a neighborhood store. Yet § 441b does not distinguish between these different types of entities; under § 441b, a corporation is a corporation. As such, it is over-inclusive.” Think Progress legal analyst Ian Millhiser says the RNC is attempting to refocus the discussion about corporate contributions onto “mom and pop stores” and away from large, wealthy corporations willing to donate millions to candidates’ campaigns. If the court finds in favor of the RNC, Millhiser writes: “it will effectively destroy any limits on the amount of money wealthy individuals or corporation[s] can give to candidates. In most states, all that is necessary to form a new corporation is to file the right paperwork in the appropriate government office. Moreover, nothing prevents one corporation from owning another corporation. For this reason, a Wall Street tycoon who wanted to give as much as a billion dollars to fund a campaign could do so simply by creating a series of shell corporations that exist for the sole purpose of evading the ban on massive dollar donations to candidates” (see October 30, 2011). [United States of America v. Danielcytk and Biagi, 1/10/2012 pdf file; Think Progress, 1/11/2012] The RNC made a similar attempt in 2010, in the aftermath of Citizens United; the Supreme Court refused to hear an appeal of its rejection. [New York Times, 5/3/2010; Tom Goldstein, 5/14/2012] Over 100 years of US jurisprudence and legislation has consistently barred corporations from making such unlimited donations (see 1883, 1896, December 5, 1905, 1907, June 25, 1910, 1925, 1935, 1940, March 11, 1957, February 7, 1972, 1974, May 11, 1976, January 30, 1976, January 8, 1980, March 27, 1990, March 27, 2002, and December 10, 2003). Shortly after the Citizens United ruling, RNC lawyer James Bopp Jr. confirmed that this case, like the Citizens United case and others (see Mid-2004 and After), was part of a long-term strategy to completely dismantle campaign finance law (see January 25, 2010).

Entity Tags: Republican National Committee, Halliburton, Inc., ExxonMobil, Ian Millhiser, Michael Shumway (“Mike”) Lee, Willard Mitt Romney, US Supreme Court, US Chamber of Commerce, James Bopp, Jr

Timeline Tags: Civil Liberties, 2012 Elections

Senator John McCain (R-AZ) and former Senator Russ Feingold (D-WI) issue a joint statement on the two-year anniversary of the Citizens United ruling (see January 21, 2010), condemning it. The ruling effectively gutted their signature campaign finance law (see March 27, 2002). The statement, issued through Feingold’s group Progressives United, reads: “Two years ago, the Supreme Court handed down one of the worst, and most radically activist decisions in the Court’s history, Citizens United. Overturning more than a century of settled law, and with an unprecedented naiveté of the political process, the Court charted a course for legalized bribery. Sadly, both Democrats and Republicans are now following the dangerous road of unlimited money in politics. There is no question whether scandal will arise from this decision; the only question is when (see October 30, 2011 and December 19, 2011). On this anniversary, we call on both parties to work together to remedy the obvious damage to our political system caused by the Citizens United decision.” [TPM LiveWire, 1/20/2012]

Entity Tags: Russell D. Feingold, John McCain, Progressives United

Timeline Tags: Civil Liberties

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

Senator John McCain (R-AZ), the co-author of the 2002 Bipartisan Campaign Reform Act (BCRA—see March 27, 2002), criticizes the Supreme Court’s 2010 Citizens United ruling that gutted the BCRA and allows corporations and labor unions to make unlimited contributions to election and campaign activities (see January 21, 2010). In a panel discussion, McCain calls the ruling “a combination of arrogance, naivete, and stupidity, the likes of which I have never seen.” He goes on to predict scandals as a result of the ruling enabling unlimited corporate contributions and a lack of disclosure surrounding those contributions (see October 2010, June 23, 2011, October 30, 2011, and December 19, 2011), saying: “I promise you this. I promise you there will be huge scandals… because there’s too much money washing around, too much of it… we don’t know who, who contributed it, and there is too much corruption associated with that kind of money. There will be major scandals.” Asked if he intends to give up on passing campaign reform legislation, he answers: “No. But I’ve got to wait until we think that can pass legislation. And I’m not sure right now, frankly, that we could get it passed.” The next day, Josh Israel of the liberal news Web site Think Progress notes that McCain is somewhat responsible for the inability of Congress to pass meaningful campaign finance legislation. He refused to vote for the Democratically-sponsored DISCLOSE Act (see July 26-27, 2010), decrying it as “a bailout for the unions.” Had McCain voted with Senate Democrats to end the Senate Republican filibuster against the DISCLOSE Act, the bill could have been brought to the floor for an up or down vote. Israel calls McCain’s “grumbling” about campaign finance regulation “little more than grandstanding.” [Think Progress, 3/28/2012]

Entity Tags: DISCLOSE Act of 2010, Bipartisan Campaign Reform Act of 2002, US Supreme Court, John McCain, Josh Israel

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

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