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

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

Timeline Tags: Civil Liberties

The House of Representatives votes 235-190 to eliminate the Presidential Election Campaign Fund (PECF), which provides for voluntary public funding of presidential candidates. The legislation would also shut down the Election Assistance Commission (EAC), a national clearinghouse on the mechanics of voting. Public financing of campaigns has been a target of Republicans since the Citizens United decision allowed corporations and labor unions to give unlimited amounts to campaigns (see January 21, 2010 and June 27, 2011). House Republicans failed in a previous attempt to eliminate the PECF (see January 26, 2011 and After). Representative Zoe Lofgren (D-CA) gives an impassioned defense of the PECF, saying that it is one of the few obstacles that remains to impede what she calls the takeover of the US political system by well-financed special interests. She asks her colleagues whether they believe the “99 percent of Americans that don’t have lobbyists” would benefit in any way by abolishing PECF. She then notes that the Republican National Committee (RNC) got 18 million dollars from this fund and suggests it give the money back, saying: “The level of spending by corporations and special interests since the Supreme Court’s decision in Citizens United should give every American reason for concern. So do my Republican colleagues really believe that more corporate and special interest money in politics is going to benefit in any way the 99 percent of Americans who don’t have lobbyists? The current public financial [sic] system for the presidential elections has problems. Most notably, it has not kept pace with the cost of modern campaigns. So we should fix it instead of eliminating it. I would note that the Republican National Committee recently received 18 million dollars from this fund. If the Republicans think it’s such a bad idea, perhaps they should ask the RNC to return the money.” Senate Majority Leader Harry Reid (D-NV) says the bill has no chance in the Senate, and is critical of House Republicans for advancing it, stating: “Instead of making it so it’s easier for people to vote, they want to do everything they can to make it harder for people to vote. I don’t understand this. They want to have as few people to vote as possible.” Representative Gregg Harper (R-MS), the sponsor of the bill, says the elimination of the PECF would help reduce the deficit. “If we do not eliminate some programs, then a $15 trillion debt will be our decline into a European-style financial crisis,” he says. [Roll Call, 12/1/2011; Think Progress, 12/1/2011] The bill will not pass the Senate.

Entity Tags: US House of Representatives, Gregg Harper, Election Assistance Commission, Harry Reid, Republican National Committee, Zoe Lofgren, Presidential Election Campaign Fund, US Supreme Court

Timeline Tags: Civil Liberties

The Los Angeles City Council unanimously votes into effect a resolution declaring that corporations are not people and are not entitled to the same constitutional protections. The vote is spurred in part by the controversial Citizens United Supreme Court decision (see January 21, 2010) that allowed corporations and labor unions to spend unlimited amounts in independent expenditures on behalf of candidates, and the recent claim by Republican presidential candidate Mitt Romney that “corporations are people” (see August 11, 2011). Mayor Antonio Villaraigosa must sign the resolution into effect. It is non-binding, which means that its value is largely symbolic. Nevertheless, the vote, taken in a chamber packed with Occupy LA members and other activists, draws a standing ovation when it is concluded. If Villaraigosa signs the resolution into effect, Los Angeles will be on record as supporting federal legislation that would ensure corporations are not entitled to the same rights as people, particularly in the area of money spent on elections and campaigning. The resolution also proposed language for a constitutional amendment especially when it comes to spending money to influence elections. It also proposed language for a constitutional amendment declaring that money is not a form of speech and affirming the right of the federal government to regulate corporations (see November 1, 2011). Council President Eric Garcetti, who co-sponsored the resolution with Councilman Bill Rosendahl, says: “Every American should have an equal voice in their government. But unless there are big changes, your voice is only as loud as your bank account. And its the big corporations that have the largest bank accounts of all.… The flood of corporate money since Citizens United is literally drowning our democracy. It’s drowning the people’s voice in the government.” During open debate, activist Sylvia Moore tells the assemblage: “Corporations have taken over our society. They are deciding what we eat, how people educate their children, and whether or not we have health care. Corporations are polluting our environment. Some refuse to pay their fair share in taxes. And they are even deciding who gets to vote. They are making our laws when it’s government officials that should be making our laws.” The resolution cites Supreme Court Justice Hugo Black’s 1938 opinion on the subject, in which Black wrote, “I do not believe the word ‘person’ in the Fourteenth Amendment includes corporations.” [City News Service, 12/6/2011; Think Progress, 12/7/2011]

Entity Tags: Hugo Black, Antonio Villaraigosa, Eric Garcetti, Sylvia Moore, Willard Mitt Romney, Los Angeles City Council, Bill Rosendahl

Timeline Tags: Civil Liberties

A federal appeals court strikes down a Wisconsin law limiting how much a single person can donate to independent political action committees, or PACs. The ruling is made in favor of a lawsuit filed by Wisconsin Right to Life (WRTL), which sued in August 2011 just before a round of recall elections targeting nine state senators. The courts issued a temporary injunction on the law, and the appeals court makes the repeal permanent. Before the ruling, Wisconsin law mandated that individuals could give no more than $10,000 to a PAC. The court rules that such limitations restrict free speech. WRTL’s Barbara Lyons calls the ruling a “sweeping victory” that will allow the group to “significantly contribute to the state and national dialogue on speech and elections.” But Mike McCabe of the Wisconsin Democracy Campaign disagrees, saying that the ruling renders candidates almost irrelevant as special interest groups and their money become dominant in campaigns: “I’m not sure that very many people will notice a difference because money is flowing so freely in Wisconsin politics,” he says. “There’s no shortage of channels through which special interest funds can flow.” The court cites the Supreme Court’s Citizens United decision, which allows unlimited contributions to campaign organizations by corporate and union donors (see January 21, 2010), as the basis for its ruling. Judge Diane Sykes writes in the majority opinion: ”Citizens United held that independent expenditures do not pose a threat of actual or apparent quid pro quo corruption, which is the only governmental interest strong enough to justify restrictions on political speech. Accordingly, applying the $10,000 aggregate annual cap to contributions made to organizations engaged only in independent spending for political speech violates the First Amendment.” The ruling is expected to have a tremendous impact on recall elections scheduled for 2012, including the recall of Governor Scott Walker (R-WI), as groups both in support of and opposition to the recalls can spend large amounts of money on campaign advertising. [Associated Press, 12/11/2011; Think Progress, 12/13/2011] WRTL won a landmark Supreme Court case in 2007 that struck down restrictions on so-called “issue advertising” (see June 25, 2007), a ruling that directly impacted today’s court finding. Days later, the local Chippewa Herald will write an editorial criticizing the ruling. The editorial specifies the “dialogue” that WRTL’s Lyons means “a heavy rotation of television and radio ads, phone calls, and direct-mail pieces.” WRTL’s purpose in its electioneering is fairly transparent, the Herald states, but many of the special interest groups involved in such electioneering are not transparent at all. “Do we want our campaigns to be about what the candidates stand for—heard directly from them—or about issue ads where candidates are either supported or attacked through a thinly veiled message urging people to contact a particular candidate?” The Herald notes that much of the $44 million spent on the state senate recalls “came from groups not subject to the state campaign contribution limit,” and few Wisconsin citizens know who those groups are. “The courts have ruled that political contributions and campaign spending is a First Amendment right,” the Herald states. “But those contributions and spending should not be done in secret or through a maze of groups and organizations that operate like legal money launderers.” The Herald advocates “complete disclosure” to “ensure openness and a clean and healthy democracy.” [Chippewa Herald, 12/14/2011]

Entity Tags: Chippewa Herald, Wisconsin Right to Life, Barbara Lyons, Mike McCabe, Scott Kevin Walker, Diane Sykes

Timeline Tags: Civil Liberties

The logo of InfoCision, the telemarketing firm that received much of the ASWF monies.The logo of InfoCision, the telemarketing firm that received much of the ASWF monies. [Source: InfoCision]Presidential candidate Newt Gingrich (R-GA) has apparently exploited a loophole in campaign finance law that has allowed him to build what McClatchy News calls “a political money machine that raised $54 million over five years,” according to McClatchy reports. Gingrich has used “a supposedly independent political committee that collected unlimited donations” to “finance… a coast-to-coast shadow campaign that raised his profile and provided a launch pad for his presidential run.” Critics call the ASWF issue another aftereffect of the Citizens United decision (see January 21, 2010).
$54 Million over 5 Years - The Gingrich-supporting PAC, “American Solutions for Winning the Future” (ASWF) was closed down in July 2011. Organized as a so-called “527 group” (see 2000 - 2005 and June 30, 2000), the tax-exempt, “nonprofit” organization raised $28.2 million in the two-year period ending December 31, 2010, the last period for which McClatchy has data. The Center for Responsive Politics reports that ASWF raised almost double the amount garnered by the next closest 527. The organization raised some $54 million throughout its existence, from 2006 to July 2011. McClatchy has learned some of the details behind ASWF and is now revealing them to the public. The organization provided at least $8 million to pay for the chartered luxury jets that Gingrich used to fly back and forth around the nation for public appearances and campaigning for president. The jet charters occurred during the 2008 and 2012 presidential primaries.
Largely Financed by Billionaire, Corporate Donations - ASWF has accepted enormous cash donations from billionaires such as Sheldon Adelson, a Las Vegas casino owner, who has emerged as Gingrich’s primary benefactor. Adelson has given $7.65 million to ASWF, including a million-dollar startup contribution in 2006. According to an Adelson spokesperson, “he and Speaker Gingrich go back a number of years.” Adelson is a prominent supporter and financier of Israeli Prime Minister Benjamin Netanyahu, and like Gingrich holds far-right, aggressively territorial views about Israel. Gingrich has made provocative statements about Israel and the Palestinian people over the years, denying that the Palestinians are a separate people and declaring his support for Israel’s forced-settlement plans that have displaced many Palestinians. A Gingrich spokesman says Adelson and others merely gave to the organization because they agree with Gingrich’s views. Charlotte, North Carolina, real estate developer Fred Godley gave ASWF $1.1 million in 2007 and another $100,000 in 2009. Energy firms donated heavily to ASWF: Peabody Energy, the world’s largest private coal producer, and its chief lobbyist Fred Palmer gave ASWF $825,000. Arch Coal, the US’s second-largest coal company, gave $100,000. Oil and gas firm Devon Energy gave $400,000, as did American Electric Power Company and its CEO Michael Morris. Plains Exploration Company gave $200,000. The late Cincinnati billionaire Carl Lindner gave $690,000. Dallas real estate firm Crow Holdings gave $600,000. Minnesota broadcasting mogul Stanley Hubbard gave $385,000. Wisconsin businessman Terry Kohler gave $328,082. California businessman Fred Sacher gave $275,000. NASCAR president James France gave $264,000. Home Depot co-founder Bernie Marcus gave $250,000. Another Las Vegas casino owner, the late Frank Fertitta Jr., gave $250,000, along with his sons; together the three of them co-owned a casino and the Ultimate Fighting Championship sports league. Former CarMax and Circuit City chief Richard Sharp gave $150,000. Stock brokerage titan Charles Schwab gave $150,000. Cincinnati Reds owner Robert Castellini gave $146,000. Political science professor Larry Sabato says that in light of such enormous contributions, “there’s no way that any politician is going to deny you much of anything that you want.”
New Super PACs Supplanting ASWF - In place of ASWF, two new pro-Gingrich super PACs have formed to support Gingrich’s attempt to close the gap between himself and frontrunner Mitt Romney (R-MA) in the Republican primary.
'Diabolical Scheme' to 'Circumvent' Campaign Finance Law - Campaign expert Lawrence Jacobs calls Gingrich’s use of ASWF “clever,” and adds, “Looking back, and now seeing Gingrich as the frontrunner… it’s an ingenious, diabolical scheme to circumvent what’s left of the campaign finance regime.” Jacobs says of the organization: “The money wasn’t used literally to finance a campaign for a particular office. It was used for a general, over-time campaign to keep Gingrich alive politically—an enormously luxurious campaign operation to sustain his political viability for the right time to jump into the presidential race. It’s no accident that he’s popped in in 2012.” Jacobs says ASWF operated “right on the line” of legality. Sabato says ASWF played a key role in resuscitating Gingrich’s flagging political career. His term as speaker of the House ended in scandal and resignation, and his high-profile divorces and profligate personal and campaign spending had led many to assume that Gingrich’s political career was over. But Sabato says Gingrich used ASWF to create what he calls a new kind of informal candidacy, one that shows the inherent weakness of campaign finance laws that are supposed to ensure “nobody could give so much money that they would become too influential, too powerful.” ASWF was always nominally independent, as required by law, but in 2009 Gingrich ousted its board of directors and took the title of general chairman. Gingrich never formed a formal exploratory committee before declaring his candidacy for president. McClatchy observes, “None of his Republican presidential rivals, nor any other federal candidate for that matter, is known to have operated such a committee before formally declaring his or her candidacy.” Gingrich spokesperson R.C. Hammon says Gingrich did not begin considering a presidential campaign until April 2011, and all of his committee activities were “legitimate.” Hammond says: “The purpose of American Solutions was to advance an agenda of free enterprise and tri-partisan solutions. Those were the activities he was undertaking.” ASWF is just one of a network of political entities that Gingrich has created over the last 10 years. He has managed to enrich himself by charging lucrative fees for speeches, consulting for undisclosed health care industry firms, and selling historical documentaries and books. After the group was formed in the fall of 2006, Gingrich sent a letter to potential backers calling it a unique organization “designed to rise above traditional gridlocked partisanship” and to develop “breakthrough solutions to the most important issues facing this country.” Vin Weber, a former Minnesota congressman who served on ASWF’s board for two years, says the group “certainly helped build his path back into political prominence.” He adds, “They basically sent Newt around the country promoting American Solutions.” Weber is now supporting Romney for the presidency. He says that ASWF had “not gotten really up to speed in terms of programming” when he received a call, apparently in 2008, advising him that the board was being abolished. Gingrich then took over as the group’s general chairman.
Relatively Little Spent on Campaign Initiatives, Most Spent on Raising More Money - ASWF proposed a number of campaign and advertising initiatives that would appeal to conservative donors, including:
bullet a “Drill Now!” movement aimed at increasing US oil exploration;
bullet attempts to rally opposition to President Obama’s health care reform efforts;
bullet a campaign to fight climate change legislation that would call for reduced carbon emissions by industrial concerns.
But of $37.9 million raised from 2006 through 2009, the committee spent just $7.2 million on programs, according to its filings with the Internal Revenue Service. Most of the ASWF money was spent on telemarketers and direct-mail appeals to develop a loyal pool of wealthy contributors. InfoCision, an Ohio telemarketing firm that specializes in building lists of “small” donors, was paid some $30 million over the course of the organization’s existence, exhausting much of the money contributed. $17 million of that money was used to finance Gingrich’s travel. [McClatchy News, 12/19/2011; Think Progress, 12/19/2011]

Entity Tags: Bernie Marcus, Benjamin Netanyahu, Richard Sharp, R.C. Hammon, Plains Exploration Company, Sheldon Adelson, Stanley Hubbard, Terry Kohler, Vin Weber, American Electric Power Company, Barack Obama, American Solutions for Winning the Future, Willard Mitt Romney, Arch Coal, Newt Gingrich, Robert Castellini, McClatchy News, Michael Morris, Crow Holdings, Charles Schwab, Center for Responsive Politics, Carl Lindner, Devon Energy, Frank Fertitta Jr., Peabody Energy, Fred Palmer, Internal Revenue Service, InfoCision, James France, Fred Sacher, Larry J. Sabato, Fred Godley, Lawrence Jacobs

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties, 2012 Elections

The Montana Supreme Court rules 5-2 in the case of Western Tradition Partnership v. Bullock that a century-old law prohibits corporate spending in state and federal elections conducted within the state. The ruling seems to challenge the US Supreme Court’s Citizens United ruling (see January 21, 2010). The case stems from a challenge by a “social welfare organization,” Western Tradition Partnership (WTP, which changed its name to American Tradition Partnership after the original lawsuit was filed), joined by two other corporate entities, to Montana’s 1912 Corrupt Practices Act (CPA). The law banned corporate spending in elections, after two out-of-state copper industry magnates attempted to “buy” the Montana legislature by pouring money into the 1894 state elections. The law declares that “corporations may not make… an expenditure in connection with a candidate or a political committee that supports or opposes a candidate or a political party.” The Montana Supreme Court finds that the CPA is needed to ensure the integrity of Montana’s elections, and to make sure that citizens and not corporations are running the state. However, the Court acknowledges that its ruling conflicts with the Citizens United decision, though it says that the Citizens United decision allows for restrictions on corporate political speech if the government can demonstrate that the restrictions are as minimal as possible to achieve a compelling governmental interest. The Montana Court rules that because of Montana’s history of corporate vote-buying and the narrow restrictions of the CPA, the law should stand. It also notes that Western Tradition Partnership argued in its original suit that disclosure laws, as opposed to outright bans, would serve the public interest and guard against corruption; however, the organization is currently involved in another lawsuit in which it argues that those same disclosure laws are unconstitutional restrictions of the freedom of speech. [Western Tradition Partnership v. Bullock et al, 12/30/2011 pdf file; Los Angeles Times, 1/4/2012; Reuters, 6/25/2012; OMB Watch, 6/25/2012; Washington Post, 6/25/2012; OMB Watch, 7/10/2012] Even one of the dissenters, Justice James C. Nelson, disagrees with the Citizens United characterizations that corporations are legally people, writing: “Corporations are not persons. Human beings are persons, and it is an affront to the inviolable dignity of our species that courts have created a legal fiction which forces people—human beings—to share fundamental, natural rights with soulless creatures of government. Worse still, while corporations and human beings share many of the same rights under the law, they clearly are not bound equally to the same codes of good conduct, decency, and morality, and they are not held equally accountable for their sins. Indeed, it is truly ironic that the death penalty and hell are reserved only to natural persons.” WTP’s director Donald Ferguson says after the decision that the case hinges on freedom of speech (see January 21, 2010): “The current state law says that if you own a business and you would like to use the resources of the business to speak out about how you see the law, you essentially have to ask prior permission from the state. Under the current regime, the state regulatory agencies and the newspapers basically have a monopoly on information. We’re simply trying to put more free speech in motion.” [Los Angeles Times, 1/4/2012; Huffington Post, 1/4/2012]
Legal Scholars Anticipate Montana Ruling to be Overturned - Paul Ryan of the Campaign Legal Center calls the Montana high court’s ruling “an antidote to the crabbed view of corruption” displayed in Citizens United. Ryan, like many others, anticipates the US Supreme Court will overturn today’s ruling. [Huffington Post, 1/4/2012] One of those others is law professor Richard Hasen, who writes: “[I]f the Court were being honest in Citizens United, it would have said something like: ‘We don’t care whether or not independent spending can or cannot corrupt; the First Amendment trumps this risk of corruption.’ But the Court didn’t say that, because it would have faced even greater criticism than it already has. So it dressed up its value judgment (no corruption ‘implied in law’) as a factual statement. The Montana Supreme Court called SCOTUS [the US Supreme Court] on this. And when SCOTUS reverses, the disingenuousness of this aspect of CU will be on full display for all.” Hasen is referring to the Court’s finding in Citizens United that independent spending in elections does not legally imply corruption. [Rick Hasen, 1/1/2012]
Appeal to Supreme Court - Attorneys for WTP and the other corporate plaintiffs will appeal to the US Supreme Court on the grounds that Montana is bound by the Citizens United decision and that the decision applies to state as well as federal elections. Attorney James Bopp, in filing the appeal, will say: “If Montana can ban core political speech because of Montana’s unique characteristics, free speech will be seriously harmed. Speakers will be silenced because of corruption by others over a century ago.” The US Supreme Court will quickly issue a stay of that decision. [Reuters, 6/25/2012; OMB Watch, 6/25/2012] When the case reaches the US Supreme Court, the name of the plaintiff will change into “American Tradition Partnership,” and the Court’s documentation will reflect that change. The Court will overrule the Montana decision (see June 25, 2012). After the decision, American Tradition Partnership’s Web site will disappear, but the liberal accountability organization SourceWatch will describe the organization’s parent, the American Tradition Institute, as described in the group’s mission statement: “a public policy research and educational foundation… founded in 2009 to help lead the national discussion about environmental issues, including air and water quality and regulation, responsible land use, natural resource management, energy development, property rights, and free-market principles of stewardship.” ATI and its affiliates are pro-development and against expanded environmental regulation, according to SourceWatch’s documentation, made up of “a broader network of groups with close ties to energy interests that have long fought greenhouse gas regulation.” [SourceWatch, 2012]

Entity Tags: American Tradition Institute, American Tradition Partnership, Donald Ferguson, James C. Nelson, 1912 Corrupt Practices Act (Montana), SourceWatch, US Supreme Court, Paul S. Ryan, Montana Supreme Court, James Bopp, Jr, Richard L. Hasen

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties, 2012 Elections

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

Entity Tags: Kendall Thomas, Steven Rosenfeld, Jill Jepsen

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties, 2012 Elections

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

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

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

Timeline Tags: Civil Liberties, 2012 Elections

Main Street Alliance logo.Main Street Alliance logo. [Source: Alliance for a Just Society]According to a survey conducted by three business groups, two-thirds of small-business owners believe that the Citizens United decision (see January 21, 2010) is bad for small businesses. The survey of 500 small business leaders is released by the American Sustainable Business Council, the Main Street Alliance, and the Small Business Majority. Sixty-six percent of respondents say that the Citizens United decision has hurt business, while only 9 percent view it favorably. Eighty-eight percent of small business owners hold a negative view of the role money plays in politics, and 68 percent view it very negatively. David Levine of the American Sustainable Business Council says: “As we approach the two-year anniversary of the Citizens United case, the verdict is loud and clear: the ruling hurts the small businesses that we need to be strong for economic recovery. Business owners are frustrated because they have to compete with big business bank accounts to be heard, and they are fighting back. More than 1,000 business owners have joined ASBC’s Business for Democracy campaign to fight for a constitutional amendment that overturns this decision” (see November 23, 2010, November 1, 2011, November 18, 2011, and December 20, 2011). Small Business Majority founder and CEO John Arensmeyer says: “America’s entrepreneurs feel corporations have an outsized role and say in politics—to the detriment of the small business community. They’re looking for a level playing field, and as the country’s primary job creators, they should have it.” Melanie Collins, who leads the Maine Small Business Coalition and the Main Street Alliance, says: “Small business owners aren’t stupid. We know who wins when corporate heavy hitters can spend all the money they want, as secretively as they want, to influence our country’s elections—and it’s not us. The Citizens United decision stacked the deck against small businesses. We’ve got to unstack that deck.” [The Main Street Alliance, 1/18/2012 pdf file] Marie Diamond of the liberal news Web site Think Progress agrees, writing: “Small business has been hailed by legislators of both parties as the undisputed engine of economic growth. Fifty-one percent of Americans are employed by small business, and small businesses generate 70 percent of new private sector jobs. But they increasingly find their needs ignored by lawmakers who favor corporate contributors with deeper pockets.” [Think Progress, 1/18/2012]

Entity Tags: Marie Diamond, American Sustainable Business Council, David Levine, Main Street Alliance, Small Business Majority, John Arensmeyer, Melanie Collins

Timeline Tags: Civil Liberties

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

A poll conducted by the Center for American Progress, a liberal advocacy organization, shows that Americans strongly reject the idea that corporations should have the same constitutional rights as people, a position made famous by presidential candidate Mitt Romney (R-MA—see August 11, 2011). The poll also shows that in the aftermath of the 2010 Citizens United decision (see January 21, 2010), Americans are very concerned about corporate favoritism affecting the electoral process and the judicial system. The poll is just now released, but contains data compiled by public opinion research during 2010 and 2011. Fifty-six percent of those surveyed disagree that “corporations are people,” opposed to 25 percent who agree. Sixty-five percent of those surveyed say that corporations should not be allowed to spend unlimited amounts of money in political campaigns, whereas 17 percent of those surveyed feel that corporations should be able to spend at will. [Center for American Progress, 1/23/2012]

Entity Tags: Willard Mitt Romney, Center for American Progress

Timeline Tags: Civil Liberties

Republican candidates and campaign financiers are beginning to advocate for unlimited donations by wealthy contributors directly to presidential campaigns, using language that is remarkably similar to one another, says Think Progress reporter Scott Keyes. While most Americans disagree with letting so much unregulated and unaccountable money into politics (see January 23, 2012), advocates of direct donations apparently believe that current campaign finance laws, even after the Citizens United ruling (see January 21, 2010), are still too restrictive. Keyes writes, “The language used by different high-ranking Republicans is so similar that it suggests a certain level of message-coordination on the subject.” He notes a recent statement by Republican presidential frontrunner Mitt Romney (R-MA—see December 21, 2011), a similar statement by former Republican presidential candidate and current Romney supporter Tim Pawlenty (R-MN—see January 21, 2012), and a January 27 statement by Republican financier Fred Malek (see Mid-October 2010), who told him, “I would favor unlimited contributions to candidates with full disclosure.” Keyes writes that although Romney, Pawlenty, and Malek couple their calls for direct donations with calls for disclosure and transparency, Republicans have consistently voted against measures that would actually bring transparency to campaign finance (see July 26-27, 2010). [Think Progress, 1/31/2012] The Republican National Committee (RNC) has a lawsuit pending that would legalize unlimited donations directly to candidates (see January 10, 2012).

Entity Tags: Scott Keyes, Fred Malek, Tim Pawlenty, Republican National Committee, Willard Mitt Romney

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties, 2012 Elections

The decision of the Montana Supreme Court to uphold Montana’s ban on corporate donations to political campaigns (see December 30, 2011 and After), which directly contradicts the US Supreme Court’s Citizens United decision (see January 21, 2010), is being appealed to the US Supreme Court. The plaintiffs, American Tradition Partnership (ATP) and the other two corporate entities that joined ATP in the original lawsuit, ask Justice Anthony Kennedy to issue a stay on the Montana high court verdict while the Supreme Court considers the appeal. In their application for a stay, the plaintiffs write: “The Montana Supreme Court held the ban constitutional despite the holding in [the Citizens United decision] that ‘[n]o sufficient governmental interest justifies limits on the political speech of nonprofit or for-profit corporations.’ Immediate relief is needed to prevent irreparable harm to the corporations’ First Amendment free-speech right. Montana’s primary elections are on June 5, making it vital that planning begin now for independent expenditures before the election.” The application also asks Kennedy to refer the matter to the Court, have it treated as a petition for review, and then summarily reverse the Montana Supreme Court. James Bopp, lead counsel for the plaintiffs, writes, “The lower court’s refusal to follow Citizens United is such an obvious, blatant disregard of its duty to follow this Court’s decisions that summary reversal is proper.” In a statement, Bopp adds: “Unequivocally, Citizens United means that corporate independent expenditure bans are invalid under the United States Constitution. The Montana Supreme Court has shirked its responsibility to follow that decisions and the United States Supreme Court should reverse their ruling.” The other two parties involved as plaintiffs are the Montana Shooting Sports Association and Champion Painting Inc. At least five justices vote to issue the stay, though an official decision to accept the case on appeal is still pending, and the Court has not spoken on the subject of summary reversal. Two justices who dissented from the Citizens United case, Ruth Bader Ginsberg and Stephen Breyer, agree that the Montana Supreme Court’s decision should be reviewed, but in a statement attached to the stay order, add: “Montana’s experience, and experience elsewhere since this Court’s decision in Citizens United v. Federal Election Comm’n, make it exceedingly difficult to maintain that independent expenditures by corporations ‘do not give rise to corruption or the appearance of corruption.’ A petition for certiorari will give the Court an opportunity to consider whether, in light of the huge sums currently deployed to buy candidates’ allegiance, Citizens United should continue to hold sway. Because lower courts are bound to follow this Court’s decisions until they are withdrawn or modified, however, I vote to grant the stay.” The stay allows Montana corporations to donate without restriction to super PACs operated on behalf of electoral candidates. [Legal Times, 2/10/2012; SCOTUSBlog, 2/17/2012; US Supreme Court, 2/17/2012 pdf file] The US Supreme Court will strike down the Montana ruling (see June 25, 2012).

Entity Tags: Montana Shooting Sports Association, American Tradition Partnership, Anthony Kennedy, James Bopp, Jr, Stephen Breyer, Champion Painting Inc., Montana Supreme Court, Ruth Bader Ginsberg, US Supreme Court

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

Senator John McCain (R-AZ), the co-author of the 2002 McCain-Feingold campaign finance law (see March 27, 2002) that was dramatically curtailed by the 2010 Citizens United decision (see January 21, 2010), criticizes the decision on the Sunday morning talk show This Week. Asked by ABC reporter Jake Tapper about the state of the presidential campaign, McCain lambasts the Supreme Court for handing down the decision, saying: “I’ve been in very tough campaigns. I don’t think I’ve seen one that was as personal and as characterized by so many attacks as these are. And, quite frankly, one of the reasons is the super PACs. And why do we have the super PACs? Because of the ignorance and naivete of the United States Supreme Court in the Citizens United campaign.” [Mediaite, 2/19/2012] McCain, along with former Senator Russ Feingold (D-WI), issued a formal statement on the two-year anniversary of the decision that was highly critical of it (see January 20, 2012).

Entity Tags: John McCain, Russell D. Feingold, US Supreme Court, Jake Tapper

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties, 2012 Elections

A 2012 Vermont town meeting comes to order.A 2012 Vermont town meeting comes to order. [Source: Vermont Public Radio]Fifty-three Vermont towns and communities pass resolutions today urging Congress to amend the US Constitution to keep wealthy special interests from having an undue influence in politics. Today is Town Meeting Day across Vermont. Supporters want an amendment to invalidate the 2010 Citizens United decision that allows corporations and labor unions to spend unlimited amounts of money in political campaigns (see January 21, 2010). State Senator Virginia Lyons says while the process of amending the Constitution “is a long one… if we don’t do this we stand to lose a great deal more.” New York City (see January 4, 2012), Los Angeles (see December 6, 2011), Portland, Maine (see January 18, 2012), Boulder, Colorado, Madison, Wisconsin, Corvallis, Oregon, and other towns and cities have adopted similar resolutions. [NECN News, 3/7/2012; Think Progress, 3/7/2012] Several efforts have been made to introduce such an amendment (see September 20, 2011, November 23, 2010, November 1, 2011, November 18, 2011, and December 20, 2011).

Entity Tags: Virginia Lyons

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

Kenneth Griffin.Kenneth Griffin. [Source: Start a Hedge Fund (.com)]Billionaire hedge fund investor Kenneth Griffin tells a Chicago reporter that he does not believe the extraordinarily wealthy wield enough political influence in America, and says that they must step up to stop America’s “drift” towards Soviet-style “socialism.” Griffin, alone and in conjunction with his wife Anne, has given $150,000 to Restore Our Future, the super PAC that supports Mitt Romney (see June 23, 2011). He has also given over $560,000 to the Republican Governors Association and $300,000 to American Crossroads, the advocacy organization founded by Republican strategists Ed Gillespie and Karl Rove. The Griffins have been heavy Republican donors in previous election cycles, and have given around $1.5 million to Americans for Prosperity (AFP—see Late 2004), the “astroturf” lobbying and advocacy organization founded and sponsored by the billionaire oil magnates Charles and David Koch. Of his contributions to AFP, he explains: “Charles and David Koch are huge advocates for free markets (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). I have a tremendous respect for their intellectual and financial commitment to embracing a set of economic policies that will give us global competitiveness.… I share their fundamental belief that economic freedom is core to the ethos of our country. It’s the idea that any person can pursue their dreams, whether it’s starting a business or who they choose to work for.” Asked, “Do you think the ultrawealthy have an inordinate or inappropriate amount of influence on the political process?” Griffith replies: “I think they actually have an insufficient influence. Those who have enjoyed the benefits of our system more than ever now owe a duty to protect the system that has created the greatest nation on this planet. And so I hope that other individuals who have really enjoyed growing up in a country that believes in life, liberty, and the pursuit of happiness—and economic freedom is part of the pursuit of happiness—[I hope they realize] they have a duty now to step up and protect that.… At this moment in time, these values are under attack. This belief that a larger government is what creates prosperity, that a larger government is what creates good [is wrong]. We’ve seen that experiment. The Soviet Union collapsed. China has run away from its state-controlled system over the last 20 years and has pulled more people up from poverty by doing so than we’ve ever seen in the history of humanity. Why the US is drifting toward a direction that has been the failed of experiment of the last century, I don’t understand. I don’t understand.” Asked if he believes he should continue to be allowed to make unlimited donations on behalf of candidates (see January 21, 2010), he answers: “In my opinion, absolutely. Absolutely. The rules that encourage transparency around that are really important.… My public policy hat says transparency is valuable. On the flip side, this is a very sad moment in my lifetime. This is the first time class warfare has really been embraced as a political tool. Because we are looking at an administration that has embraced class warfare as being politically expedient, I do worry about the publicity that comes with being willing to both with my dollars and, more importantly, with my voice to stand for what I believe in (see July 20, 2011).… I live in financial services, and every bank in the United States is really under the thumb of the government in a way it’s never been before. And that’s really worrisome to me, as someone who’s willing to say, ‘Wait, we need to step back and try to push government outside the realm of every dimension of our lives.’” [Think Progress, 3/10/2012; Chicago Tribune, 3/11/2012]

Entity Tags: David Koch, American Crossroads, Americans for Prosperity, Charles Koch, Republican Governors Association, Willard Mitt Romney, Kenneth Griffin, Anne Griffin, Restore Our Future

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties, 2012 Elections

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

A federal court rules that the Federal Election Commission (FEC) has exceeded its authority by requiring only corporations and labor unions, and not all contributors, to report contributions made for the purpose of furthering electioneering communications as defined in the 2002 Bipartisan Campaign Reform Act (BCRA—see March 27, 2002). Judge Amy Berman Jackson of the US District Court in Washington, DC, issues the ruling in the case of Van Hollen v. Federal Election Commission, filed by US Representative Chris Van Hollen (D-MD—see April 21, 2011 and After). Under the BCRA, corporations or labor unions who do not segregate their funds for campaign purposes as opposed to more general purposes must report all contributions of $1,000 or more. (The Citizens United decision of 2010 rendered such segregation of funds optional—see January 21, 2010.) Those contributions include money donated by anyone who gives to a corporation or labor union. In December 2007, the FEC revamped its disclosure regulation in the wake of the Right to Life v. Federal Election Commission ruling (the so-called “WRTL ruling”—see June 25, 2007) to create a loophole allowing corporations to evade disclosure requirements. 501(c)4 groups such as Crossroads GPS have avoided disclosure of their donors by using this loophole. Jackson agrees with Van Hollen, ruling that the FEC’s revision violates the plain language and legislative purpose of the BCRA. Jackson writes: “Congress spoke plainly, that Congress did not delegate authority to the FEC to narrow the disclosure requirement through agency rulemaking, and that a change in the reach of the statute brought about by a Supreme Court ruling did not render plain language, which is broad enough to cover the new circumstances, to be ambiguous. The agency cannot unilaterally decide to take on a quintessentially legislative function; if sound policy suggests that the statute needs tailoring in the wake of WRTL or Citizens United, it is up to Congress to do it.” She rejected arguments that broader reporting requirements would place an undue burden on corporations and unions, and thusly would violate their First Amendment freedoms, ruling that the Citizens United decision already invalidated those arguments by upholding BCRA reporting requirements. If Jackson’s ruling survives an appeal, the FEC will have to go back and revamp its regulatory language to require disclosure of all contributors, no matter what the purpose, for any corporation or labor union that uses general, unsegregated funds for campaign purposes. Or, corporations and unions may choose to create segregated funds for campaign purposes in order to avoid reporting their contributors. Josh Israel of the liberal news Web site Think Progress writes that even if the FEC chooses to rewrite its rules to comply with Jackson’s ruling, “countless loopholes remain” to allow corporations and unions to shield the identities of their donors. For instance, donors and companies could more-or-less launder donations through middle-man groups, shielding their own identities. “Even if we somehow achieved full disclosure… for all political spending,” Israel writes, “any meaningful reforms to the campaign finance system will require the high court to reverse the 5-4 Citizens United ruling.” [Law Librarians' Society of Washington, D.C., 9/2002; National Archives and Records Administration, 2012; Van Hollen v. Federal Election Commission: Memorandum Opinion, 3/30/2012; Constitutional Law Prof Blog, 4/3/2012; Think Progress, 4/9/2012] On May 14, an appeals court will refuse a stay of the decision, filed by an organization identified in the court order as the Center for Individual Freedom. [US Court of Appeals for the District of Columbia Court, 5/14/2012 pdf file]

Entity Tags: Bipartisan Campaign Reform Act of 2002, Amy Berman Jackson, American Crossroads GPS, Federal Election Commission, Center for Individual Freedom, Chris Van Hollen, Josh Israel, US Supreme Court

Timeline Tags: Civil Liberties

American Energy Alliance logo.American Energy Alliance logo. [Source: NJI Media]The press learns that a recent $3.6 million television ad campaign attacking President Obama on gasoline prices was funded by the oil billionaires Charles and David Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011 and February 14, 2011). The ad campaign was launched by the American Energy Alliance (AEA), the political arm of the Institute for Energy Research. Both organizations are heavily funded by the Koch brothers and their donor network, though information about their finances is sketchy, as the groups do not have to disclose their donor rolls to the public. The two groups are run by Tom Pyle, a former lobbyist for Koch Industries. Pyle regularly attends what news Web site Politico calls “the mega-donor summits organized by the Koch brothers.” Koch-funded organizations intend to spend well over $200 million on behalf of conservative groups before the November elections. The AEA ad claims that the Obama administration is responsible for the recent surge in gasoline prices. Democratic National Committee (DNC) spokesman Brad Woodhouse says that the Koch brothers are “funding yet another shadowy outside group to defend the interests of Big Oil and protect their own tax breaks and profits with [Republican presumptive presidential nominee] Mitt Romney being the ultimate beneficiary.” The DNC and the Obama campaign have targeted the Koch brothers in previous statements, calling them some of the “secretive oil billionaires” funding the Romney campaign. AEA spokesman Benjamin Cole accuses the DNC and the Obama campaign of playing “shadowy” politics intended “to delay, deny, and deceive the American public about the president’s record on energy prices.” The AEA ad is not connected to the Romney campaign, Cole says, and adds that the ad campaign is not intended to benefit Romney, stating, “[W]e have been public and unashamed of criticizing Mitt Romney or any candidate for office, Republican or Democrat, that doesn’t support free market energy solutions.” Cole refuses to confirm that the Koch brothers are financing the ad campaign, instead saying: “People ask if Koch is behind this ad. There is only one person behind this ad and it is President Barack Obama.” The Koch brothers are becoming increasingly involved in the 2012 presidential campaign, sending representatives like Marc Short to network with former Bush advisor Karl Rove, who runs the super PAC American Crossroads and its sibling Crossroads GPS. [Politico, 3/29/2012]

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

Timeline Tags: Civil Liberties, 2012 Elections

Logo of American Crystal Sugar, one of the corporate donors making contributions to Steve King’s re-election campaign.Logo of American Crystal Sugar, one of the corporate donors making contributions to Steve King’s re-election campaign. [Source: ACSC]US Representative Steve King (R-IA) tells an audience at a town hall meeting in Jefferson, Iowa, that he has accepted no corporate contributions for his campaign. Yet King has indeed accepted over $100,000 in corporate contributions. The denial comes after a constituent asks him about the impact of the 2010 Citizens United decision, which allows unlimited contributions by corporations and labor unions (see January 21, 2010). The constituent says: “The whole question of what’s wrong with our country here is corruption. Money buying elections. Money buying corporate messages.” King replies: “That’s another thing. I will listen to him. I just want to tell you. I don’t have any corporate contributions into my campaign.” King’s campaign has accepted contributions from the PACs of Koch Industries, American Crystal Sugar, AT&T, Berkshire Hathaway, Exxon, First American Bank, Kirke Financial Services, Mail Services LLC, Mobren Biological, Silverstone Group, Sukup Manufacturing, and a large number of corporate trade associations. Scott Keyes of the liberal news Web site Think Progress writes: “King is technically correct that corporations haven’t contributed directly to his campaign. Federal election law (see March 27, 2002) prohibits corporations from making such contributions to any candidate. However, corporations establish their own PACs precisely so that their leadership and investors can donate to candidates. King’s campaign has benefited immensely from these corporate PACs, receiving more than $100,000 for his reelection bid.” [Think Progress, 4/25/2012; Center for Responsive Politics, 7/9/2012]

Entity Tags: Kirke Financial Services, Berkshire Hathaway, American Crystal Sugar, AT&T, First American Bank, Sukup Manufacturing, Scott Keyes, Silverstone Group, Koch Industries, Mail Services LLC, Steve King, Mobren Biological, ExxonMobil

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties, 2012 Elections

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

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

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

Timeline Tags: Civil Liberties, 2012 Elections

The New York Times reports that wealthy liberal donors, after months of relative inactivity, are gearing up to make large donations on behalf of Democratic candidates. But unlike their Republican counterparts, these donors are not going to give millions to super PACs. Instead, the Times reports, they will give most of their money to organizations focused on grassroots organizing, voter registration, and “get out the vote,” or GOTV, efforts. The Times reports, “The departure from the conservatives’ approach, which helped Republicans wrest control of the House in 2010, partly reflects liberal donors’ objections to the Supreme Court’s Citizens United decision (see January 21, 2010), which paved the way for super PACs and unbridled campaign spending.” Also, donors and strategists do not believe they can go head-to-head with wealthy Republican donors who are giving to groups like American Crossroads and Americans for Prosperity (AFP). Instead, they say they feel Democrats can press an advantage in grassroots organizing. Rob Stein of the Democracy Alliance, a group of liberal donors, says that while super PACs “are critically important,” local efforts and social-media outreach “can have an enormous impact in battleground states in 2012.” Billionaire financier and philanthropist George Soros (see January - November 2004) will give $1 million to America Votes, an organization that coordinates political actions for environmental, abortion rights, and civil rights groups, and another $1 million to American Bridge 21st Century, a super PAC that focuses on election research. Soros has not yet given significantly during the 2012 cycle. A Soros spokesperson, Michael Vachon, says: “George Soros believes the Supreme Court’s decision in Citizens United opened the floodgates to special interests’ paying for political ads. There is no way those concerned with the public interest can compete with them. Soros has always focused his political giving on grass-roots organizing and holding conservatives accountable for the flawed policies they promote. His support of these groups is consistent with those views.” President Obama’s reelection campaign is in the process of unleashing a $25 million ad campaign against the presumptive Republican nominee, Mitt Romney (R-MA), directed and financed by the campaign itself. Romney and other Republicans have relied more heavily on “independent” spending by American Crossroads, AFP, and other “third party” groups. An Obama-aligned super PAC, Priorities USA Action, has raised relatively little money in comparison to its Republican counterparts, though it has been active in some battleground states (see May 2, 2012). Obama’s opposition to super PACs and his reluctance to have his campaign rely on their efforts (see January 18, 2012) has slowed super PAC fundraising efforts on his behalf, though he has recently given his approval for the group to operate at maximum capacity (see February 6, 2012). David Brock, the founder of American Bridge 21st Century and the liberal watchdog organization Media Matters for America, says, “The idea that we’re going to engage in an arms race on advertising with the Republicans is not appealing to many liberal donors.” While Priorities USA and two other groups founded to help Democrats in Congress remain on the list of organizations that the Democracy Alliance recommends to its members, Robert McKay, the chairman of the group and a board member of Priorities USA, says that much of the money expected to be spent this year—up to $100 million—by the group’s donors will go to organizing and research, and far less to television advertising. “There is a bias towards funding infrastructure as it relates to the elections,” McKay says. “That means get-out-the-vote efforts” aimed at minority voters, women, and younger voters. Organizations involved in Democracy Alliance include Catalist, a voter database organization; ProgressNow, which organizes Internet-based groups in different states; and the newly created Latino Engagement Fund, an organization that works to organize Latino voting on behalf of Democrats. Groups outside Democracy Alliance will also be involved, particularly labor unions and advocacy groups such as the Sierra Club. San Francisco philanthropist Steve Phillips, who intends to spend some $10 million on efforts to increase turnout among Latino voters, says: “You can dump 10 or 20 million in TV ads in Ohio and try to reach the persuadable swing voters there, or you can up voter turnout among Latinos in Colorado and Arizona and win that way. It’s much cheaper.” [New York Times, 5/7/2012]

Entity Tags: American Crossroads, Steve Phillips, Willard Mitt Romney, 2012 Obama presidential election campaign, Robert McKay, American Bridge 21st Century, Rob Stein, New York Times, Americans for Prosperity, David Brock, Priorities USA Action, Michael Vachon, America Votes, George Soros, Democracy Alliance

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

Twenty-one states and the District of Columbia join a brief filed by New York Attorney General Eric Schneiderman asking the US Supreme Court to reaffirm Montana’s ban on corporate spending. The brief is in response to an upcoming Court hearing on the Montana Supreme Court’s upholding of the Montana ban, which contradicts the 2010 Citizens United ruling (see January 21, 2010, December 30, 2011 and After, January 4, 2012, February 10-17, 2012, and April 30, 2012). The brief is signed by Schneiderman, a Democrat, and 22 other attorneys general, both Democrats and Republicans. In the brief, Schneiderman writes, “The Montana law at issue here, like many other state laws regulating corporate campaign expenditures in state and local elections, is sharply different from the federal law struck down in Citizens United, and the Court need not revise its ruling in Citizens United in order to sustain the challenged Montana law.” Referring to briefs asking the Court to reverse the Montana high court ruling without a review, Schneiderman writes, “Even if the challenged Montana law were identical to the federal statute struck down in Citizens United—and, as shown below, it is far from identical—disposing of this case on the merits would require a fully considered analysis that takes these constitutional distinctions into account.” The states with Democratic attorneys general include Arkansas, California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, Nevada, New Mexico, New York, North Carolina, Rhode Island, Vermont, and West Virginia. States with Republican attorneys general include Idaho, Utah, and Washington. [International Business Times, 5/21/2012; Think Progress, 5/21/2012]

Entity Tags: US Supreme Court, Montana Supreme Court, Eric Schneiderman

Timeline Tags: Civil Liberties

Senator Sheldon Whitehouse (D-RI) tells a reporter that the Supreme Court issued its 2010 Citizens United decision (see January 21, 2010) in part because none of its members have ever been elected officials and thusly they have no personal experience with the corruption that comes with unregulated money being allowed into political campaigns. The Court’s majority opinion found that “independent expenditures, including those made by corporations, do not give rise to corruption or the appearance of corruption.” Whitehouse says in part: “Unfortunately you had the five right-wing judges, none of whom have ever run for any office ever and have zero political experience between the five of them, offering opinions about what money can do in elections.… So clearly the finding of fact in Citizens United that unlimited corporate spending cannot either increase the risk of corruption or increase the appearance to the public that there’s corruption is ludicrous.… The president asked me who I thought, you know, what were the characteristics of somebody that should be appointed to the Court, and I said I think it should be somebody who has some actual political experience out there so that they are not operating in this political arena with absolutely no knowledge. Even if they wanted to come to the result that Citizens United came to, I think those judges would have had a hard time getting there if they’d had actual practical political experience because they would have known what a preposterous finding they were making.” Legal scholar Ian Millhiser of the liberal news Web site Think Progress writes: “The current Supreme Court includes eight former US Court of Appeals judges and one former law school dean. Four of the five current justices responsible for Citizens United served as political appointees in Republican administrations. The justices who decided Brown v. Board of Education (see May 17, 1954), by contrast, included one former governor, three former US senators, and one former state lawmaker.” [Think Progress, 5/23/2012]

Entity Tags: Ian Millhiser, US Supreme Court, Sheldon Whitehouse

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties

Retired Supreme Court Justice John Paul Stevens lambasts the Court’s 2010 Citizens United decision (see January 21, 2010), in which he strongly dissented (see May 14, 2012). Stevens has criticized the decision in earlier statements. He continues that trend in a speech given to the Clinton School of Public Service at the University of Arkansas. He agrees with President Obama’s warning that “foreign entities” could bankroll US elections (see January 27-29, 2010 and October 2010), and challenges the Court to prove that such concerns are “not true,” as Justice Samuel Alito famously mouthed during Obama’s speech at the time by reconciling the Court’s finding that the First Amendment “generally prohibits the suppression of political speech based on the speaker’s identity” with its subsequent decision to uphold a ban on campaign spending by non-citizens in Bluman v. Federal Election Commission (see August 8, 2011). Alito’s reaction to Obama’s warning “persuade[s] me that that in due course it will be necessary for the Court to issue an opinion explicitly crafting an exception that will create a crack in the foundation of the Citizens United majority opinion,” Stevens says. In doing so, “it will be necessary to explain why the First Amendment provides greater protection to the campaign speech of some non-voters than to that of other non-voters.” Stevens is referring to corporations and labor unions as “non-voters,” as is the Canadian citizen who filed the Bluman lawsuit. The Bluman case, Stevens says, “unquestionably provided the Court with an appropriate opportunity to explain why the president had misinterpreted the Court’s opinion in Citizens United. [T]he Court instead took the surprising action of simply affirming the district court without comment and without dissent.” Stevens says the two cases pose a legal conundrum—“notwithstanding the broad language used by the majority in Citizens United, it is now settled, albeit unexplained, that the identity of some speakers may provide a legally acceptable basis for restricting speech.” At some point, Stevens says, the Court will have to grapple with the effects of the decision. “I think it is likely that when the Court begins to spell out which categories of non-voters should receive the same protections as the not-for-profit Citizens United advocacy group, it will not only exclude terrorist organizations and foreign agents, but also all corporations owned or controlled by non-citizens, and possibly even those in which non-citizens have a substantial interest. Where that line will actually be drawn will depend on an exercise of judgment by the majority of members of the Court, rather than on any proposition of law identified in the Citizens United majority opinion.” Stevens does not explicitly reference the upcoming Court case where it will have to rule on Montana’s ban on corporate spending (see December 30, 2011 and After, January 4, 2012, February 10-17, 2012, and April 30, 2012), but he says the Court was wrong to overturn a precedent that allows states to bar corporate spending from outside their borders. For states such as Montana with those laws in effect, “those corporate non-voters were comparable to the non-voting foreign corporations that concerned President Obama when he criticized the Citizens United majority opinion.” He says, “If the First Amendment does not protect the right of a graduate of Harvard Law School to spend his own money to support the candidate of his choice simply because his Canadian citizenship deprives him of the right to participate in our elections, the fact that corporations may be owned or controlled by Canadians—indeed, in my judgment, the fact that corporations have no right to vote—should give Congress the power to exclude them from direct participation in the electoral process.” [Huffington Post, 5/30/2012; University of Arkansas Clinton School of Public Service, 5/30/2012 pdf file]

Entity Tags: Samuel Alito, Barack Obama, Citizens United, US Supreme Court, Clinton School of Public Service, John Paul Stevens

Timeline Tags: Civil Liberties

Politico reports that Republican super PACs and other outside groups are coordinating under the leadership of what it calls “a loose network of prominent conservatives, including former Bush political advisor Karl Rove, the oil billionaire Koch brothers, and Tom Donohue of the US Chamber of Commerce,” to spend an unprecedented $1 billion between now and November to help Republicans win control of the White House and Congress. The plans include what Politico calls “previously undisclosed plans for newly aggressive spending by 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, February 14, 2011, February 29, 2012, and Late March 2012) to organize funding for county-by-county operations in key states, using tools such as the voter database Themis (see April 2010 and After) to build “sophisticated, county-by-county operations in key states.” The Kochs’ organizations have upped their spending plans to $400 million. Just the Kochs’ spending will outstrip the $370 million spent by the 2008 John McCain presidential campaign, and the $1 billion will exceed the $750 million spent by the 2008 Barack Obama campaign. The “independent” super PAC supporting the presidential campaign of Mitt Romney, Restore Our Future (ROF—see June 23, 2011 and January 31, 2012), plans on spending $100 million on the campaign to unseat Obama. American Crossroads and Crossroads GPS, the two Rove-led groups coordinating much of the Republican spending efforts, plan to spend $300 million on efforts to elect Romney and other Republicans (see February 21, 2012). The raised millions will go to, among other things, television, radio, and Web advertising; voter turnout efforts; mail and telephone appeals; and absentee- and early-balloting drives. The $1 billion is entirely “outside” spending. Romney and the Republican National Committee (RNC) intend to raise some $800 million on their own. According to Politico: “The Republican financial plans are unlike anything seen before in American politics. If the GOP groups hit their targets, they likely could outspend their liberal adversaries by at least two-to-one, according to officials involved in the budgeting for outside groups on the right and left.… The consequences of the conservative resurgence in fundraising are profound. If it holds, Romney and his allies will likely outraise and outspend Obama this fall, a once-unthinkable proposition. The surge has increased the urgency of the Democrats’ thus-far futile efforts to blunt the effects of a pair of 2010 federal court rulings—including the Supreme Court’s seminal Citizens United decision (see January 21, 2010)—that opened the floodgates for limitless spending, and prompted Obama to flip-flop on his resistance to super PACs on the left.” The super PAC supporting Obama’s re-election, Priorities USA Action, has not raised anywhere near the amount of money being garnered by Rove and the Koch brothers, partly because of Obama’s initial reluctance to have such groups operating on his behalf (see January 18, 2012). US labor unions may be able to raise some $200 to $400 million on behalf of Obama and other Democrats. The AFL-CIO’s Michael Podhorzer says his organization does not intend to try to match the Republican donor groups, but instead will spend most of its money reaching out to union members and other workers: “Progressives can’t match all the money going into the system right now because of Citizens United, so we have to have a program that empowers the worker movement.” Politico notes that billionaire Sheldon Adelson single-handedly kept the Newt Gingrich (R-GA) primary challenge afloat (see December 1, 2011, December 19, 2011, January 3, 2012, January 6, 2012, January 23, 2012, February 21, 2012, February 21, 2012, March 26, 2012, April 22, 2012, and May 2, 2012), and billionaire Foster Friess (see February 16-17, 2012) was the key funder for Republican primary challenger Rick Santorum (R-PA). Outside money helped “tea party” challengers defeat incumbents like Senator Richard Lugar (R-IN) in the 2012 primaries (see February 21, 2012). “Republicans have taken one big lesson away from campaigns conducted to date in 2011 and 2012,” Politico states: “outside money can be the difference-maker in elections.” [Politico, 5/30/2012]

Entity Tags: Foster Friess, Sheldon Adelson, Tom Donohue, American Crossroads GPS, American Crossroads, David Koch, Richard Lugar, Rick Santorum, Republican National Committee, Karl C. Rove, Michael Podhorzer, Newt Gingrich, Priorities USA Action, Charles Koch, Politico, Restore Our Future

Timeline Tags: Civil Liberties, 2012 Elections

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

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

Timeline Tags: Civil Liberties, 2012 Elections

YG Network logo.YG Network logo. [Source: BizPacReview]The YG Network, a Republican political organization nicknamed the “Young Guns,” tells Republican House members that if they vote for specific House proposals, they will be rewarded by advertisements on their behalf to be paid for by YG. The organization is run by former aides to House Majority Leader Eric Cantor (R-VA), but denies having any ties to the lawmaker. Congressional leaders such as Cantor are not permitted to offer anything in exchange for a vote. YG is launching a radio advertising campaign that will run ads praising Republican House members who voted with Cantor to repeal a tax on medical devices, and advises those members to “keep voting to stop tax increases arriving next year,” referring to a group of tax rates that will expire at the end of 2012. An aide says the YG Network is trying to “leverage the floor schedule and votes scheduled by Cantor to help members at home.” According to Politico, “[i]f a [Republican House] member—specifically, an ally of Cantor and Majority Whip Kevin McCarthy (R-CA)—votes for a leadership priority, they can look forward to an ad in their district.” The aide says that YG hopes the effort becomes “another tool in the belt to call attention to members and help encourage cohesion on difficult-to-whip votes.” YG advisor Brad Dayspring explains: “For too long, a lot of the good legislation that the House has passed has gone unnoticed because [Senate Democrats] have sat on [their] hands for a year and a half. Too often, the only outside group activity occurring back in districts comes in the form of an attack against new conservative lawmakers. The YG Network hopes to change the conversation by highlighting the positive work that the new generation of conservatives have done, calling attention to legislative votes that would help create jobs, remove the red tape weighing down small business, and to repeal ‘Obamacare.’” A number of “Young Guns” legislators will receive radio ads on their behalf. [Politico, 6/10/2012] Paul Ryan of the Campaign Legal Center says that what YG is doing is probably legal, but, he adds, “many would characterize the way Washington politics has long worked as ‘legalized bribery.’” The Supreme Court’s 2010 Citizens United ruling (see January 21, 2010) is what makes activities like this possible, he says: “When you allow unlimited special interest money in politics, this type of behavior should be expected. Criticism is fair, but nevertheless, it’s predictable. This is the world that this Supreme Court majority has given us with the Citizens United decision. It’s troubling, but entirely predictable. Even more troubling is the likelihood of conversations behind closed doors—threats of huge corporate-funded independent spending campaigns made [for those who don’t act in the corporation’s interest on a given piece of legislation]. And much of it, we will never hear about.” Ryan warns that he expects lobbyists to meet with legislators and say, “you saw what we did to so-and-so,” referring to a lawmaker who did not behave in the interest of the lobbyist’s client. Ryan says the lobbyist will ask, “Do you want that to happen to you?” [Think Progress, 6/11/2012]

Entity Tags: Brad Dayspring, YG Network, Kevin McCarthy, Paul S. Ryan, Eric Cantor

Timeline Tags: Civil Liberties, 2012 Elections

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

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

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

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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