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Context of '1984 and After: Oil Billionaires Found First of Many ‘Grassroots’ ‘Citizens’ Organizations'

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

The “astroturf” lobbying organization Citizens for a Sound Economy (see 1984 and After) founds a spinoff group, Citizens for the Environment. This group will quickly begin calling acid rain and other environmental problems “myths.” An investigation by the Pittsburgh Post-Gazette discovers that the organization has “no citizen membership of its own.” (Mayer 8/30/2010)

Citizens for a Sound Economy (CSE), an “astroturf” advocacy organization funded by the Koch brothers (see 1984 and After), is accused of breaking campaign laws to support the Bush re-election campaign. Oregon’s CSE branch had attempted to get consumer advocate Ralph Nader on the presidential ballot, in an attempt to dilute Democratic support for presidential candidate John Kerry (D-MA). Critics argue that it is illegal for a tax-exempt organization such as CSE to donate its services for partisan purposes. The Federal Election Commission (FEC) dismisses a complaint brought against the organization. (Mayer 8/30/2010)

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

Mark Ames.Mark Ames. [Source: Guardian]CNBC’s Rick Santelli has become something of a superstar among conservative media pundits and others exasperated by the Obama economic bailouts, after engaging in a purportedly impromptu “rant” during an on-air broadcast (see February 19, 2009). Investigative reporters Mark Ames and Yasha Levine discover that Santelli’s rant may have been a pre-planned incident timed to coincide with the launch of a so-called “tea party movement” predicated on opposing the Obama administration and supporting conservative and Republican ideas and agendas. In the hours and days following Santelli’s appearance on CNBC, the authors write, “[a] nationwide ‘tea party’ grassroots Internet protest movement has sprung up seemingly spontaneously, all inspired by Santelli, with rallies planned today in cities from coast to coast to protest against Obama’s economic policies.”
Connections to the Koch Family - Ames and Levine write that Santelli’s CNBC “rant” was “a carefully-planned trigger for the anti-Obama campaign. In PR terms, his February 19th call for a ‘Chicago Tea Party’ was the launch event of a carefully organized and sophisticated PR campaign, one in which Santelli served as a frontman, using the CNBC airwaves for publicity, for the some of the craziest and sleaziest right-wing oligarch clans this country has ever produced.” Ames and Levine are referring to the Koch family, headed by Fred Koch (see 1940 and After), the billionaire co-founder of the extremist John Birch Society (see March 10, 1961 and December 2011) and whose sons are heavy donors to right-wing think tanks and advocacy groups such as the Cato Institute (see 1977-Present) and FreedomWorks (see 1984 and After). - On the air, Santelli said, “We’re thinking of having a Chicago tea party in July, all you capitalists who want to come down to Lake Michigan, I’m gonna start organizing.” Within minutes, Matt Drudge of the Drudge Report had posted headlines about the “tea party” rant on his Web site. Within hours, a new Web site,, had appeared, featuring a YouTube video of Santelli’s rant and calling itself the official home of the Chicago Tea Party. The domain name had been registered months before by right-wing media figure Zack Christenson (see August 2008), but had remained dormant until after Santelli spoke on CNBC. Ames and Levine note that Christenson bought the domain around the same time that Milt Rosenburg, the Chicago talk show host whom Christenson produces, began attempting to link then-presidential candidate Barack Obama with “left-wing terrorist” William Ayers (see August 2008). Ames and Levine write: “That Rosenberg’s producer owns the ‘’ site is already weird—but what’s even stranger is that he first bought the domain last August, right around the time of Rosenburg’s launch of the ‘Obama is a terrorist’ campaign. It’s as if they held this ‘Chicago tea party’ campaign in reserve, like a sleeper-site. Which is exactly what it was.”
The Sam Adams Alliance - The Web site, Ames and Levine report, is part of a larger network of conservative Web sites set up over the last few months under the auspices of the “Sam Adams Alliance” (SAA), an organization linked to the Koch family and to FreedomWorks, a public relations group funded by Koch and headed by former Republican House Majority Leader Dick Armey (see April 14, 2009). The SAA is a Chicago-area libertarian/conservative group named for Samuel Adams, who led the Boston Tea Party protest in 1773. (Ames and Levine 2/27/2009) In 2008, the New York Times described the SAA as having “started an ambitious project this year to encourage right-leaning activists and bloggers to get online and focus on local and state issues.” (Phillips 7/19/2008) - Another Web site,, went live on February 19 as well. That site is registered to Eric Odom, a Republican specializing in faux-grassroots PR campaigns sometimes called “astroturf” (see April 15, 2009). Odom has worked with Koch Industries, a large oil and natural gas corporation and the source of the Koch family fortune, in supporting offshore oil-drilling legislation. Odom was, until January 2009, the “new media coordinator” for the Sam Adams Alliance. Upon his departure, the SAA removed Odom’s name from its Web site. The SAA also removed any mention of Koch’s funding, or any other connections between Koch and the organization, from its site. Two of the SAA’s board members, Eric O’Keefe and Joseph Lehman, are tied both to Koch and to FreedomWorks.
FreedomWorks - In the hours after Santelli’s rant, FreedomWorks posted a large photo of Santelli on its Web site’s front page with the caption: “Are you with Rick? We are. Click here to learn more.”
Other Sites - In the hours after Santelli’s rant, other Web sites such as, promoting a tea party support group that purports to be a citizen-launched organization “created by a few friends who were outraged by the bailouts” and headed by “Evan and Duncan,” and numerous pro-tea party Facebook pages, were launched. is sponsoring a $27,000 prize for an “anti-bailout video competition.” Ames and Levine ask: “Who are Evan and Duncan? Do they even really exist?”
No Connections on the Surface - Ames and Levine note that the numerous Web sites and Facebook pages have remarkable similarities in language and appearance, “as if they were part of a multi-pronged advertising campaign planned out by a professional PR company. Yet, on the surface, they pretended to have no connection. The various sites set up their own Twitter feeds and Facebook pages dedicated to the Chicago Tea Party movement. And all of them linked to one another, using it as evidence that a decentralized, viral movement was already afoot. It wasn’t about partisanship; it was about real emotions coming straight from real people.”
Santelli and the Tea Party Organizers - Ames and Levine ask why Santelli, and CNBC, would “risk their credibility, such as it is, as journalists dispensing financial information in order to act as PR fronts for a partisan campaign.” Santelli’s contract with CNBC is about to expire, they note. Until the “tea party” rant, Santelli was an obscure financial commentator with few prospects. Now, though, he is a “hero” of the right. As another Chicago tea party organization, the Daily Bail, wrote on its site: “Rick, this message is to you. You are a true American hero and there are no words to describe what you did today except your own. Headquartered nearby, we will be helping the organization in whatever way possible.” Ames and Levine speculate that Santelli may have been brought into the fold by one of his CNBC colleagues, Lawrence Kudlow, who himself has strong connections to FreedomWorks. (Ames and Levine 2/27/2009) Steve Megremis of the Daily Bail will call Ames and Levine’s allegations about his Web site’s involvement “categorically untrue,” writing: “It’s unfortunate because I believe that the article did some great investigative work and then at the end they threw me under the bus for no apparent reason. Apparently, the authors just assumed we were part of this conspiracy because of my own personal excitement about the prospect of a mid-summer tea party.” Megremis will post a response on his site, but the response will soon disappear. (Barry Ritholtz 2/28/2009)
Playboy Removes Article - By March 2, Playboy will remove the Ames and Levine article from its Web site. No explanation is offered. The article will instead become available on a Web site called “The Exiled,” which bills itself as an “alternative” press outlet. (Jeffrey Feldman 3/2/2009)

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

Attorney Karl Crow, one of the leaders of the Themis project.Attorney Karl Crow, one of the leaders of the Themis project. [Source: Little Sis (.org)]Charles and David Koch, the oil billionaires who are behind the conservative tea party movement (see 1940 and After, 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, Late 2004, October 2008, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, September 2010, August 17, 2011 and October 4, 2011), begin to build a huge, nationwide database of conservative voters that they intend to use to drive conservative votes in elections, beginning with the 2012 Republican primaries and on to the November 2012 general presidential election. The database is nicknamed “Themis,” after the Greek goddess of divine law and order who imposes order on human affairs. According to The Guardian’s Ed Pilkington, “the Koch brothers are close to launching a nationwide database connecting millions of Americans who share their anti-government and libertarian views, a move that will further enhance the tycoons’ political influence and that could prove significant in next year’s presidential election.” Pilkington writes that Themis will bring together “the vast network of alliances” the brothers have formed over the last 20 years. (Vogel 10/10/2011; Pilkington 11/7/2011) Patrick Glennon of In These Times writes: “Email lists, phone numbers, and other contact information from disperse sources will merge into a comprehensive and streamlined political weapon. Purportedly, the database will also include extensive information relating to occupation and income levels, useful details for targeted fundraising initiatives.” (Vogel 10/10/2011) The database begins in April 2010, and is expected to be completed and functional by the end of 2011. Few details of the project are known; development leader Karl Crow, a Washington lawyer and longtime Koch advisor, refuses to speak about it, as do media representatives of Koch Industries. A member of a Koch affiliate organization who specializes in the political uses of new technology says in November 2011 that the project is almost ready to go live: “They are doing a lot of analysis and testing. Finally they’re getting Themis off the ground.” The project is intended to, Pilkington writes, “bring together information from a plethora of right-wing groups, tea party organizations, and conservative-leaning thinktanks. Each one has valuable data on their membership—including personal email addresses and phone numbers, as well as more general information useful to political campaign strategists such as occupation, income bracket, and so on. By pooling the information, the hope is to create a data resource that is far more potent than the sum of its parts. Themis will in effect become an electoral roll of right-wing America, allowing the Koch brothers to further enhance their power base in a way that is sympathetic to, but wholly independent of, the Republican Party.” The specialist tells Pilkington, “This will take time to fully realize, but it has the potential to become a very powerful tool in 2012 and beyond.” Themis is modeled in part on a project called Catalyst, a voter list that compiled and shared data about progressive groups and campaigns (see Late 2004 and After) and helped Democrats regain momentum after the 2004 defeat of presidential candidate John Kerry (D-MA). (Vogel 10/10/2011; Pilkington 11/7/2011; Glennon 11/8/2011) The 2008 Obama campaign used social media outreach techniques to augment Catalyst’s database. Themis apparently incorporates many of those social-media and other interactive features in its construction. (Lachkovic 12/19/2011) Josh Hendler, the former director of technology of the Democratic National Committee (DNC), tells Pilkington that Themis could do for the GOP what Catalyst helped do for the Democrats. “This increases the Koch brothers’ reach,” he says. “It will allow them to become even greater coordinators than they are already—with this resource they become a natural center of gravity for conservatives.” Mary Boyle of the political watchdog group Common Cause says of the reclusive brothers, “What makes them unique is that they are not just campaign contributors; they are a vast political network in their own right.” Themis will only deepen the Koch brothers’ control of American right-wing politics, Pilkington observes. Politico’s Kenneth Vogel writes that the Kochs intend to spend at least $200 million in 2012 on the Republican presidential campaign and other related activities. Pilkington writes: “Their potential to sway the electorate through the sheer scale of their spending has been greatly enhanced by Citizens United, last year’s controversial ruling by the US Supreme Court that opened the floodgates to corporate donations in political campaigns. The ruling allows companies to throw unlimited sums to back their chosen candidates, without having to disclose their spending. That makes 2012 the first Citizens United presidential election, and in turn offers rich pickings to the Koch brothers.” Themis will help the Kochs “micro-target” voters and potential fundraisers. Pilkington writes that it is reasonable to assume that Koch-funded lobbying organizations such as Americans for Prosperity and FreedomWorks are part of Themis, as are Koch-funded think tanks such as the Heritage Foundation. “Between them, they have tentacles that extend to millions of voters,” Pilkington writes. Liberal reporter and blogger Lee Fang says the impact of Themis and the Koch funding on the 2012 presidential campaign will be immense: “This will be the first major election where most of the data and the organizing will be done outside the party nexus. The Kochs have the potential to outspend and out-perform the Republican Party and even the successful Republican candidate.” (Vogel 10/10/2011; Pilkington 11/7/2011; Glennon 11/8/2011)

The exterior of the St. Regis Resort in Aspen, Colorado.The exterior of the St. Regis Resort in Aspen, Colorado. [Source: Real Aspen (.com)]The reclusive but highly influential Charles Koch, of the Koch brothers oil empire (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, and July 3-4, 2010), holds a private meeting with some 200 wealthy financial and political figures at the exclusive St. Regis Resort in Aspen, Colorado. The meeting is designed to bring the participants together to combat what Koch calls “the threats posed to American freedom and prosperity” by Democrats and the Obama administration. To that end, many of the sessions in the two-day event target methods and plans to influence and manipulate the upcoming 2010 midterm elections. The meeting is highly secretive, with participants warned not to discuss the proceedings with anyone, especially members of the media, but in August, the liberal news Web site Think Progress will obtain a copy of a September 2010 memo from Koch that contains the June 2010 event program. The various events include:
bullet a seminar on “The Bankrupting of America”;
bullet a seminar on the “regulatory assault” on environmental concerns and how to further business goals by defeating environmental regulations;
bullet a seminar on how to influence universities and colleges to “advance liberty”;
bullet a seminar on how to “micro-target” the electorate in order to win elections for conservative Republican candidates;
bullet a seminar on “The Threats to American Freedom and Prosperity” conducted by Koch himself;
bullet “Understanding the Threats We Face,” a seminar moderated by Wall Street Journal reporter Stephen Moore (see May 6, 2006), Ramesh Ponnuru of the National Review, Phil Kerpen of Americans for Prosperity (AFP—see Late 2004), and Peter Wallinson of the far-right American Enterprise Institute (AEI);
bullet a seminar on “An Integrated Strategy to Face These Threats,” moderated by Koch’s senior assistant Richard Fink;
bullet an evening address, “Is America On the Road to Serfdom?” by former Fox News talk show host Glenn Beck;
bullet a seminar, “We’re Spending Too Much,” on how to lower government spending, conducted by Russ Roberts of the far-right libertarian Mercatus Center;
bullet a seminar, “Understanding This Year’s Electorate,” by journalist and AEI fellow Michael Barone;
bullet a follow-up seminar on how to “Fram[e] the Debate on Spending” for the elections, moderated by members of AEI and the Mercatus Center;
bullet a seminar, “Mobilizing Citizens for November,” featuring Tim Phillips, the head of AFP (see August 6, 2009) and Karl Crow, the head of Themis, the Koch-funded computer database being used in “micro-targeting” voters (see April 2010 and After);
bullet a seminar hosted by Arthur Brooks of AEI on how to frame the “fight” as one between “free enterprise and Big Government”;
bullet a seminar on how best to target participants’ philanthropic gifting;
bullet a seminar on “reforming” K-12 public and charter schools;
bullet a seminar on impacting judicial elections in several key states;
bullet a seminar on transitioning from the 2010 elections to the 2012 presidential elections and how “supporters of economic freedom” can “start planning today” for that election;
bullet a final evening address, “What’s Ahead for America?” by noted neoconservative columnist and Fox News pundit Charles Krauthammer.
The event features David Chavern, a senior official at the US Chamber of Commerce, one of the entities contributing the most funding to conservative political organizations (see August 2, 2010, September 13-16, 2010, and October 2010). Think Progress’s Lee Fang will write: “In an election season with the most undisclosed secret corporate giving since the Watergate-era, the memo sheds light on the symbiotic relationship between extremely profitable, multi-billion dollar corporations and much of the conservative infrastructure. The memo describes the prospective corporate donors as ‘investors,’ and it makes clear that many of the Republican operatives managing shadowy, undisclosed fronts running attack ads against Democrats were involved in the Koch’s election-planning event.” Many of the “investors” listed as attending or participating in the events include executives from health care corporations; executives from fast-food and other food-industry executives who have fought against providing health insurance to their employees; an array of banking and financial executives; and a number of energy industry executives. Fred Malek, who serves as the top fundraiser for a $56 million attack ad campaign against Democrats (see Mid-October 2010), attends, as does Heather Higgins of the Independent Women’s Forum, another organization that has spent millions opposing health-care reform. Many of the election-focused seminars address how to take advantage of the Citizens United ruling that lifted restrictions on corporate election spending (see January 21, 2010). The Aspen meeting, as with earlier meetings, is managed by Kevin Gentry, a Koch Industries executive and Washington lobbyist. (Fang 8/23/2010; Koch 9/24/2010 pdf file)

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

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

Mother Jones columnist Kevin Drum compares the “tea party” movement to earlier organizations, each formed, he writes, to oppose Democratic presidencies. “[T]oo many observers mistakenly react to the tea party as if it’s brand new, an organic and spontaneous response to something unique in the current political climate,” he writes. “But it’s not. It’s not a response to the recession or to health care reform or to some kind of spectacular new liberal overreach. It’s what happens whenever a Democrat takes over the White House. When FDR was in office in the 1930s, conservative zealotry coalesced in the Liberty League (see August 23, 1934 and After). When JFK won the presidency in the ‘60s, the John Birch Society flourished (see November 1963). When Bill Clinton ended the Reagan Revolution in the ‘90s, talk radio erupted with the conspiracy theories of the Arkansas Project. And today, with Barack Obama in the Oval Office, it’s the tea party’s turn.” While differences between the various groups are substantive, Drum writes, the similarities are overwhelming. Drum notes that industrialist Fred Koch, an early backer of the Birchers (see 1940 and After), gave way to his sons, David and Charles Koch, who helped launch the organization that would become FreedomWorks and Americans for Prosperity, both of which are major funders and organizers of the tea party movement (see 1979-1980 and 1984 and After). Tea partiers rely on a 50-year-old radical reinterpretation of the Constitution, W. Cleon Skousen’s The 5000 Year Leap; Skousen’s anti-Communist polemics were popular with the Birchers. And Robert Welch, the founder of the John Birch Society (JBS—see March 10, 1961 and December 2011), believed that the 17th Amendment, which affirms the direct election of US senators, was what Drum calls “a poisonous concentration of power in the federal government.” Tea partiers and Fox News hosts hawk this same theory today (see October 16, 2009, April 8, 2010, and June 11, 2010). Drum writes that, far from being motivated by personal economic hardship (tea party supporters tend to be more affluent and less affected by the economic downturn than the average American—see April 14, 2010) or even because of a dislike of President Obama because of his race, the tea party exists because “[e]ver since the 1930s, something very much like the tea party movement has fluoresced every time a Democrat wins the presidency, and the nature of the fluorescence always follows many of the same broad contours: a reverence for the Constitution, a supposedly spontaneous uprising of formerly nonpolitical middle-class activists, a preoccupation with socialism and the expanding tyranny of big government, a bitterness toward an underclass viewed as unwilling to work, and a weakness for outlandish conspiracy theories.”
Constitutional 'Purity' - One similarity is the focus of each group on what they term the “purity” or “sanctity” of the US Constitution, even as they apply their sometimes-radical reinterpretations of constitutional mandates. “The Liberty Leaguers… spoke of it with ‘worshipful intensity,’” Drum writes. “The John Birch Society—which is enjoying a renaissance of sorts today (see July 22, 2007, August 4, 2008, October 10, 2008, April 13, 2009, April 19, 2010, and August 24, 2010)—says of itself, ‘From its earliest days the John Birch Society has emphasized the importance of the Constitution for securing our freedom.’ And… study groups dedicated to the Constitution have mushroomed among tea partiers” (see May 2010).
Fear of 'Creeping Socialism' and Tyranny - Drum writes: “Other shared tropes include a fear of ‘losing the country we grew up in,’ an obsession with ‘parasites’ who are leeching off of hardworking Americans, and—even though they’ve always received copious assistance from business interests and political operatives—a myth that the movement is composed entirely of fed-up grassroots amateurs” (see 1984 and After, Late 2004, January 2009 and After, February 17, 2009, February 19, 2009 and After, March 13, 2009 and After, April 14, 2009, April 15, 2009, May 29, 2009, July 27, 2009, August 4, 2009, August 5, 2009, July 3-4, 2010, and August 30, 2010). Above all, though, is the recurring theme of “creeping socialism and a federal government that’s destroying our freedoms.” The American Liberty League fought to stop the Roosevelt administration from establishing Social Security, the Works Progress Administration (WPA), and what Drum calls an “alphabet soup of new regulatory agencies.” In the 1960s, the John Birch Society (JBS) felt the government was being overrun by Communism and “collectivism.” Drum notes that JBS founder Robert Welch’s mantra, “Less government and more responsibility,” echoes central tenets of tea party beliefs. In the 1990s, then-Representative Newt Gingrich (R-GA) became House Speaker in large part because of his opposition to the Clinton administration and his leadership in the right’s battle to defund federal social-net programs. Today, tea partiers echo the JBS in their insistence that Obama is a closet Marxist or socialist, and echo fears from earlier groups that Obama, the Democrat, intends to turn American democracy into a tyranny.
Conspiracy Theories - Drum echoes conservative writer Jonathan Kay by noting the tea partiers’ “insatiable appetite for conspiracy theories” (see February 4-8, 2010). Welch argued that the federal government was bowing to Communist manipulation by fluoridating the water supply (see 1945 and After), but more importantly, promoted the idea that a mysterious group of “insiders” had been running the world since at least 1776, when the Illuminati took over most European governments. The “insiders” continued their influence, Welch avowed, through the years, taking over France after the French Revolution, Russia and other nations after the advent of Communism, and continued to exercise control through such organs as the United Nations, the Council on Foreign Relations, and the Trilateral Commission. The same groups are at the center of many conspiracy theories embraced by numerous tea partiers. Drum points out the fondness of the “anti-Clinton zealots” for their “colorful and ever-growing bestiary of shadowy plots,” most surrounding their belief that Clinton was a rapist, a murderer, and a drug peddler. Similar conspiracy theories were promulgated by the JBS about John Kennedy. “Today’s conspiracy theories are different in detail but no less wacky—and no less widespread,” Drum writes. The “birther” conspiracy theory, which holds that Obama is not a natural-born citizen, is quite popular with tea party supporters, and many more believe that Obama intends to place conservatives such as themselves in internment camps, a theory peddled by the JBS in the early 1960s. And many believe that ACORN (the Association of Community Organizations for Reform Now), the now-defunct community service organization, somehow took control of the Democratic Party, destroyed banks by forcing them to make loans to indigent minorities, crashed the economy, and installed Obama into power.
Effectiveness Improving over Time - Drum writes that each iteration of this right-wing phenomenon is more successful than the last. The Liberty League made no impact whatsoever on President Roosevelt’s 1936 re-election attempt. In 1964, the JBS succeeded in helping right-wing libertarian candidate Barry Goldwater (R-AZ) win the Republican presidential nomination. In the 1990s, Gingrich rode the wave of far-right activism to become speaker of the House, and the activism culminated in the impeachment of President Clinton and the election of President George W. Bush. Drum predicts that the latest wave, the tea party movement, will for all intents and purposes take over the Republican Party. In each iteration, moderate Republicans resisted the wave of right-wing change, but, Drum believes, not enough moderate Republicans exist in any position of power to resist the tea party transformation. The GOP has been shifting ever rightward since the 1970s, Drum notes, and the tea party movement has profited from a transformed media environment, where it can present its ideology almost nonstop on Fox News and rely on social media such as Facebook to connect with new recruits. Drum calls the paradigm shift “the mainstreaming of extremism.” In 1961, Time magazine disparaged the JBS as “tiresome” (see March 10, 1961); in 2009, it hailed Fox News personality Glenn Beck as “gifted.” Moderates have virtually no chance in today’s environment of pushing back against the tea party’s rightward surge. “Unlike the Birchers, or even the Clinton conspiracy theorists, the tea partiers aren’t a fringe part of the conservative movement,” Drum writes. “They are the conservative movement.” Drum believes that even with all the tea party’s current success, it will eventually burn itself out, “while its broader identity becomes subsumed by a Republican Party that’s been headed down the path of ever less-tolerant conservatism for decades. In that sense, the tea party movement is merely an unusually flamboyant symptom of an illness that’s been breeding for a long time.” (Drum 9/2010)

The Guardian reports that American tea party organizations are working with British anti-tax groups, teaching the British to emulate their mass-protest techniques. The Taxpayers’ Alliance (TPA), a British organization that stands for tax cuts and decreased government spending, is being advised by FreedomWorks (see 1984 and After, May 16, 2008, February 16-17, 2009, February 19, 2009 and After, February 27, 2009, March 13, 2009 and After, April 2009 and After, April 14, 2009, April 15, 2009, June 26, 2009, Late July, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 14, 2009, August 19, 2009, August 24, 2010, September 2010 and September 12, 2010), an American lobbying organization that helped found and organize the tea party movement. Today a group of libertarian tea party leaders take part in a London conference with their British and European counterparts, calling their activities “an insurgent campaign” against the US government’s taxation and spending policies. British groups believe they can import tea party tactics to help expand their influence. “You could say our time has come,” says TPA founder Matthew Elliott, whose group has swelled to some 55,000 members. “Take the strikes on the London underground this week and how much they annoyed and inconvenienced people. Couldn’t we get 1,000 people to protest that? We need to learn from our European colleagues and the tea party movement in the US.… It will be fascinating to see whether it will transfer to the UK. Will there be the same sort of uprising?” FreedomWorks consultant Terry Kibbe says she wants to help mobilize British “grassroots” activists in much the same way her organization did in the US, by working through established right-wing lobbying groups to produce campaign materials, train community organizers, and pay for television advertisements. “We have been working to identify groups in Europe that would be amenable to becoming more activist-based, thinktanks that could start activist wings,” she says. “We have worked with the Taxpayers’ Alliance, in Austria and in Italy, and we want to do more.” Another lobbying group heavily involved in the tea party movement, Americans for Prosperity (AFP—see Late 2004, October 2008, January 2009 and After, February 16, 2009, February 16-17, 2009, February 17, 2009, February 19, 2009 and After, April 2009 and After, April 8, 2009, May 29, 2009, July 23, 2009, July 27, 2009, August 5, 2009, August 6, 2009, August 6, 2009, August 10, 2009, August 14, 2009, October 2, 2009, November 2009, February 15, 2010, April 15, 2010, July 3-4, 2010, August 24, 2010, August 30, 2010, September 20, 2010 and August 17, 2011), is also involved in the outreach effort. AFP leader Tim Phillips says: “In the US there is a growing consciousness of the effect of government spending and debt on their own prosperity. It strikes me that many Britons are coming to the same conclusion.” Other right-wing organizations that have funded the London conference include the Ronald Reagan Presidential Foundation, the Cato Institute, and the Heritage Foundation. Representatives from Philip Morris and Imperial Tobacco, along with a British think tank that opposes climate change research, the Global Warming Policy Foundation, take part in the conference. “We need to reach out to a broader audience,” says Barbara Kohn, secretary general of the Hayek Institute in Vienna, one of Europe’s leading low tax campaigners that has also worked with FreedomWorks. “We need to come from various angles. We have all seen what our friends in the tea party movement, and their march, have achieved.” (Booth 9/9/2010)

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

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

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

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

The US Supreme Court strikes down part of an Arizona law providing public funding for political campaigns. In the case of Arizona Free Enterprise Club’s Freedom PAC v. Bennett, the Court rules 5-4 that a provision in Arizona law providing additional funds to publicly funded candidates whose opponents use private donations to outspend them is illegal. Some opponents of unfettered outside spending feared that the Court would use the case to put an end to most, if not all, programs that provide public money to candidates; Think Progress’s Ian Millhiser explains: “Candidates will only agree to accept public financing if it won’t prevent them from running a competitive race. If a state offers only a few thousand dollars in public funds to a candidate whose opponent is backed by tens of millions of corporate dollars, then the non-corporate candidate will have no choice but to raise money on their own. To defend against this problem, Arizona developed a two-tiered public financing system. Candidates receive additional funds if their opponent or corporate interest groups overwhelm them with attack ads, and thus candidates who are determined not to be tainted by the corrupting influence of major donors are not left defenseless.” The ruling will not have an impact on the presidential race, since the federal public financing system lacks such a provision, and since it seems unlikely that either President Obama or his Republican challenger Mitt Romney (R-MA) will use public financing in 2012. The case was brought by two organizations, the Institute for Justice and the Goldwater Institute, on behalf of Arizona state candidates who rejected public funds. The groups argued that the provision infringed on those candidates’ freedom of speech by compelling them to spend less money to avoid triggering the additional funds.
Majority, Minority Opinions - Writing for the majority, Chief Justice John Roberts agreed: “We hold that Arizona’s matching funds scheme substantially burdens protected political speech without serving a compelling state interest and, therefore, violates the First Amendment.” The matching funds provision “imposes an unprecedented penalty on any candidate who robustly exercises [his] First Amendment right[s],” Roberts adds. If the provision is allowed to stand, “the vigorous exercise of the right to use personal funds to finance campaign speech” leads to “advantages for opponents in the competitive context of electoral politics.” The privately funded candidate, Roberts writes, must “shoulder a special and potentially significant burden” when choosing to exercise his First Amendment right to spend funds on behalf of his candidacy. Justice Elena Kagan dissents, writing that the plaintiffs “are making a novel argument: that Arizona violated their First Amendment rights by disbursing funds to other speakers even though they could have received—but chose to spurn—the same financial assistance. Some people might call that chutzpah.”
Reactions - Attorney Bill Maurer, who represented the Institute for Justice, says the ruling “makes clear that the First Amendment is not an exception to campaign finance laws; it is the rule” (see January 30, 1976 and January 21, 2010). He adds that he hopes the ruling will serve as “a clear reminder to government officials that they may not coerce speakers to limit their own speech.” Millhiser writes: “So public financing laws can technically remain, but Arizona’s attempt to protect publicly financed candidates from a wave of corporate attack ads is absolutely forbidden. Moreover, because few candidates can know in advance whether the will face an onslaught of hostile corporate ads, most candidates will hedge their bets and avoid the risk of public financing.… Without unlimited corporate money in elections, most candidates could afford to take public funds unless their opponent had unusual access to wealth or wealthy donors.” Referring to the 5-4 Citizens United decision (see January 21, 2010), Millhiser continues, “In the post-Citizens United America, however, no one is safe from corporate America’s nearly bottomless pool of potential campaign expenditures.” Nick Nyhart of Public Campaign, an organization opposed to the unrestricted influence of outside donors, says, “The five-vote Big Money majority on the court has spoken again in favor of wealthy special interests.” Fred Wertheimer of the campaign finance group Democracy 21 calls the ruling “another seriously misguided campaign finance decision,” but adds “it does not cast any doubt on the continued viability or constitutionality of a number of other existing public financing systems that do not include ‘trigger funds’ or similar provisions.” Common Cause President Bob Edgar says, “This is not the death knell of public financing.” (Vogel 6/27/2011; Millhiser 6/27/2011)
Plaintiffs Financed by Wealthy Conservative Interests - The next day, Think Progress’s Lee Fang will reveal that the two groups who filed the lawsuit, the Institute for Justice and the Goldwater Institute, are financed by wealthy conservative interests. The Institute for Justice, a group dedicated to bringing cases to court in order to deregulate private corporations and to increase the participation of wealthy corporate interests in elections, was created with “seed money” from oil billionaire Charles Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, and September 24, 2010). The Walton Family Foundation, a foundation run by the billionaire family of Arkansas retailer Sam Walton (the founder of Wal-Mart), has donated $1.64 million to the group. The Foundation has written that the Citizens United decision and the Arizona case are two top priorities for the Institute. The Goldwater Institute, one of Arizona’s most prominent conservative think tanks, is focused on rolling back health care reform. The Institute is funded by several foundations, including the Walton and the Charles Koch Foundations. Fang notes that much of the funding for both groups remains undisclosed. (Fang 6/28/2011)

Rolling Stone reporter Ari Berman writes that Republican lawmakers across the nation have launched “an unprecedented, centrally coordinated campaign to suppress the elements of the Democratic vote that helped elect Barack Obama in 2008. Just as Dixiecrats once used poll taxes and literacy tests to bar black Southerners from voting, a new crop of GOP governors and state legislators has passed a series of seemingly disconnected measures that could prevent millions of students, minorities, immigrants, ex-convicts and the elderly from casting ballots.” The initiative is ostensibly to counter the “epidemic” of “voter fraud” that Republicans insist is not only plaguing the nation, but affecting the outcome of elections. (In 2007, the Brennan Center released a report that found the instance of voter fraud vanishingly small, and concluded that more people die by lightning strikes than commit voter fraud—see 2007). Judith Browne-Dianis of the Advancement Project tells Berman, “What has happened this year is the most significant setback to voting rights in this country in a century.” As far back as 1980, powerful Republican operative Paul Weyrich told evangelical leaders: “I don’t want everybody to vote. As a matter of fact, our leverage in the elections quite candidly goes up as the voting populace goes down.” In 2010, the American Legislative Exchange Council (ALEC), a group founded by Weyrich and funded in part by the billionaire Koch brothers (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), began working to disenfranchise hundreds of thousands, perhaps millions, of legitimate voters, almost of all identified as being part of ethnic or gender groups that are more likely to vote Democratic. Thirty-eight states have submitted legislation designed to impede voting “at almost every step of the electoral process.”
Requiring Proof of Citizenship - Kansas and Alabama now require would-be voters to show proof of US citizenship before being allowed to vote.
Impeding Voter Registration - Florida and Texas have passed legislation making it more difficult for groups like the League of Women Voters, an organization widely considered to lean Democratic, to register new voters. Maine repealed same-day registration, which had been in effect since 1973 and had worked to significantly increase voter participation. The Florida legislature passed a law requiring groups to hand in voter registration forms within 48 hours of collection, and imposed what Berman calls “a barrage of onerous, bureaucratic requirements” and serious criminal penalties for those who fail to comply. As a result, many people who once volunteered to help register voters are afraid to do so again. The League of Women Voters says it will no longer operate in Florida, and called Florida’s efforts “good old-fashioned voter suppression.” The Florida statute took effect one day after its passage, under an emergency statute designed for “an immediate danger to the public health, safety or welfare.” Since 2009, Florida has arrested a total of three people for suspected voter fraud. Republican state senator Mike Fasano, one of the few in his party to oppose the restrictions on registrations, says, “No one could give me an example of all this fraud they speak about.”
Curbing Early Voting - Florida, Georgia, Ohio, Tennessee, and West Virginia have cut short early-voting periods. Six states have moved to impose new restrictions on voter registration drives. In 2004, then-Florida governor Jeb Bush (R-FL) said he thought early voting was “great.… It’s another reform we added that has helped provide access to the polls and provide a convenience. And we’re going to have a high voter turnout here, and I think that’s wonderful.” However, his successor Rick Scott (R-FL) does not agree, and neither do most Republicans. After analysis showed what a benefit early voting was for Obama’s numbers, early voting became a key target. Florida has cut early voting days from 14 to 8 days. Ohio, where early voting numbers gave Obama a narrow victory in 2008, has cut its early voting days from 35 to 11, with only limited hours on weekends. Both states have banned voting on the Sunday before elections, when many black churches historically mobilize their constituents. The Early Voting Information Center at Reed College states, “There is no evidence that any form of convenience voting has led to higher levels of fraud.”
Denying Convicted Felons the Right to Vote - Florida and Iowa have passed laws denying convicted felons the right to vote, disenfranchising thousands of previously eligible voters even if they have already served their sentences and have returned to society. Former Florida Governor Charlie Crist (R-FL) restored the voting rights of 154,000 felons convicted of non-violent crimes. In March 2011, after 30 minutes of public debate, Governor Scott overturned that decision, instantly disenfranchising almost 98,000 citizens and prohibiting another 1.1 million convicts from being allowed to vote after they are released from prison. Former President Bill Clinton asked in July: “Why should we disenfranchise people forever once they’ve paid their price? Because most of them in Florida were African-Americans and Hispanics and would tend to vote for Democrats—that’s why.” Iowa Governor Terry Branstad (R-IA) recently took a similar action, overturning his predecessor’s decision to restore voting rights to some 100,000 ex-felons. Until recent years, Iowa saw up to five percent of its residents ineligible to vote, including 33 percent of its African-American residents. Florida, Iowa, Kentucky, and Virginia require former felons to apply for the right to vote to be restored.
Voter Identification - Six states—Alabama, Kansas, South Carolina, Tennessee, Texas, and Wisconsin, all controlled by Republican governors and legislatures—have passed laws requiring an official government ID to cast a ballot. Berman notes that some 10 percent of US citizens lack such identification, and the number of young and black voters, groups that traditionally lean Democratic, are much higher. The turn towards voter ID requirements began in 2008, when the US Supreme Court upheld an Indiana photo-ID requirement even though state lawyers could not produce a single instance of the kind of voter fraud that photo ID laws are designed to prevent. After the ruling, ALEC orchestrated a nationwide move towards photo ID requirements. ALEC wrote draft legislation for Republican legislators based on Indiana’s ID requirement. Five of the states that passed those laws had their legislation submitted by legislators who belong to ALEC. Heather Smith, president of the voter-registration group Rock the Vote, says: “We’re seeing the same legislation being proposed state by state by state. And they’re not being shy in any of these places about clearly and blatantly targeting specific demographic groups, including students.” In Texas, the Republican-dominated legislature passed “emergency” legislation that was signed into law by Governor Rick Perry saying that a concealed-weapons permit is acceptable ID, but a college ID is not. Republicans in Wisconsin effectively disenfranchised every college student by requiring that acceptable IDs contain information that no colleges put on their IDs. Dane County board supervisor Analiese Eicher says, “It’s like creating a second class of citizens in terms of who gets to vote.” In Wisconsin, for example, about half of African- and Hispanic-American citizens do not have a driver’s license, and the state has an extremely small number of Department of Motor Vehicles (DMV) offices—some of which are only open one day a month. Governor Scott Walker (R-WI) attempted to close 16 DMV offices, all in heavily Democratic-voting areas. Berman notes, “Walker planned to close a DMV in Fort Atkinson, a liberal stronghold, while opening a new office 30 minutes away in the conservative district of Watertown.” Democratic governors in five states—Minnesota, Missouri, Montana, New Hampshire, and North Carolina—have all vetoed ID laws. Voters in Mississippi and Montana are considering ballot initiatives requiring voter IDs. Legislation is currently pending in Pennsylvania. Perhaps the most restrictive law was signed into effect by South Carolina Governor Nikki Haley (R-SC). Voters must have a free state ID to vote—but they must pay for a passport or birth certificate. Brown-Dianis says, “It’s the stepsister of the poll tax.” Many elderly black residents who were born at home in the segregated South and were never issued birth certificates can no longer vote unless they go to family court to prove their identity.
Significant Impact on 2012 Voting - Berman writes that when these measures are taken in the aggregate, the turnout of Democrats to the 2012 votes will be significantly smaller, perhaps enough to throw races to Republican candidates. In July, Clinton told a group of student activists: “One of the most pervasive political movements going on outside Washington today is the disciplined, passionate, determined effort of Republican governors and legislators to keep most of you from voting next time. Why is all of this going on? This is not rocket science. They are trying to make the 2012 electorate look more like the 2010 electorate than the 2008 electorate.” Clinton was referring to the 2010 elections, widely considered a Republican “wave” election in part because of far smaller turnouts among young and minority voters than in 2008, and because of a large number of “tea party” voters. Clinton added, “There has never been in my lifetime, since we got rid of the poll tax and all the Jim Crow burdens on voting, the determined effort to limit the franchise that we see today.”
Cracking Down on Voter Fraud? - Republicans insist that voter fraud is rampant in America. Since George W. Bush took office in 2001 after losing the popular vote (see 9:54 p.m. December 12, 2000), his administration made “voter fraud” a top priority for Justice Department prosecutors. In 2006, the DOJ fired two US Attorneys who refused to prosecute patently fraudulent voter fraud allegations. Bush advisor Karl Rove called voter fraud “an enormous and growing problem.” He told the Republican National Lawyers Association that America is “beginning to look like we have elections like those run in countries where the guys in charge are colonels in mirrored sunglasses.” The Republicans successfully destroyed the community activism group ACORN (Association of Community Organizations for Reform Now) after false allegations were made that it was, as Berman writes, “actively recruiting armies of fake voters to misrepresent themselves at the polls and cast illegal ballots for the Democrats.” A massive DOJ probe in 2006 and 2007 failed to prosecute a single person for intentionally impersonating another person at the polls, an action that the DOJ claimed was at the heart of the voter fraud investigation. Eighty-six cases of voter fraud did win convictions, but most of those were immigrants and former felons who did not intentionally cast illegal votes. An enormous investigation in Wisconsin resulted in 0.0007 percent of the electorate being prosecuted for voter fraud. And the Brennan Center report found the instance of voter fraud in America extraordinarily small (see 2007).
Voter Fraud Allegations Dog Obama Victory - Republican lawmakers and activists made a raft of allegations after the November 2008 elections that placed the White House in the hands of Barack Obama (D-IL). The 29 states that register voter affiliation showed a roughly 2-1 increase in new Democratic voters over Republicans for 2008, and Obama won almost 70 percent of those votes. Election reform expert Tova Wang says flatly, “This latest flood of attacks on voting rights is a direct shot at the communities that came out in historic numbers for the first time in 2008 and put Obama over the top.” Berman cites Kansas Secretary of State Kris Kobach as emblematic of the Republican pushback against the Obama victory. Kobach is a former Bush-era Justice Department advisor who helped push through his state’s requirement that every voter prove his or her citizenship, ignoring the fact that Kansas has prosecuted exactly one case of voter fraud since 2006. Kobach used fear of illegal immigrants to help push his requirement through, stating without evidence, “In Kansas, the illegal registration of alien voters has become pervasive.” He also stated that many people were casting ballots in the name of dead voters, and cited the example of Alfred K. Brewer as a dead voter who mysteriously voted in 2008. However, as the Wichita Eagle showed, Brewer is very much alive. “I don’t think this is heaven,” Brewer told the Eagle, “[n]ot when I’m raking leaves.” Representative John Lewis (D-AL), a civil rights crusader who was brutally beaten during the 1960s effort to win voting rights for African-Americans, says bluntly, “Voting rights are under attack in America.” On the House floor in July, Lewis told the assemblage, “There’s a deliberate and systematic attempt to prevent millions of elderly voters, young voters, students, minority and low-income voters from exercising their constitutional right to engage in the democratic process.”
Fighting Voter Disenfranchisement - Voting-rights organizations are fighting back as best they can. The American Civil Liberties Union (ACLU) is challenging several of the new voter-restriction laws in court. Congressional Democrats are pushing the Department of Justice to block or weaken laws that impede minority voters from exercising their rights. Lewis says, “The Justice Department should be much more aggressive in areas covered by the Voting Rights Act.” Meanwhile, many voting-rights experts predict chaos at the polls in November 2012, as voters react with confusion, frustration, and anger at being barred from voting. “Our democracy is supposed to be a government by, of, and for the people,” says Browne-Dianis. “It doesn’t matter how much money you have, what race you are, or where you live in the country—we all get to have the same amount of power by going into the voting booth on Election Day. But those who passed these laws believe that only some people should participate. The restrictions undermine democracy by cutting off the voices of the people.” (Berman 8/30/2011)

An unofficial logo for the Cain presidential campaign.An unofficial logo for the Cain presidential campaign. [Source: Draft Cain (.org)]Republican presidential candidate Herman Cain (R-GA), who is battling allegations that he sexually harassed two former employees, is further shaken by reports that his campaign may have accepted illegal corporate donations. The apparently-defunct corporation, Prosperity USA, was run by Wisconsin political operatives Mark Block and Linda Hansen, who now serve as Cain’s chief of staff and deputy chief of staff, respectively. The corporation, which incorporated itself as a nonprofit, tax-exempt organization under federal tax law, helped get Cain’s campaign up and running by paying for tens of thousands of dollars in expenses, including computers, chartered flights, and travel to several states. Such payouts are possible violations of federal tax and campaign law. According to documents obtained by the Milwaukee Journal-Sentinel, Prosperity USA claims it was owed about $40,000 by the Cain campaign for a variety of items in February and March. It is unclear whether the Cain campaign has reimbursed Prosperity USA. Cain began taking donations for his presidential bid on January 1, 2011, but records indicate Prosperity USA may have been spending money on behalf of him well before that date. The records have been verified as authentic by sources close to Prosperity USA. Cain’s federal election filings make no mention of monies owed to Prosperity USA, and the figures in the documents do not match payments made by the Cain Campaign. Other payouts include a $100,000 fee to the Congress of Racial Equality (CORE), a conservative black organization; Cain spoke at the organization’s annual Martin Luther King Jr. dinner in mid-January, an event hosted by controversial conservative blogger Andrew Breitbart. CORE is heavily involved in tea party events. Apparently Cain was not paid for the appearance, inasmuch as his personal financial disclosure forms do not show any honorariums for speeches. (Bice 10/30/2011; USA 10/31/2011 pdf file)
Apparent Violations of Tax, Campaign Law - Election law experts say the transactions raise many questions about Priorities USA and its connection to the Cain campaign. A Washington, DC, lawyer who advises many Republican candidates and conservative groups on campaign issues, and refuses to be publicly identified, says, “If the records accurately reflect what occurred, this is way out of bounds.” She says it is a violation of tax law for Prosperity USA to advance money to the Cain campaign for the items invoiced, and the expenditures also seem to violate federal campaign regulations. “I just don’t see how they can justify this,” she says. “It’s a total mess.” Wisconsin campaign attorney Michael Maistelman, a Democrat who has worked for candidates from both parties, agrees, saying, “The number of questionable and possibly illegal transactions conducted on behalf of Herman Cain is staggering.” Think Progress legal expert Ian Millhiser writes that “if Prosperity USA effectively donated money to the Cain campaign by fronting money to them and agreeing not to be paid back, that is a violation of federal election law,” even if the Cain campaign eventually pays the money back. Block and Hansen have refused to comment on the issue. In 1997, Block, then advising the campaign of former Wisconsin Supreme Court Justice Jon Wilcox, settled allegations of election-law violations by agreeing to pay a $15,000 fine and to stay out of Wisconsin politics for three years. (Bice 10/30/2011; Millhiser 10/31/2011) Election lawyer Lawrence H. Norton, who formerly served as a general counsel for the Federal Election Commission (FEC), later says, “If they are supporting his campaign, whether directly or indirectly, they are violating the law.” (Confessore 11/3/2011)
Connections to Koch-Funded Political Organization - In recent years, Block has run the Wisconsin chapter of Americans for Prosperity (AFP—see Late 2004), a nonprofit conservative lobbying and political action group co-founded by the conservative Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). AFP played a key role in organizing the tea party movement. Block met Cain through AFP, and encouraged him to run for president. Block has incorporated a number of offshoot organizations and corporations from AFP, most of which bore the word “prosperity” in their names. AFP officials insist that Block’s organizations are legally separate from theirs. Documents show that when Block left AFP at the beginning of 2011, he left behind tens of thousands of dollars in unpaid invoices.
History of Involvement with Cain Campaign - Block’s largest group was the now-defunct Wisconsin Prosperity Network (WPN), envisioned as an umbrella organization that would spend over $6 million a year underwriting other conservative political organizations. Hansen was the group’s executive director. WPN was also set up as a tax-exempt nonprofit organization. Under the law, neither WPN nor Prosperity USA can have direct political involvement with any candidate or candidate organization. Sources familiar with the situation say the two organizations were closely linked, and raised hundreds of thousands of dollars from Wisconsin conservatives. One supporter, who still advocates for Cain and thusly refuses to have his name publicly disclosed, says he and many others are very upset with the groups for failing to use the money they raised for their intended purposes. The supporter names Hansen as being particularly responsible for the groups’ money usage. By February 2011, both groups were deeply in debt, with WPN showing a net loss of $62,000 and Prosperity USA showing net losses of $110,000. Prosperity USA’s biggest debt was an almost-$40,000 debit to “FOH,” which records show means “Friends of Herman Cain,” the name of Cain’s presidential operation. The debt includes almost $15,000 for what is called an “Atlanta invoice”; $17,000 for chartered flight service; $5,000 for travel and meetings in Iowa, Las Vegas, Dallas, Houston, and Louisiana; and $3,700 for iPads purchased for the Cain campaign. Other small-ticket items for travel and expenses by Block are listed as “not billed to FOH but due from them.” Other expenses include a September 2010 bill for $5,000 for costs incurred by Cain’s speech to the conservative Right Nation rally in Chicago, which records show Cain attended at the request of AFP; the Cain campaign later used a segment from that speech in a campaign ad. Prosperity USA also paid for a trip by Block to Washington, DC, to meet with billionaire oil magnate and conservative financier David Koch. Singer Krista Branch, who recorded “I Am America,” the unofficial anthem of the tea party movement, was supposed to be paid $3,000 by Prosperity USA; Cain has since adopted the song as his campaign theme. Branch’s husband, Michael, is a Cain campaign and fundraising consultant. The records also show $150,000 in loans from individuals who are not identified. Sources say Hansen paid much of that loan money to CORE earlier in the year. Michael Dean, the attorney for both Prosperity USA and WPN, resigned his position with WPN in the summer of 2011, and contacted the IRS about the organization’s tax-exempt status. And WPN is a listed litigant in a case pending before the Wisconsin Supreme Court.
'Outside Counsel' Will Review Allegations - The Cain campaign will respond by saying that an “outside” lawyer will review the allegations. “As with any suggestions of this type, we have asked outside counsel to investigate the Milwaukee Journal Sentinel’s suggestions and may comment, if appropriate, when that review is completed,” says campaign spokesman J.D. Gordon. Gordon refuses to identify the “outside counsel,” or give a time frame as to when the review will be complete. (Bice 10/30/2011; Confessore 11/3/2011)

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.” (Keyes and Waldron 1/21/2012)

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

Billionaire oil magnate David Koch, who with his brother Charles Koch has become one of the driving financial forces behind the US conservative political movement (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), gives an interview to the Palm Beach Post’s Stacey Singer. Koch, who rarely gives interviews, chose to meet with Singer because of her background as a health and science writer, according to Koch spokesperson Cristyne Nicholas. The interview focuses in part on the cancer research underway at the University of Texas’s MD Anderson Cancer Center, where Koch is being treated for prostate cancer. However, the interview also touches on the Koch brothers’ political participation. Singer begins her report of the interview by informing her readers of the media portrayal of the “secretive” brothers and their construction of what she calls “a clandestinely built political machine that disdains government regulation and taxes, obfuscates the science on global warming, and now pulls the strings of decision-makers at every level, from Florida Tea Party members to Wisconsin state senators—even US Supreme Court justices.” She writes that Koch seems “baffled” by that perception, saying: “They make me sound like a bully. Do I look like a bully?” According to Singer, Koch wants to improve his media image. The Koch brothers have given, Singer reports, “many millions to far-right organizations dedicated to spreading an Ayn Rand-infused ideology, one in which a benevolent business class flourishes, unfettered by taxes and regulations. Some have called it free-market fundamentalism.” Nicholas says Koch wants to be remembered more for his philanthropy than his political involvement. “That’s what his legacy will hopefully be: finding a cure for cancer,” she writes. “That is his goal in life right now and it far exceeds any political views he has. Which are strong.” Koch is proud of his political activism, admitting without restraint his organizations’ involvement in protecting Governor Scott Walker (R-WI) from being recalled. “We’re helping him, as we should. We’ve gotten pretty good at this over the years,” he says. “We’ve spent a lot of money in Wisconsin. We’re going to spend more.” The “we” in his statement is primarily Americans for Prosperity (AFP—see Late 2004), the “astroturf” lobbying and advocacy organization that is spending some $700,000 on a single advertisement buy in Wisconsin on Walker’s behalf, an ad that makes statements many union members and public workers say is filled with false and misleading praise for Walker’s policies. In a now-famous prank phone call, a blogger posing as Koch got Walker to say that his goal was to “crush” Wisconsin’s unions, a goal Koch may share, though he is more circumspect in his language. “What Scott Walker is doing with the public unions in Wisconsin is critically important,” Koch says after an expansive dinner featuring salmon and white wine. “He’s an impressive guy and he’s very courageous. If the unions win the recall, there will be no stopping union power.” Nicholas later “clarifies” Koch’s remarks, saying: “Koch companies support voluntary associations, and where they so choose, we recognize employees’ rights to be represented and bargain collectively. We think the best workplace relationships are fostered when the employer works directly with its employees. It is a mischaracterization of our principles to say this means we oppose unions or want to dismantle all unions.” Singer writes that Koch’s usage of the term “union power” seems as biting as one might have said “Bolshevik” in an earlier time—“a new red scare for a new century,” she writes. Besides funding such organizations as AFP, the Cato Institute, the Heritage Foundation, the Republican Governors Association, the American Legislative Exchange Council (where, Singer writes, “copycat conservative legislation is passed among conservative state politicos”), and others, the Koch brothers are one of the most powerful and influential financial forces behind the “tea party” movement, largely through AFP. Singer conducts the interview on February 11; the Palm Beach Post publishes the report based on the interview on February 20. (Singer 2/20/2012; Nichols 2/20/2012) Koch’s public admission of support for Walker could constitute a violation of the laws administering such “nonprofit” organizations as AFP, according to one journalist (see February 20, 2012).

The Republican presidential primaries are being largely controlled, at least from a financial standpoint, by a very few extraordinarily wealthy individuals, according to research provided by former Treasury Secretary Robert Reich and the news organization ProPublica. In January 2012, the campaign of frontrunner Rick Santorum (R-PA) was almost entirely funded by billionaires William Dore and multi-millionaire Foster Friess (see February 16-17, 2012), who between them supplied over three-quarters of the $2.1 million donated to Santorum’s “super PAC” “Red White and Blue Fund.” Dore is the president of a Louisiana energy corporation and Friess is a fund manager in Wyoming. Of the $11 million raised by the super PAC supporting Newt Gingrich (R-GA), $10 million came from Sheldon Adelson and his wife, Miriam. Adelson runs a casino ownership group in Las Vegas. Most of the rest of Gingrich’s funding came from Texas billionaire Harold Simmons. PayPal co-founder Peter Thiel provided $1.7 million of the $2.4 million raised in January by the super PAC for Ron Paul (R-TX). As for Mitt Romney (R-MA), himself a multi-millionaire, his super PAC “Restore Our Future” raised $6.6 million in January. Almost all of it came from 40 donors, including hedge fund billionaires Bruce Kovner, Julian Robertson (the largest donor at $1.25 million), and David Tepper, hotel owners J.W. Marriott and Richard Marriott, and Hewlett-Packard CEO Meg Whitman. The lobbying firm FreedomWorks (see 1984 and After, May 16, 2008, February 16-17, 2009, February 19, 2009 and After, February 27, 2009, March 13, 2009 and After, April 2009 and After, April 14, 2009, April 15, 2009, June 26, 2009, Late July, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 14, 2009, August 19, 2009, August 24, 2010, September 2010, September 12, 2010 and August 17, 2011) has contributed over $1.4 million to various Republican candidates. Reich writes, “Whoever emerges as the GOP standard-bearer will be deeply indebted to a handful of people, each of whom will expect a good return on their investment.” Reich goes on to cite American Crossroads’s “super PAC” Crossroads GPS, founded by Republican political consultant Karl Rove, and its lineup of corporate moguls contributing hundreds of millions of dollars. The lineup of Crossroads supporters includes Charles and David Koch (see 1940 and After, 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, Late 2004, October 2008, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, September 2010, August 17, 2011, April 2010 and After and October 4, 2011), and Harold Simmons, owner of Contran Corporation, who has contributed $10 million to the organization. Reich says there is no legal way to know exactly how much the Kochs and their fellows have contributed: “The public will never know who or what corporation gave what because, under IRS regulations, such nonprofit ‘social welfare organizations’ aren’t required to disclose the names of those who contributed to them.” The previous limit of $5,000 per year per individual was erased by the 2010 Supreme Court Citizens United v. Federal Election Commission decision, a decision Reich calls “grotesque.” Reich writes: “In a sense, Santorum, Gingrich, Paul, and Romney are the fronts. Dore et al. are the real investors.… Now, the limits are gone. And this comes precisely at a time when an almost unprecedented share of the nation’s income and wealth is accumulating at the top. Never before in the history of our Republic have so few spent so much to influence the votes of so many.” (Thompson 2/2/2012; Reich 2/21/2012; Shaw 2/21/2012) President Obama’s super PAC, “Priorities USA Action,” has received $2 million from Hollywood mogul Jeffrey Katzenberg and another $1 million from the Service Employees International Union’s Committee on Political Education (SEIU COPE). However, Priorities USA has raised relatively paltry sums in comparison to the monies raised by the Republican super PACs, according to a Reuters report. Obama and his re-election campaign had originally distanced themselves from the super PAC operating in their name, in part because they disapprove of the Citizens United decision and the influence of super PACs in electoral politics. Since the Obama campaign officially endorsed the organization, donations have risen. Obama campaign advisor David Axelrod says that Obama “believes that this is an unhealthy development in our political process, but it is a reality of the rules as they stand. This was not a quick decision, but he also feels a responsibility to win this election. There’s a lot hanging on this beyond him.” By the end of January, Priorities USA had raised $4.2 million. In contrast, Romney’s “Restore Our Future” had raised $36.8 million by the end of last month. (Mason 2/2012; Shaw 2/21/2012) Partly in response to reports of billionaires’ influence on the 2012 elections, comedian Bill Maher will announce his donation of $1 million to the Obama super PAC. Maher will tell an audience that an Obama victory over any of the Republican contenders is “worth a million dollars” and will describe the donation as “the wisest investment I think I could make.” (Mason 2/24/2012) Friess is often described in the press as a “billionaire,” but both Friess and Forbes magazine say that appellation is inaccurate. (Kilachand 2/8/2012)

The billionaire oil magnates and conservative political financiers Charles and David Koch (see 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) launch a court battle to take control of the libertarian Cato Institute, a Washington-based think tank. The Cato Institute began in 1974 as the Charles Koch foundation and changed its name to the Cato Institute in 1976, with the support and funding of the Koch brothers (see 1977-Present). Until last year, the institute had four primary shareholders with a controlling interest: the Koch brothers, Cato president Edward H. Crane III, and William A. Niskanen, a former Reagan administration economic advisor who died in 2011. The Kochs believe that there should be only three shareholders now, which would give them complete control of the organization, but Crane says Niskanen’s 25 percent share should go to Niskanen’s widow, Kathryn Washburn. Koch lawyer Wes Edward says the dispute is about nothing but shareholder rights. Cato has 120 full-time staffers and around 100 visiting or adjunct scholars. Its annual operating budget is $23 million. (Allen 3/1/2012)

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.’” (Dorner 3/10/2012; Harris 3/11/2012)

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. (Vogel 3/29/2012)

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.” (Allen and VandeHei 5/30/2012)

Politico reporters Kenneth P. Vogel and Tarini Parti report on the difficulty of getting solid information about the donors being organized by the billionaire Koch brothers. Oil magnates Charles and David Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) intend to raise at least $400 million to defeat President Obama in the 2012 election (see Late May 2012), and to ensure victory for Republicans in state and local races around the nation (see February 21, 2012). Vogel and Parti call the Koch political operation “its own political party,” almost, even going so far as to hold its own semi-annual conventions, including one scheduled for late June in San Diego. That convention will bring together dozens of millionaire and billionaire conservatives, who will write big checks for the Koch efforts. Additionally, the Kochs will unveil their new voter database, Themis (see April 2010 and After), which they expect will help in targeting potential Republican voters around the country. Themis played a big part in a recent successful effort to stop Governor Scott Walker (R-WI) from being recalled, as did huge amounts of Koch-organized donations on behalf of Walker. Three of the prime figures in the Koch efforts are convention “emcee” Kevin Gentry and political operatives Marc Short and Tim Phillips (see May 29, 2009); the operation is orchestrated primarily by Koch advisor and operative Richard Fink. Additionally, the Koch brothers intend to take over the Cato Institute think tank (see February 29, 2012) and make it more politically active. Minnesota television station owner Stanley Hubbard, a longtime Koch supporter, says: “They ask for support—and they get it because we all love our country and we have a different vision than do the liberals. I’ve gotten friends to be involved, and I think others have, too, so I would guess, yes, that’s expanding.” Vogel and Parti expand on how secretive the Koch network (which they call “Koch World”) actually is. They are unable to find out where the San Diego convention is to be held, though they did determine that it is scheduled to take place over the weekend of June 23. A Republican who has worked with Koch-backed groups says: “The Koch groups are very complex in the way they do things. They’re difficult to penetrate from the outside, which is smart. You often need a Sherpa.” The conventions are heavily patrolled by hired security guards, who at one recent convention threw out a Politico reporter under threat of arrest. Participants are required not to discuss the convention with outsiders, including making posts on Facebook or Web blogs. (The winter 2011 convention in Rancho Mirage, California, leaked to the press, sparking what Politico calls “raucous protests” outside the exclusive resort hosting the conference.) According to Vogel and Parti, Phillips runs the lobbying organization Americans for Prosperity (AFP—see Late 2004 and November 2009). Short oversees the spending of Koch network monies by other approved groups, some of which air television ads attacking Democrats. Gentry raises money for the Koch network. Gentry often uses urgent and even apocalyptic rhetoric in his fundraising appeals, warning potential donors of “dangerous and imminent threats” to American society and comparing the Koch conventions to the Continental Congress of 1776. One recent email lauded efforts by Supreme Court Justice Clarence Thomas to help the Koch brothers’ fundraising. Gentry also spearheads the fundraising efforts for an informal network of conservative think tanks such as the Heritage Foundation, AFP, and the Texas Public Policy Foundation. Some conservatives are uncomfortable with the Koch brothers’ attempts to gain dominance in conservative party politics. “Koch has been angling for the last three or four years to consolidate more of the conservative movement within their network,” says one conservative operative. “That’s why they do these seminars—to try to consolidate more big donors’ money and direct it into their projects.” The operative admits that the Koch fundraising efforts are very effective, saying, “Some of the donors believe giving to one source makes it easier for them instead of having to give to a dozen different places, and others just want to come out to hang with the billionaire brothers and be part of a very elite universe.” Koch conventions regularly feature prominent conservatives like Thomas and fellow Supreme Court Justice Antonin Scalia, Texas Governor Rick Perry, New Jersey Governor Chris Christie, Virginia Governor Bob McConnell, House Majority Leader Eric Cantor (R-VA), and right-wing radio hosts Rush Limbaugh and Glenn Beck. While federal documents track some $120 million in donations from recent Koch summit donors, most of the money raised and spent goes untracked, instead being hidden away by “nonprofit” groups that purport to be non-political social advocacy groups. Gentry has assured donors, “There is anonymity that we can protect.” (Vogel and Parti 6/15/2012)

Casino billionaire Sheldon Adelson gives $10 million to the billionaire Koch brothers, joining them in their efforts to defeat President Obama in the November presidential elections. Charles and David Koch (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, February 14, 2011, February 29, 2012, Late March 2012, and June 15, 2012) are planning to spend some $400 million to elect Republican candidate Mitt Romney (R-MA) and defeat Obama. The information about Adelson’s donation comes from a Republican Party source in Nevada. Adelson makes his pledge at a Koch donor convention in San Diego, the first time he has attended a Koch-sponsored political event. He has already given $10 million to a Romney “super PAC” (see June 13, 2012), $10 million to a “super PAC” operated by former Bush White House advisor Karl Rove, and $10 million to two groups backing Republican House candidates (see Mid-June, 2012). The Kochs are the driving force behind the “astroturf” organization Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), which has spent millions of dollars on advertisements attacking Obama and other Democrats. The Kochs are also funding Themis, a voter information database (see April 2010 and After). Koch funding extends well into state and even local elections. (Stone 6/16/2012; Weiner 6/29/2012)

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