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The press reports that the US Chamber of Commerce and other lobbying organizations are the biggest winners in the controversial Citizens United decision by the US Supreme Court (see January 21, 2010), which allows corporations and labor unions to spend unrestricted amounts of money in support of, or opposition to, federal candidates. The Chamber of Commerce spends more on promoting Republican and conservative candidates than almost any other organization outside of the Republican Party itself. Other trade organizations, which tend to support Republicans, will almost certainly up their spending on behalf of their candidates, or in opposition to Democrats, according to experts interviewed by reporters, as will most corporations.
Unrestrained Spending to Favor Republicans - Democratic lawyer Marc Elias says: “It is a sweeping decision. In one opinion, the Court struck down all bans on corporate independent spending.” GOP lawyer Robert Kelner says that the ruling “will reflect a huge sea-change in campaign finance law. The Court went all the way. It really relieves any restrictions on corporate spending on independent advertising.” Another GOP lawyer, Ben Ginsberg, says: “It’s going to be the Wild Wild West. If corporations and unions can give unlimited amounts… it means that the public debate is significantly changed with a lot more voices, and it means that the loudest voices are going to be corporations and unions.” Former Federal Elections Commission member Brad Smith says, “This case will lead to more spending, I think, in political elections.” Lawrence M. Noble, the former general counsel for the FEC, says a lobbyist can tell a candidate, “We have got a million we can spend advertising for you or against you—whichever one you want.” Political science professor Robert Watson, who has consulted with Democratic campaigns, says: “It’s a game changer. And the last thing we need is for major corporations and nonprofits to have unlimited access to buy their members of Congress.” The New York Times writes: “It is expected to unleash a torrent of attack advertisements from outside groups aiming to sway voters, without any candidate having to take the criticism for dirty campaigning. The biggest beneficiaries might be well-placed incumbents whose favor companies and interests groups are eager to court. It could also have a big impact on state and local governments, where a few million dollars can have more influence on elections.” The National Journal states: “Over the long run, the ruling is likely to favor GOPers more than it does Dems. While it does apply to unions and corporations equally, Elias said the presumption is that corporations have more money to spend.” Major corporations will not openly run their own advertising, Kelner says, but they will funnel millions into trade associations such as the Chamber of Commerce. “If people think that individual companies are going to go out and buy ads, there may be some of that, but for the most part companies are going to flow this money through trade groups and other outside groups,” Kelner says. “This will open the floodgates for money flowing through groups like the US Chamber of Commerce and other associations [that] spend money on political advertising.… There was always a cloud of doubt around outside groups and trade associations, and this lifts those clouds of doubt and leaves behind clear skies.” Former Democratic National Committee (DNC) general counsel Joe Sandler says the ruling may open the door for more attacks on incumbents by corporate and other entities eager to spend money to ease them out. “You will see more sharp-edged, candidate-specific ads on the air closer to the election,” Sandler says. “That could make it more difficult for incumbents to take tough votes in an election year.” (Kam 1/21/2010; Wilson 1/21/2010; Kirkpatrick 1/21/2010) Think Progress, the liberal news Web site affiliated with the Center for American Progress, writes, “The ruling is a giant win for the US Chamber of Commerce and the big corporations, which tend to donate heavily to Republicans.” (Think Progress 1/22/2010)
Citizens the Real Losers? - Paul Ryan of the Campaign Legal Center calls the ruling a complete loss for citizens, saying: “[T]he Supreme Court majority declared that corporate speech trumps the rights of American voters to government free of corporate corruption. The Court has nominally upheld campaign finance disclosure requirements applicable to corporations, but I think time will prove that those disclosure requirements are largely ineffective when dealing with contributions.” Brad Ashwell of the Florida Public Interest Research Group calls the ruling a “shocking burst of judicial activism.” Senator Russ Feingold (D-WI) calls the ruling “a terrible mistake,” and says the Court “chose to roll back laws that have limited the role of corporate money in federal elections since Teddy Roosevelt was president. Ignoring important principles of judicial restraint and respect for precedent, the Court has given corporate money a breathtaking new role in federal campaigns.” Feingold and other Congressional Democrats want to pass legislation that would curb the decision as soon as feasible. (Kam 1/21/2010; Wilson 1/21/2010; Kirkpatrick 1/21/2010)
Republicans Celebrate Victory for Free Speech, Say Decision Will 'Level Out' Spending - But Marco Rubio (R-FL), running for Florida’s open Senate seat, says, “Today’s Supreme Court ruling is a victory for those who truly value the freedoms outlined in our First Amendment.” And Republican consultant Ed Brookover, who represents Republican House candidate Allen West (R-FL), says he believes spending from liberal groups such as MoveOn.org will equal spending by corporations, and “level out” spending for the two parties. (Kam 1/21/2010; Wilson 1/21/2010)
President Critical of Decision - President Obama speaks out against the decision (see January 21, 2010).
The First National Romney Victory Leadership Retreat, a two-day, invitation-only conference in Park City, Utah, features a number of prominent Republican lawmakers and financiers gathered to coordinate strategy for the presidential campaign of Mitt Romney (R-MA). The Washington Post describes the event as three days of “strategizing and fraternizing.” One donor and member of Romney’s national finance team told a reporter before the event that a “well organized, committed team” is expected who are “subordinating individual ego for the greater goal.” Perhaps the most controversial figure attending is Karl Rove, the former Bush administration political advisor who now helps run American Crossroads and Crossroads GPS (see April 13-20, 2012). The two groups have been heavily involved in running advertisements and other activities on behalf of the Romney campaign, but the law says the groups must conduct themselves independently of the Romney campaign. The Post reports, “Rove’s appearance could raise questions because of laws barring any coordination between super PACs and campaigns.” Common Cause’s Mary Boyle says that Rove’s appearance “seems to make a mockery of the rule that bans coordination between a super PAC and a candidate.” Tara Malloy, senior counsel for the Campaign Legal Center, agrees with Boyle, but says Rove’s participation in the event is probably legal. “[T]he coordination rule is a pretty slim reed between candidates and the super PACs that support those candidates,” she says. “It’s not by any means an airtight barrier between those two.” To break the law, Romney campaign officials would have to have a “substantial discussion” with Rove about advertising strategies. Malloy says, “The scandal in Washington is what is legal, not what’s illegal.” Other attendees include former Secretary of State James A. Baker; former Minnesota Senator Norm Coleman, the founder of the American Action Network (AAN), another influential “independent” super PAC (see Mid-October 2010); Senators Bob Corker (R-TN) and Rob Portman (R-OH), a possible vice-presidential contender for Romney; former Utah Governor Mike Leavitt (who will lead Romney’s transition team if Romney wins the presidential election); Governor Bob McDonnell (R-VA), another possible vice-presidential choice; former Governor Tim Pawlenty (R-MN), also on the vice-presidential “short list”; former Governor John Sununu (R-NH); and Weekly Standard editor William Kristol. Senator John McCain (R-AZ) speaks to the assemblage, as does former Secretary of State Condoleezza Rice and former Governor Jeb Bush (R-FL). Governor Bobby Jindal (R-LA), a possible vice-presidential pick, moderates a panel discussion on “Innovation in America,” joined by Hewlett Packard CEO Meg Whitman, billionaire donor Ken Langone, and two other possible vice-presidential choices, Representative Paul Ryan (R-WI) and Senator John Thune (R-SD). Rove takes part in a panel discussion called “Media Insight,” along with Romney counsel Ben Ginsberg, Kristol and his Weekly Standard colleague Fred Barnes, and GOP strategist Mary Matalin. A “Women for Romney Victory Tea” features Romney’s wife Anne and former Olympic figure skater Dorothy Hamill. Possible vice-presidential choices Senator Kelly Ayotte (R-NH), Senator Marco Rubio (R-FL), Governor Susana Martinez (R-NM), and Governor Nikki Haley (R-SC) do not attend the conference. Nor does Governor Chris Christie (R-NJ), a popular Republican who is not known to be on the vice-presidential list. Many Wall Street and private equity donors are also in attendance, welcomed by Woody Johnson, the owner of the New York Jets and the co-chair of Romney’s national finance team. One finance team member predicts the three-day event will raise as much as $700 million for Romney’s campaign. (Walshe 6/20/2012; Rucker 6/20/2012; Israel 6/21/2012)
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