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Profile: National Federation of Independent Business (NFIB)

National Federation of Independent Business (NFIB) was a participant or observer in the following events:

’We Are Ohio’ logo.’We Are Ohio’ logo. [Source: ProgressOhio (.org)]Ohio Senate Bill 5, known as the Ohio Collective Bargaining Limit Repeal, is defeated by a voter referendum. The bill would enable severe limitations on collective bargaining for public employees in the state, and make it difficult for those employees to strike and collectively bargain for wages, health insurance, and pensions, and would have increased employee contributions for pensions and health insurance. The hard-fought campaign pitted Governor John Kasich (R-OH) and Ohio Republicans against the state’s teachers, firefighters, police officers, and unions. The bargaining limit repeal was supported by farmers and a number of independent corporate organizations, including Citizens United, the Ohio Chamber of Commerce, and the National Federation of Independent Business; it was opposed by labor unions, Democrats, and some independent organizations, including the bipartisan political action committee We Are Ohio, which helped launch the referendum. Over $50 million was spent on the campaign by outside parties and both political parties. Ohio Democrats and labor leaders call the repeal a win for progressives and worker rights, and the first step in recapturing the state government, which has been dominated by Republicans since the 2010 elections. Doug Stern, a firefighter who joined We Are Ohio, says: “Hey, I’m a Republican, but I’m telling you, Republican firefighters and police officers aren’t going to be voting Republican around here for a while. We’ll see what happens in 2012, but our guys have a long memory. We’re angry and disgusted.” Supporters, relying on large infusions of cash from corporate and other interests, relied largely on media advertising to support the repeal, while opponents staged mass protests and organized grassroots volunteers who they say will continue to work to defeat Republican interests. One $100,000 television ad paid for by Citizens United depicted schoolchildren while a voiceover told viewers that the bill allows schools to “replace” bad teachers, and added, “We parents and educators deserve the right to run our own schools.” Citizens United president David Bossie (see May 1998) told a reporter that his organization “decided to get in and play a role right at the end to educate the voting public and try to persuade them that this is the right way to go.” We Are Ohio called such ads “desperate attempt[s] by another shadowy out-of-state group that refuses to disclose the source of its money” (see January 21, 2010). Kasich repeatedly argued that the harsh measures against public employees and labor unions were necessary to balance the state’s budget. One senior state Republican says that Kasich “snatch[ed] defeat from the jaws of victory” by alienating labor-friendly independents in the state. [Politico, 11/2/2011; Think Progress, 11/3/2011; Politico, 11/8/2011]

Entity Tags: Ohio Chamber of Commerce, David Bossie, Citizens United, Doug Stern, National Federation of Independent Business, Ohio Collective Bargaining Limit Repeal, We Are Ohio, John Kasich

Timeline Tags: Civil Liberties

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

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

Timeline Tags: Civil Liberties, 2012 Elections

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