“The Influence Of Money”: The Road To Total Political Domination By The Wealthy
The United States Supreme Court on Tuesday agreed to hear the case that opens the door to the final destruction of the campaign finance laws that place a limit on how much money an individual can contribute directly to a federal candidate or national political party.
Now that the infamous Citizens United case, decided in 2010, has removed limits on how much a corporation, union and individual can contribute to groups that are ‘unaffiliated’ with candidates and political parties—leading to the creation and domination of the Super PAC—the Court, by agreeing to hear yet another challenge to campaign finance laws, is poised to take the next step toward finishing off all campaign limits by freeing individuals to give candidates and their political parties unlimited sums of money.
As the law currently stands for calendar years 2013-14, individual donors are limited to giving contributions to candidates for federal offices up to a maximum of $123,200 during an election cycle (two years) with a limit of $2,600 to an individual candidate, $32,400 to a national political party, $10,000 to a state political party and $5,000 to any other political committee affiliated with a candidate or political party.
However, an Alabama political donor—joined by the Republican National Committee—believes that the limitation of $123,200 placed on an individual donor during an election cycle is ‘unconstitutionally low’ and wants the highest court in the land to remove the cap.
The case now set to come before the Supreme Court will challenge only the total contribution cap and does not go after the limits placed on money given to individual candidates and political parties. However, based on the Court’s ruling in Citizens United, it is widely anticipated that were the Supreme Court to side with the plaintiffs in this matter and end the limits on the total contribution amount, the Court will have telegraphed its intention to do away with limitations of any kind or nature—making it only a matter of time until limits on individual contributions to candidates and political parties are also tossed into the dustbin of history.
While ending the existing limitation would put political parties on an even keel with the Super PACs in the race for big money, it would also mean the latest evisceration of the campaign finance limits put in place during the 1970’s when Congress reacted to the growing influence of money in politics—money that placed wealthy, individual donors in a position of undue influence over the nation’s elected officials.
The case that will now be heard by SCOTUS was argued last year in the United States Court of Appeals for the District of Columbia Circuit where a three judge panel ruled that the challenged campaign limit laws were, indeed, constitutional. In issuing the Circuit Court ruling, Judge Janice Rogers Brown noted that the Supreme Court had previously held that limiting an individual’s political contributions had only a marginal effect on that person’s freedom of speech and that it was within Congress’ authority to place such limits on individual contributions.
Judge Brown added, “Although we acknowledge the constitutional line between political speech and political contributions grows increasingly difficult to discern, we decline plaintiffs’ invitation to anticipate the Supreme Court’s agenda.”
The Supreme Court has now accepted that invitation, leading many experts to worry that the latest blow to campaign finance laws in about to descend.
By: Rick Ungar, Op-Ed Contributor, Forbes, February 20, 2013
“More Elections For Sale”: Supreme Court Reaffirms That The Robber Barons Are In Charge
The US Supreme Court may still retain some familiarity with the Constitution when it comes to deciding the nuances of cases involving immigration policy and lifetime incarceration. But when it comes to handing off control of American democracy to corporations, the Court continues to reject the intents of the founders and more than a century of case law to assure that CEOs are in charge.
Make no mistake, this is not a “free speech” or “freedom of association” stance by the Court’s Republican majority. That majority is narrowing the range of debate. It is picking winners. To turn a phrase from the old union song, this Court majority has decided which side it is on.
The same Court that in January 2010 ruled with the Citizens United decision that corporations can spend freely in federal elections—enjoying the same avenues of expression as human beings—on Monday ruled that states no longer have the ability to guard against what historically has been seen as political corruption and the buying of elections.
The court’s 5–4 decision in the Montana case of American Tradition Partnership v. Bullock significantly expands the scope and reach of the Citizens United ruling by striking down state limits on corporate spending in state and local elections. “The question presented in this case is whether the holding of Citizens United applies to the Montana state law,” the majority wrote. “There can be no serious doubt that it does.”
Translation: if Exxon Mobil wants to spend $10 million to support a favored candidate in a state legislative or city council race that might decide whether the corporation is regulated, or whether it gets new drilling rights, it can. But why stop at $10 million? If it costs $100 million to shout down the opposition, the Court says that is fine. If if costs $1 billion, that’s fine, too.
And what of the opposition. Can groups that represent the public interest push back? Can labor unions take a stand in favor of taxing corporations like Exxon Mobil?
Not with the same freedom or flexibility that they had from the 1930s until this year. Last Thursday, the Court erected elaborate new barriers to participation in elections by public-sector unions—requiring that they get affirmative approval from members before making special dues assessments to fund campaigns countering corporations.
How might it work? If Walmart wanted to support candidates who promised to eliminate all taxes for Walmart, the corporation could spend unlimited amounts of money. It would not need to gain stockholder approval. It can just go for it.
But if AFSCME wants to counter Walmart argument, saying that eliminating taxes on out-of-state retailers will save consumers very little but will ultimate undermine funding for schools and public services, the union will have to go through the laborious process of gaining permission from tens of thousands, perhaps hundreds of thousands of members. And even then, it will face additional reporting and structural barriers imposed by the Court.
Campaign finance reformers had held out some hope that states might be able to apply some restrictions on corporate spending, as Montana did with its 100-year-old law barring direct corporate contributions to political parties and candidates. That law, developed to control against the outright buying of elections by “copper kings” and “robber barons,” was repeatedly upheld. Until now.
Now, says Marc Elias, one of the nation’s top experts in election law, “To the extent that there was any doubt from the original Citizens United decision [that it] broadly applies to state and local laws, that doubt is now gone.… To whatever extent that door was open a crack, that door is now closed.”
There may still be a few legislative avenues left for countering the “money power” of the new “copper kings” and “robber barons.” But they are rapidly being closed off by a partisan high court majority.
That’s why US Senator Bernie Sanders, the Vermont independent who has emerged as a leading proponent of moves to amend the US Constitution to restore the rule of law in elections, says: “The U.S. Supreme Court’s absurd 5-4 ruling two years ago in Citizens United was a major blow to American democratic traditions. Sadly, despite all of the evidence that Americans see every day, the court continues to believe that its decision makes sense.”
When billionaires can “spend hundreds of millions of dollars to buy this election for candidates who support the super-wealthy,” argues Sanders, “this is not democracy. This is plutocracy. And that is why we must overturn Citizens United if we are serious about maintaining the foundations of American democracy.”
Sanders says he will step up his efforts to enact a constitutional amendment to overturn not just the Citizens United ruling but the democratically disastrous rulings that extend from it.
“In his famous speech at Gettysburg during the Civil War, Abraham Lincoln talked about America as a country ‘of the people, by the people and for the people.’ Today, as a result of the Supreme Court’s refusal to reconsider its decision in Citizens United, we are rapidly moving toward a nation of the super-rich, by the super-rich and for the super-rich,” explains Sanders. “That is not what America is supposed to be about. This Supreme Court decision must be overturned.”
By: John Nichols, The Nation, June 25, 2012
“Horribly Misguided”: Supreme Court Again Smacks Down Campaign-Finance Reformers
The Supreme Court’s rejection of a long-shot legal challenge to let states bar corporate and union political contributions in their own elections underscores the legal quandary in which many left-of-center campaign finance reformers find themselves.
The court, in a 5-to-4 vote split along ideological lines, refused on Monday to strike down a Montana ban on corporate political spending. The decision effectively upholds its landmark 2010 decision Citizens United v. Federal Election Commission, which held that corporations and unions were entitled to the same free speech protections as citizens, or at least allow state law to supersede it.
Because the Supreme Court decided Citizens United only two years ago and its conservative majority remains intact, few legal experts expected it to rule in favor of the challenge.
The current case, American Tradition Partnership v. Bullock, stemmed from a century-old Montana law that prohibits corporations from spending money on political campaigns. The effort, joined by more than 20 states, stipulated states should be allowed to carve out their own rules to regulate political fundraising and spending, an argument backed by the Montana Supreme Court when it ruled in favor of the state law last year.
But the Supreme Court, in a one-page per curiam opinion that shut the door on the possibility of oral arguments, curtly dismissed the notion that federal law didn’t apply.
The Citizens United decision, combined with other court cases and FEC rulings, has dramatically loosened fundraising and spending regulations for independent political organizations, which have proliferated since 2010 and become a major force in campaigns. Effort to curb the spending through the judiciary have thus far proven fruitless; Paul Ryan, senior counsel to the Campaign Legal Center, a left-of-center interest group, called the ruling “disappointing but predictable.”
“Unfortunately the only surprise would have been if the Supreme Court had taken the opportunity to revisit its horribly misguided decision in Citizens United,” Ryan said. “Clearly, the Supreme Court has decided to wash its hands of the disastrous results of its earlier decision. Apparently the same five Justices who gave us Citizens United are not troubled by the fact that special interests are picking the winners and losers in our federal and state elections.”
In a dissent, Justice Stephen Breyer agreed. He reiterated his existing objection to the Citizens United decision, arguing that the proliferation of political spending amounted to a quid pro arrangement between politicians and political spenders. He also backed the state’s right to decide on its own whether corporate spending constituted to a corrupting influence, the threshold conservative justices have argued laws must pass to be constitutional.
“Thus, Montana’s experience, like considerable experience elsewhere since the Court’s decision in Citizens United, casts grave doubt on the Court’s supposition that independent expenditures do not corrupt or appear to do so,” Breyer wrote.
But even as the liberal justice signaled he would like to reconsider Citizens United, he acknowledged the court’s unchanging conservative majority means he doubts there is a “significant possibility” the court will reverse itself — something that left conservatives pleased.
“This closes the door on the argument that unique facts in a certain state can be employed to overturn [Citizens United],” said Jim Bopp, an Indiana campaign finance attorney who has spearheaded an array of challenges to campaign finance laws across the country. “Further, it means that independent expenditures are never corrupting as a matter of federal constitutional law.”
Senate Minority Leader Mitch McConnell, a longtime advocate for loosening campaign finance regulations, hailed it as “another important victory for freedom of speech.”
“Clearly, the much predicted corporate tsunami that critics of Citizens United warned about simply did not occur,” he said in a statement.
By: Alex Roarty, The Atlantic, June 25, 2012
Democratize The “Mother’s Milk Of Politics”: How To Beat Citizens United
We are about to have the worst presidential campaign money can buy. The Supreme Court’s dreadful Citizens United decision and a somnolent Federal Election Commission will allow hundreds of millions of dollars from a small number of very wealthy people and interests to inundate our airwaves with often vicious advertisements for which no candidate will be accountable.
One would like to think that the court will eventually admit the folly of its 2010 ruling and reverse it. But we can’t wait that long. And out of this dreary landscape, hope is blossoming in the state of New York. There’s irony here, since New York is where a lot of the big national money is coming from. No matter. The state is considering a campaign finance law that would repair some of the Citizens United damage, and in a way the Supreme Court wouldn’t be able to touch.
The idea is that to offset the power of large donors, citizens without deep pockets should be encouraged to flood the system with small contributions that the government would match. Gov. Andrew Cuomo (D) has pledged to a state overhaul of this sort, based on the one already in force for New York City elections. In his state of the state address in January, Cuomo spoke of how urgent it is to “reconnect the people to the political process and their government.” He could make himself into a reform hero across the country if he and the Legislature created a model law for other states, and the nation.
The New York City program is straightforward: The government gives participating candidates $6 in matching funds for every dollar raised from individuals who live in the city, up to the first $175. At a maximum, this means a $175 contribution is augmented by $1,050 in public funds. That’s a mighty incentive for politicians to involve more citizens in paying for campaigns. In the city system, participating candidates have to live within certain spending and contribution limits. In a new statewide system, there are likely to be no spending restrictions but lower limits on contributions.
The beautiful thing is that this approach should answer most of the criticisms offered by those who defend the Citizens United world. I say “should” because advocates of current arrangements will find a way to oppose any reforms. But the New York Revolution, if it happens, would undercut many of their arguments — including their constitutional claims.
The New York reform does not limit anyone’s capacity to participate. It creates incentives for more people to participate. It does not reduce the amount of political speech. It expands the number of people speaking through their contributions. It does not protect incumbents. On the contrary, it opens the way for candidates who might otherwise be driven from the competition by established politicians with access to traditional funding sources.
In short, it makes our democracy democratic again.
And it works. A study of the New York City program published recently by Michael Malbin, executive director of the nonpartisan Campaign Finance Institute, and his co-authors Peter W. Brusoe and Brendan Glavin concludes that the evidence “suggests that multiple-matching funds can stimulate participation by small donors in a manner that is healthy for democracy.”
In particular, they discovered that the reform substantially increased involvement by residents of poor and minority neighborhoods. Suddenly, politicians are hanging around with people other than those with yachts, private jets and complicated tax breaks. Malbin and his colleagues put it more soberly: A matching-funds approach means politicians “spending time with a more diverse set of constituents than he or she would if all of his or her fundraising engaged the upper middle class and rich.”
As for those who object to “taxpayer financing of elections,” consider that a candidate doesn’t get a dime unless he or she raises money from willing private donors. Besides, the Malbin paper notes, “political and civic participation are public goods” and elections “are, after all, the public’s business.” Conservatives fond of vouchers in so many other areas should see this as an opportunity to create Democracy Vouchers.
It will take courage for incumbent politicians to risk establishing a bold new system that could put some of them in danger. But in the course of our history, New York has been a proudly innovative place. A nation looking for a way out from under the money regime created by Citizens United badly needs the example of politicians who believe in democracy enough to democratize the mother’s milk of politics.
By: E. J. Dionne, Jr, Opinion Writer, The Washington Post, April 22, 2012
“Insufficient Influence”: Mitt Romney’s “Ultrawealthy” Backer Wants Even More Political Control
In an interview with the Chicago Tribune, Ken Griffin, a hedge fund billionaire who is one of the 400 richest people in America, argued that the ultrawealthy in this country don’t have enough influence over politics. Griffin went on to say that the ultrawealthy “have a duty” to step forward and save the U.S. from what he says is a drift toward Soviet-style state control of the economy:
Q. I’m going to come back to this. But I want to touch on two more areas first. What do you think in general about the influence of people with your means on the political process? You said shame on the politicians for listening to the CEOs. Do you think the ultrawealthy have an inordinate or inappropriate amount of influence on the political process?
A. 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. Not for themselves, but for their kids and for their grandchildren and for the person down the street that they don’t even know …
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 U.S. is drifting toward a direction that has been the failed of experiment of the last century, I don’t understand. I don’t understand.
He also complained that this is a “very sad moment in [his] lifetime,” citing the now-familiar Republican charge that the Obama administration has “embraced class warfare.”
Griffin is the founder and CEO of Citadel Asset Management, a Chicago-based hedge fund. In recent years, has lavished some of his estimated $3 billion net worth on a wide variety of right-wing groups and Republican candidates.
He and his wife contributed $150,000 to the pro-Romney Super PAC, Restore Our Future, joining nine other billionaires who contributed a total of $2.8 million to the group during the second half of last year. Griffin has also contributed the maximum allowable amount directly to Mitt Romney’s campaign, $550,000 to Karl Rove’s American Crossroads Super PAC, $1.5 million to the Koch brothers’ Americans for Prosperity, $560,000 to the Republican Governors Association, $38,300 to the Republican National Committee, $72,900 to the National Republican Senatorial Committee, $30,000 to the National Republican Congressional Committee, the $5,000 maximum to Paul Ryan (R-WI)’s Prosperity PAC, and $4,000 to Majority Leader Eric Cantor’s (R-VA) Every Republican is Crucial PAC.
While Griffin has contributed to some Democratic candidates for federal office in the past (mostly those from his home state of Illinois or who sit on congressional committees overseeing taxation and the financial industry), over the two most recent election cycles he has given just $2,500 to one Democrat while contributing $55,300 to Republicans candidates, including Sens. Scott Brown (MA), Marco Rubio (FL), Dan Coats (IN), Pat Toomey (PA), and Mark Kirk (IL) and Reps. Ryan, Cantor, and Sean Duffy (WI).
Griffin said that ultrawealthy individuals like himself should “absolutely” be allowed to donate unlimited amounts to Super PACs and political campaigns, citing “rules that encourage transparency.” However, he added that he views actual transparency with “trepidation,” noting a successful campaign that progressives launched against Target after it made a post-Citizens United corporate contribution to a group supporting an extreme anti-gay Republican gubernatorial candidate in Minnesota.
By” Josh Dorner, Think Progress, March 10, 2012