“We Are The 99%” But The 1% Buy Elections
As the “Occupy” protests spread across the country with the slogan “we are the ninety-nine percent,” two reports released this week demonstrate how the top one percent are playing an increasingly outsized role in American elections.
The New Yorker reports on a conservative multimillionaire’s successful efforts to buy North Carolina’s elections, and a report from campaign finance reform groups describe how an elite group of donors have laundered unlimited contributions to presidential campaigns. Much of this influence was made possible by the U.S. Supreme Court’s <a title="reference on Citizens United” href=”http://www.sourcewatch.org/index.php?title=Citizens_United” target=”_self”>Citizens United decision, and anger over corporate influence in politics is helping fuel the populist uprisings in Manhattan, D.C., and around the country.
Dimestore Donor Dominates North Carolina Elections
James Arthur “Art” Pope, chairman and CEO of the Variety Wholesalers dimestore discount chain, has created a “singular influence machine” in North Carolina, using his family’s wealth to influence that state’s elections and promote right-wing ideology, according to a report by Jane Mayer in this week’s New Yorker magazine.
“The Republican agenda in North Carolina is really Art Pope’s agenda. He sets it, he funds it, and he directs the efforts to achieve it. The candidates are just fronting for him. There are so many people in North Carolina beholden to Art Pope—it undermines the democratic process,” says Marc Farinella, a Democratic political consultant.
Like the Koch brothers (whom Meyer profiled in the New Yorker last year), Pope grew up wealthy, inherited his family dimestore business, and has spent massive amounts of money funding organizations and candidates opposing environmental regulations, taxes, minimum wage laws, unions, and campaign-spending limits. In addition to their sizable personal fortunes, the Kochs and Pope can spend millions in corporate funds because their companies are privately held. Pope regards Charles and David Koch as friends, and is one of the four directors of the Koch-funded-and-founded Americans for Prosperity, to which he has donated over $2 million.
John Snow, a centrist Democrat who was defeated by Art Pope-funded attacks after three terms in state Senate, told the New Yorker, “[i]t’s getting to the point where, in politics, money is the most important thing.” Snow was expected to easily win reelection, but his Tea Party-affiliated candidate with no experience had a seemingly endless flow of money. “A lot of it was from corporations and outside groups related to Art Pope. He was their sugar daddy.”
Chris Heagerty was another Democratic candidate defeated by a flood of Pope-connected money. One ad depicted Heagerty, who is caucasian but has dark hair and complexion, as Hispanic. “They slapped a sombrero on a photo of me, and wrote, ‘Mucho Taxo! Adios, Señor!’” Heagerty told the magazine. “If you put all of the Pope groups together, they and the North Carolina G.O.P. spent more to defeat me than the guy who actually won.” According to the article, he fell silent, then added, “For an individual to have so much power is frightening. The government of North Carolina is for sale.”
“We didn’t have that before 2010,” said Bob Phillips, head of Common Cause North Carolina. “Citizens United opened up the door. Now a candidate can literally be outspent by independent groups. We saw it in North Carolina, and a lot of the money was traced back to Art Pope.”
According to an analysis by the Institute for Southern Studies, Pope, his family, and their organizations targeted twenty-two legislative races and won eighteen. The wins placed both chambers of North Carolina’s General Assembly under Republican majorities for the first time since 1870. Three-quarters of “independent expenditures” in North Carolina’s 2010 state races — spending made independently of a candidate or their committee — came from accounts linked to Pope.
Wealthy Elites’ Influence on Elections Grows, Post Citizens United
In the post Citizens United era, the outsize influence of a small group of wealthy donors making “independent” expenditures is not limited to North Carolina, according to a report released this week by Democracy 21, the Campaign Legal Center, and the Center for Responsive Politics. A handful of elite donors are capitalizing on the lawless campaign finance environment to exceed federal candidate contribution limits. Individuals have spent as much as a million dollars supporting Mitt Romney’s bid for president, and two million to support President Obama’s reelection.
“Super PACs” emerged in the wake of the Citizens United decision, which struck down limits on corporate independent expenditures. Super PACs can now raise unlimited amounts of money from individuals, corporations, and unions, and use it on political ads for or against federal candidates. They are not allowed to donate directly to candidates or coordinate with their campaigns.
In striking down corporate independent expenditure limits, the U.S. Supreme Court upheld limits on individual contributions to candidates reasoning that “the potential for quid pro quo corruption distinguished direct contributions to candidates from independent expenditures.” The majority opinion stated “[t]he absence of prearrangement and coordination of an expenditure with the candidate or his agent not only undermines the value of the expenditure to the candidate, but also alleviates the danger that expenditures will be given as a quid pro quo for improper commitments.”
The first presidential race after Citizens United, though, reveals that the distinction between direct campaign contributions and “independent” expenditures has been eliminated — and with it, the idea that corruption follows one but not the other.
In the second quarter of 2011, over 50 individuals donated the legal maximum to Romney’s campaign ($2,500), then made around $6.4 million in additional contributions to Romney’s “Restore Our Future” Super PAC. Almost half of these individuals gave between $100,000 and $500,000 to the Super PAC, and one person donated $1 million. These donations made up half of the “Restore Our Future” funds.
Nine individuals donated to both President Obama’s reelection campaign and his “Priorities USA Action” Super PAC. The nine donors collectively gave $2.6 million to Obama’s Super PAC, primarily from Dreamworks CEO Jeffrey Katzenberg, who donated $2 million, and Chicago media mogul Fred Eychaner, who gave $500,000.
“This analysis offers yet more proof that these candidate-specific Super PACs are nothing more than an end-run around existing contribution limits,” said Paul S. Ryan, FEC Program Director at the Campaign Legal Center. “The Super PACs are simply shadow candidate committees. Million-dollar contributions to the Super PACs pose just as big a threat of corruption as would million-dollar contributions directly to candidates.”
In addition to Super PAC spending, corporations and corporate executives can also launder campaign spending through non-profit “social welfare” groups organized under section 501(c) of the tax code. Non-profits are not required to disclose their donors, preventing the public from knowing the source of a particular message. Last week, certain business leaders denounced this secret spending, and Democracy 21 and the Campaign Legal Center asked the Internal Revenue Service to investigate this alleged abuse of the tax code.
Ninety-Nine Percent: Money Out of Politics
The Citizens United decision affirmed that “money is speech,” and declared that spending limits violate the 1st Amendment rights of corporations and the uber-wealthy. As the 2012 presidential election heats up and election spending ramps up, corporations and the top 1% will speak louder than everyone else. The money that flows into the 2012 elections will come overwhelmingly from the top one percent — only a tiny sliver of Americans donate to political campaigns, and the bottom ninety-nine percent who can afford to contribute will have their dollars drowned out by the million-dollar contributions made possible by Citizens United.
And money matters. In modern elections, 9 out of 10 races are decided by who raises more campaign cash. Given this reality, it stretches the imagination to believe elected officials won’t be indebted to those deep-pocketed donors who help them get the edge over their opponent.
With average Americans — the ninety nine percent — sidelined by a political process and an economy that increasingly benefits only those at the top, they have taken to the streets. It is little wonder, then, that as the nascent Occupy protests grow and gain shape, at least one message is becoming clear: get corporate money out of politics.
By: Brendan Fischer, Center For Media and Democracy, October 7, 2011
GOP Congressman Equates Purchasing Health Insurance With Buying An Expensive Vacation Home
Just when you thought it could not get more ridiculous, GOP Congressman and Chairman of the House Appropriations Labor-Health and Human Services subcommittee, Denny Rehberg, has come up with a novel idea. He wants the Congressional super committee to solve $1.2 trillion in deficit reduction by simply killing off the expansion of Medicaid and the subsidies that will open the door to health care for millions of Americans.
In making his argument, Rehberg noted that expanding the Medicaid safety net program, and providing subsidies to low and middle class workers, is akin to the “expensive vacation home” that the average American would choose not to buy if that American was facing a deficit as serious as the nation’s.
Before getting to the heart of Rehberg’s suggestion, one can’t help but wonder what makes the Congressman think that the “average” American can afford an expensive vacation home (or any vacation home for that matter) on what the average American earns, even if that American is not in debt?
But should we be surprised by the Congressman’s view of the world? This is the same Denny Rehberg who is not only listed as number 23 on the list of the wealthiest members of Congress, but is the same Congressman Rehberg who had no idea what the minimum wage was in his own state (check out this video as it is priceless.)
Of course, far more important is Rehberg’s inability to grasp that getting treatment for cancer or unblocking that clogged artery that is going to make someone a widow or widower is not quite the same as purchasing a vacation home—expensive or otherwise.
And while life might not be worth living for Rep. Rehberg and friends without that idyllic home on the lake, the average American would still prefer to remain alive, thank you very much, which is precisely why Medicaid coverage was extended to more people and subsidies are to be made available to the working poor and middle-class so that medical care will become an option in their lives.
When asked how low and middle class Americans will manage to purchase health care, should the mandate requiring them to do so be found to be Constitutional by SCOTUS, Rehberg answered that Health and Human Services would be able to grant waivers to those who cannot afford coverage without Medicaid or subsidies.
Thus, Rehberg’s solution is to simply leave millions of Americans without coverage by way of a waiver. Nice.
Health Care For America Now’s Executive Director, Ethan Rome, put it this way:
Rep. Rehberg’s proposal is yet another part of the Republican assault on the middle class. Denny Rehberg says that basic health care is a luxury item, as if a mother in Montana taking her children to the doctor or a cancer patient getting treatment is the same as buying ‘an expensive vacation home.’
Considering that estimates place the uninsured under age 65 in Montana at somewhere between 16 percent and 20 percent of the population, a number well in excess of the national average, I suspect that Rehberg’s fellow Montanan’s might disagree with his approach.
Let’s hope they voice that disagreement at the ballot box next November.
By: Rick Ungar, Mother Jones, October 6, 2011
“Occupy Wall Street” Picks Up Where The Tea Party Sold Out
The federal bank bailout masterminded by President George W. Bush and his Treasury Secretary Henry Paulson ignited the grassroots anger that created the Tea Party. But the populist group betrayed its roots when it went corporate in 2009 after the friendly takeover by Rupert Murdoch and the Koch brothers. The Tea Party sellout may be the reason why the group’s negative ratings have doubled in national polls in the last year.
The Tea Party had every right to be angry in the fall of 2008. The finance industry spent $64 million lobbying Washington in 2008, and the bankers and hedge fund managers got a great return on their investment. The feds came up with $770 billion dollars to bail out the bankers and billionaires who created the economic meltdown that led to millions of Americans losing their jobs and then their homes.
Americans were justifiability horrified at the single biggest federal welfare payment of all time. Not only did the feds bailout out Wall Street but they failed to do anything to help the millions of Americans who lost everything they had because of corporate wrongdoing. Meanwhile, Citibank used $15 million of their fed bailout bucks to buy the naming rights to the new stadium built for the New York Mets.
National surveys show that large majorities of Americans favor ending federal tax freebies for bankers, billionaires, hedge fund managers, and corporate jet setters. The public also wants to end tax giveaways for the oil companies and the Benedict Arnold corporations that send American jobs overseas. But few people in Washington listen, the Tea Party punted, and thousands of courageous Americans are taking to the streets.
To add fuel to the fire, the Bank of America announced this week that it would charge consumers $5 a month to use their own debit cards. After the Tea Party became a subsidiary of corporate America, it was just a matter of time until somebody rushed into the vacuum to channel the hostility that exists towards big business.
By: Brad Bannon, U. S. News and World Report, October 6, 2011
Grover Norquist “Is Paralyzing Congress”
Rep. Frank Wolf (R-Va.) is one of just six Republican in Congress who haven’t signed Grover Norquist’s anti-tax pledge. On the House floor Tuesday, he attacked Norquist for single-handedly enforcing this hard line within the GOP, creating a destructive impasse in the legislative process. “Everything must be on the table and I believe how the ‘pledge’ is interpreted and enforced by Mr. Norquist is a roadblock to realistically reforming our tax code,” Wolf said. “Have we really reached a point where one person’s demand for ideological purity is paralyzing Congress to the point that even a discussion of tax reform is viewed as breaking a no-tax pledge?”
Wolf also attacked Norquist personally, claiming that he has “deep ties to supporters of Hamas and other terrorist organizations,” as well as to Jack Abramoff and other “unsavory groups and people.” Norquist fired back by accusing Wolf of racism. “I’m married to a woman who’s Muslim, and it’s sad and it’s disgusting,” Norquist told Yahoo News. “He’s going to spend a lot of time apologizing for getting into the gutter and anti-Arab and anti-Muslim bigotry.” Norquist claims Wolf is targeting him because he’s been unable to persuade his colleagues to budge on their anti-tax pledge.
Americans for Tax Reform continued the counterattack on Wolf in a series of e-mail blasts on Tuesday evening. “Frank Wolf Admits He Supports Trillions in Tax Hikes,” ATR titled one e-mail, calling the congressman’s support for the Bowles-Simpson commission’s recommendations an endorsement of a “net tax increase of $1-3 trillion over ten years.” (In fact, Bowles-Simpson raises $2.3 trillion in revenue by lowering rates but eliminating deductions and exclusions.) ATR also accused Wolf of borrowing the “Obama/DCCC Playbook to Craft Lies About the Tax Pledge,” saying that the pledge allows for the elimination of tax breaks so long as overall level of taxation doesn’t increase.
Wolf’s hit on Norquist was an unusually open attack by a conservative against the anti-tax absolutism that Congressional Republicans have almost uniformly embraced. But there have been earlier signs of this rift within the GOP. Sen. Tom Coburn (Okla.), a staunch fiscal conservative, pitted himself against Norquist by proposing to eliminate tax breaks for ethanol. Norquist insisted that ending such subsidies would only be acceptable if the revenue was used to pay for more tax cuts.
Wolf, in fact, referred to Coburn’s feud in his denunciation on the House floor yesterday: “When Senator Tom Coburn recently called for eliminating the special interest ethanol tax subsidy, who led the opposition? Mr. Norquist.” The question is whether other Congressional Republicans will join Wolf and Coburn in openly pushing back against the Norquist, anti-tax orthodoxy that has been at the heart of the bipartisan struggle to reduce the deficit.
Update: Another Republican is pushing now back against Norquist. Sen. John Thune (S.D.), who signed the ATR anti-tax pledge, suggested that such pledges could be broken to achieve broad-based tax reform in a Wednesday interview with MSNBC.
By: Suzy Khimm, The Washington Post, October 5, 2011
They Don’t Like You, Mitt. They Really Don’t Like You
Republican moneymen and pundits are starting to flock to the Mitt Romney banner, sending forth the word that it is time to bow to the inevitable. But the Republican voters just do not like Mitt Romney.
The depth the of the base’s resistance to falling in behind next-in-line Romney has continuously shocked observers, resulting first in the rise of Donald Trump, then Michele Bachmann, then Rick Perry. Now Perry is swooning, and his support has gone to … Herman Cain!
In the latest Washington Post poll, Perry’s support has halved over the last month, but Romney remains stuck at 25 percent. Cain has risen to 16 percent. The new CBS poll has Cain tied, at 17 percent, for first place with Romney. PPP polled Republicans in North Carolina, Nebraska, and West Virginia, and found Cain leading in all three states.
I don’t think Cain can win the nomination, and I’m not sure he really wants it (as opposed to a nice Fox News gig.) Saying you might vote for Herman Cain for president — of the United States, not of a pizza chain — can only be read as a cry of protest.
I don’t see how Republicans could be making this any more plain. They do not want to nominate Mitt Romney.
His problem is summed up neatly by today’s The Wall Street Journal editorial:
The main question about Mr. Romney is whether his political character matches the country’s huge current challenges. The former Bain Capital CEO is above all a technocrat, a man who believes in expertise as the highest political virtue. The details of his RomneyCare program in Massachusetts were misguided enough, but the larger flaw it revealed is Mr. Romney’s faith that he can solve any problem, and split any difference, if he can only get the smartest people in the room. …Republicans need a nominee who can make the opposing case on practical and moral grounds, not shrink from it out of guilt or excess political caution.
This encapsulates the main difference between the two parties. I’ve made this point many times before, but I think it’s pretty fundamental. The conservative movement is committed to a series of strong philosophical principles about government. They believe in a smaller government that takes less from the rich on moral grounds, as the Journal says. The Democratic Party does not have the same kind of deeper philosophical commitment, and is much more comfortable with technocracy.
Romney’s technocratic skills are not only not a plus for him. For many conservatives, they are something close to a disqualification. On many of the largest public issues, the technocratic consensus binds the center-right with the center-left and excludes the Republican position. Technocrats generally agree that we should increase short-term deficits while simultaneously decreasing long-term deficits through a combination of reducing tax expenditures and entitlement spending. There’s a somewhat less strong technocratic consensus that we should find a way to put a price on carbon emissions. These are all policies supported by the Obama administration and fiercely opposed by the GOP because they do violence to conservative anti-government principles.
Conservatives don’t want a president who’s open to different means of achieving ends (ending the recession, controlling health care costs.) They want somebody who’s set in stone on using the right means — less government.
Romney, because of the bizarre succession of real and potential foes removing themselves from consideration, may win the nomination by default. But the mismatch between him and the party he wants to lead is not going away.
By: Jonathan Chait, Daily Inte, New York Magazine, October 5, 2011
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