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HARD, SOFT and DARK MONEY Introduction Early Political Scandals
HARD, SOFT AND DARK MONEY Introduction Early political scandals involved money used for bribery or buying votes. Modern day scandals involve the appearances of corruption depending where gifts and campaign money came from. The U.S. Supreme Court has made a number of controversial decisions expanding the amounts of money in politics by characterizing political donations and expenditures to be exercises of freedom of speech. Among other results, those decisions have created a large and growing category of election related donations and contributions called “dark money.” Important Terms Defined Terms relating to money in politics that are used in this paper have definitions more exactly set out by law. These terms are fully addressed in the MIP paper Definitions for Money in Politics, Disclosure Requirements for PACs The relationships of PACs to their disclosure requirements are shown in the chart below. May Funding Disclosure Donations coordinate Corporations Sources required limited with can donate candidate Political parties PAC’s Super Pac’s 527’s 501(c)’s Dark Money Twenty-nine types of corporations are listed in §501(c) of the Internal Revenue Code (IRC) as qualified for nonprofit status. Social Welfare Organizations under §501(c) (4), Labor Unions under §501(c)(5), and Trade Associations under §501(c)(6) of the Internal Revenue Code are not required to report from whom they get their donations. Hence these donations are referred to as dark money. Since social welfare or business interests often intersect with political issues, these groups are allowed to use funds to influence elections, but there is otherwise no dollar limit on how much that can be, and they only need to report the majority of their expenditures in general terms. -
Parting the Dark Money Sea: Exposing Politically Active Tax- Exempt Groups Through FEC-IRS Hybrid Enforcement
William & Mary Law Review Volume 57 (2015-2016) Issue 1 Article 7 10-2015 Parting the Dark Money Sea: Exposing Politically Active Tax- Exempt Groups Through FEC-IRS Hybrid Enforcement Carrie E. Miller Follow this and additional works at: https://scholarship.law.wm.edu/wmlr Part of the Election Law Commons, and the Tax Law Commons Repository Citation Carrie E. Miller, Parting the Dark Money Sea: Exposing Politically Active Tax-Exempt Groups Through FEC-IRS Hybrid Enforcement, 57 Wm. & Mary L. Rev. 341 (2015), https://scholarship.law.wm.edu/wmlr/vol57/iss1/7 Copyright c 2015 by the authors. This article is brought to you by the William & Mary Law School Scholarship Repository. https://scholarship.law.wm.edu/wmlr PARTING THE DARK MONEY SEA: EXPOSING POLITICALLY ACTIVE TAX-EXEMPT GROUPS THROUGH FEC-IRS HYBRID ENFORCEMENT TABLE OF CONTENTS INTRODUCTION ....................................... 343 I. TAX LAW AND ELECTION LAW FOUNDATIONS ............. 346 A. Internal Revenue Code Provisions ................... 347 1. Section 501(c)(4) Social Welfare Organizations ...... 347 2. Section 527 Political Organizations ............... 349 B. Campaign Finance Doctrinal Framework ............ 350 1. Statutory Basis and Underlying Values ............ 350 2. Evolving Case Law ............................. 351 II. ESCALATING POLITICAL ACTIVITY OF TAX -E XEMPT SOCIAL WELFARE ORGANIZATIONS : WHERE TAX LAW AND ELECTION LAW INTERSECT ........................... 354 A. IRS Treatment of Political Activity .................. 355 1. Conflicting Threshold Standards ................. 355 2. Vague Definitional Problem ...................... 357 B. Section 501(c)(4) Organizations Have Emerged as the Preferred Campaign Finance Vehicle ................ 359 1. Increased Independent Expenditures .............. 360 2. Relaxed Reporting Provisions .................... 363 3. The Coordination Problem ....................... 367 C. Deregulation’s Impact on Values that Support Campaign Finance Restrictions ................... -
Fighting Dark Money
Your Citizen Tool Kit: Fighting Dark Money Help Bring Transparency to Campaign Giving and Spending Table of Contents: Issue Brief 3 A Model of Success 8 Progress Report 12 Additional Readings 25 Other Helpful Organizations 27 !2 Brought to you by: ReclaimTheAmericanDream.org Issue Brief: Fighting Dark Money How Dark Money Haunts U.S. Elections In modern American politics, the first omen that “dark money” was corrupting American democracy were revelations that bundles of cash and checks were being delivered in brown paper bags and suitcases to President Richard Nixon’s re-election campaign in 1972. In a few short weeks, CREEP, as the Committee for the Re-Election of the President was called, hauled in roughly $20 million – $100 million in today’s dollars – half of it from a handful of super donors. That river of money all moved in secret, rushed to campaign operatives to beat the imminent deadline for disclosure of campaign contributions set by the new Federal Election Campaign Act of 1971. After the secret Nixon slush fund was exposed, Congress tightened campaign laws again in 1974, setting spending limits and providing public funding for presidential campaigns. Disclosure as the Disinfectant for Tainted Money But the foundation stone of campaign reform, then as now, was disclosure – transparent openness about the sources of political money. Full disclosure was the disinfectant prescribed in the Nixon era to kill the epidemic of tainted money and to cleanse the nation’s political system. In the decades since then, disclosure has been the one campaign reform that has won general endorsement from conservatives as well as liberals and moderates. -
Will “America First” Leave America Alone? – the Trump Administration’S Trade Policy in the Indo-Pacific Region Author Darah Phillip by Darah Phillip
Special Article 2 Will “America First” Leave America Alone? – The Trump Administration’s Trade Policy in the Indo-Pacific Region Author Darah Phillip By Darah Phillip President Donald Trump withdrew the United States from the Trans- ties with the US. Pacific Partnership (TPP) in one of his first acts in office on Jan. 24, For the US and Japan, the TPP created an opportunity for the two 2017. The withdrawal was an early demonstration of his nationalistic, countries to pursue an economic relationship to match and “America First” trade philosophy. Trump’s initial argument behind complement their longstanding bilateral security alliance. Under the leaving the TPP was that the US, and American workers in particular, guise of tying Japan’s economy with that of the US, the TPP enabled would be worse off in the trading bloc. He also insisted that he was a Japanese negotiators to counter domestic resistance to trade in areas tougher negotiator than former President Barack Obama and that he such as agriculture by leaning on the strategic imperative of using the could negotiate a better deal for Americans. Three and a half years agreement to mitigate Japan’s growing economic dependence on after leaving the TPP, however, the Trump administration has not China. produced a trade framework in the Indo-Pacific region to surpass, let The TPP was also expected to encourage growth in US trade with alone rival, the TPP. Instead, the US may be more isolated from its Vietnam and Malaysia, two countries with high trade barriers and yet economic partners in the region today than it was in 2016. -
The Case of Donald J. Trump†
THE AGE OF THE WINNING EXECUTIVE: THE CASE OF DONALD J. TRUMP† Saikrishna Bangalore Prakash∗ INTRODUCTION The election of Donald J. Trump, although foretold by Matt Groening’s The Simpsons,1 was a surprise to many.2 But the shock, disbelief, and horror were especially acute for the intelligentsia. They were told, guaranteed really, that there was no way for Trump to win. Yet he prevailed, pulling off what poker aficionados might call a back- door draw in the Electoral College. Since his victory, the reverberations, commotions, and uproars have never ended. Some of these were Trump’s own doing and some were hyped-up controversies. We have endured so many bombshells and pur- ported bombshells that most of us are numb. As one crisis or scandal sputters to a pathetic end, the next has already commenced. There has been too much fear, rage, fire, and fury, rendering it impossible for many to make sense of it all. Some Americans sensibly tuned out, missing the breathless nightly reports of how the latest scandal would doom Trump or why his tormentors would soon get their comeuppance. Nonetheless, our reality TV President is ratings gold for our political talk shows. In his Foreword, Professor Michael Klarman, one of America’s fore- most legal historians, speaks of a degrading democracy.3 Many difficulties plague our nation: racial and class divisions, a spiraling debt, runaway entitlements, forever wars, and, of course, the coronavirus. Like many others, I do not regard our democracy as especially debased.4 Or put an- other way, we have long had less than a thoroughgoing democracy, in part ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– † Responding to Michael J. -
Money in Politics
CARR CENTER FOR HUMAN RIGHTS POLICY 1 FALL 2020 ISSUE 2020 - 003 CARR CENTER FOR HUMAN RIGHTS POLICY HARVARD KENNEDY SCHOOL Money in Politics Reimagining Rights & Responsibilities in the U.S. 2 CARR CENTER FOR HUMAN RIGHTS POLICY Reimagining Rights & Responsibilities in the United States: Voting Rights Carr Center for Human Rights Policy Harvard Kennedy School, Harvard University November 18, 2020 John Shattuck Carr Center Senior Fellow; Former US Assistant Secretary of State for Democracy, Human Rights, and Labor; Professor of Practice, Fletcher School, Tufts University Mathias Risse Lucius N. Littauer Professor of Philosophy and Public Administration; Director for the Carr Center for Human Rights Policy The authors’ institutional affiliations are provided for purposes of author identification, not as indications of institutional endorsement of the report. This report is part of a Carr Center project on Reimagining Rights and Responsibilities in the United States, directed by John Shattuck. The project has been overseen by a faculty committee chaired by Mathias Risse, with the collaboration of Executive Director Sushma Raman, and the support of the Carr Center staff. This research paper was drafted by Kate Williams (RA). The authors are grateful to Michael Blanding and Mayumi Cornejo for editing, and Alexandra Geller for editorial and design. CARR CENTER FOR HUMAN RIGHTS POLICY 1 Table of Contents 2. Introduction 3. Early Efforts to Regulate Campaign Finance 5. Campaign Finance, Freedom of Speech, and the Rise of Soft Money 6. Enhanced Disclosure and Transparency 7. Challenges to the Bipartisan Campaign Reform Act 9. Citizens United and Subsequent Rulings 10. Money in Politics Today: Undermining the Democratic Process 12. -
Dark Money Matters
Dark Money Matters Dark money—that is, election-related spending whose donors are kept secret from voters—continues to play a major and troubling role in U.S. elections, thanks to a series of U.S. Supreme Court decisions and weak rules and enforcement by the Federal Election Commission (FEC). Most Dark Money Spending Is Never Reported In the years since Citizens United, at least $800 million in dark money has been reported to the FEC. But even that number is an underestimate. FEC data omits a huge chunk of secret funds, because most dark money spending is never “Most dark money is reported to the FEC. Candidate-focused ads that stop short of expressly telling spent outside FEC viewers to vote for or against a candidate are only reported to the FEC if they reporting windows.” air within 30 days of a primary or 60 days of the general election. Most dark money is spent outside of these FEC reporting windows. For example, Karl Rove’s dark money group One Nation spent $40 million on advertising during the 2016 election cycle supporting vulnerable Republican Senators. Yet, because most of that spending was for ads outside of FEC reporting windows, One Nation reported spending only $3.4 million to the FEC. One Nation Spending, 2016 Election Cycle 3.4 million, 8% Spending Reported to the FEC Spending not Reported to the FEC 36.6 million, 92% CAMPAIGNLEGALCENTER.ORG What’s more, recent election cycles have seen the rise of what might be called “grey money,” where groups that don’t disclose their donors make “The actual sources of pass-through contributions to entities that do, like super PACs. -
Status of Ballot Measure 2— Alaskans for Better Elections
STATUS OF BALLOT MEASURE 2— ALASKANS FOR BETTER ELECTIONS - January 8: Alaskans for Better Elections turns in 41,068 Signatures from 40 of 40 House Districts. - February 19: Better Elections is the first ballot initiative to reach minimum certification requirements (~29,000 signatures verified by AK DOE, from 30 of 40 House Districts). - February 19: Scott Kendall, Legal Counsel and Chief Advisor to the Campaign, delivered oral arguments to the Alaska Supreme Court after an appeal to a lower court ruling in favor of the initiative was filed by the State of Alaska. The sole issue in the case is whether or not Ballot Measure 2 is constitutional under the Alaska Constitution’s single-subject rule. - March 9: The Alaska Division of Elections announces official Certification. - June 12: the Alaska Supreme Court affirms that Ballot Measure 2 will appear on the November ballot. - Read more about the constitutionality of all the components in Ballot Measure 2 here. SUMMARY Ballot Measure 2 seeks to give more choice, more voice, and more power to every Alaska voter by improving the way we elect our representatives. More Choice—Over 62% of Alaskans choose not to identify with either major political party, but yet their ability to vote for the candidate of their choice is restricted by the current partisan primary system. More Voice—Our current first-past-the-post elections allow a candidate in a race with three or more candidates to win without receiving the support of a majority of voters (50%+1). Voters are therefore discouraged from voting for more independent, community-oriented candidates that they may prefer for fear of helping elect the candidate they like the least. -
Consequences of US Trade Policy on EU-US Trade Relations and the Global Trading System
STUDY Requested by the INTA committee Consequences of US trade policy on EU-US trade relations and the global trading system Policy Department for External Relations Directorate General for External Policies of the Union PE 603.882 - November 2018 EN DIRECTORATE-GENERAL FOR EXTERNAL POLICIES POLICY DEPARTMENT STUDY Consequences of US trade policy on EU-US trade relations and the global trading system ABSTRACT The Trump Administration’s trade policy is driven by the belief that previous Administrations have let other countries take advantage of the United States for foreign policy reasons, as demonstrated by America’s more open trade regime and its trade deficits. It is determined to end this perceived imbalance by demanding reciprocity instead, and is willing to use tough tactics to achieve this through strict enforcement of its procurement and trade defense law; expansive tax provisions; bringing the WTO dispute settlement to a halt; withdrawing from and forcing others to renegotiate existing bilateral and multilateral agreements; adopting a novel “national security” argument to justify breaking WTO tariff commitments for steel, aluminum and possibly autos; and enacting punitive tariffs on billions of dollars of imports from China, possibly threatening a trade war. The scenarios for U.S.-EU trade relations as well as the global trading system are anything but rosy. The EU can stand up to the Administration’s “bullying,” or it can take advantage of America’s need for a “re- balancing” to build its own stature by taking simple steps to improve EU-U.S. trade, forging a way forward in the WTO, and providing necessary leadership to address the dangers China’s economic system poses to the global trading order. -
Private Equity Buyouts in Healthcare: Who Wins, Who Loses? Eileen Appelbaum and Rosemary Batt Working Paper No
Private Equity Buyouts in Healthcare: Who Wins, Who Loses? Eileen Appelbaum* and Rosemary Batt† Working Paper No. 118 March 15, 2020 ABSTRACT Private equity firms have become major players in the healthcare industry. How has this happened and what are the results? What is private equity’s ‘value proposition’ to the industry and to the American people -- at a time when healthcare is under constant pressure to cut costs and prices? How can PE firms use their classic leveraged buyout model to ‘save healthcare’ while delivering ‘outsized returns’ to investors? In this paper, we bring together a wide range of sources and empirical evidence to answer these questions. Given the complexity of the sector, we focus on four segments where private equity firms have been particularly active: hospitals, outpatient care (urgent care and ambulatory surgery centers), physician staffing and emergency * Co-Director and Senior Economist, Center for Economic and Policy Research. [email protected] † Alice H. Cook Professor of Women and Work, HR Studies and Intl. & Comparative Labor ILR School, Cornell University. [email protected]. We thank Andrea Beaty, Aimee La France, and Kellie Franzblau for able research assistance. room services (surprise medical billing), and revenue cycle management (medical debt collecting). In each of these segments, private equity has taken the lead in consolidating small providers, loading them with debt, and rolling them up into large powerhouses with substantial market power before exiting with handsome returns. https://doi.org/10.36687/inetwp118 JEL Codes: I11 G23 G34 Keywords: Private Equity, Leveraged Buyouts, health care industry, financial engineering, surprise medical billing revenue cycle management, urgent care, ambulatory care. -
Ballot Measure Two: Elections an Initiative Petition Is the Process That What Is a People, Instead of the Legislature, May Use to Ballot Introduce and Enact a Law
Ballot Measure Two: Elections An initiative petition is the process that What is a people, instead of the legislature, may use to Ballot introduce and enact a law. An initiative petition becomes state law if a Measure majority of voters vote Yes. Article 11 of the Alaska Constitution allows for (Initiative) initiatives An Act Replacing the Political Party The Primary with an Open Primary Initiative System and Ranked-Choice General Election, and Requiring Additional (Act) Title Campaign Finance Disclosures The initiative deals with 1. Primary Elections three 2. General Elections major 3. Campaign financing and disclosures topics: ➢The full text of the proposed law is 25 pages long and has 74 sections. ➢Sections 2-72 are primarily changes (amendments) to existing state election laws ➢The initiative is very detailed, similar to legislation introduced in the legislature ➢This initiative requires changes to multiple state laws in order to be implemented, including a number of ancillary changes to state election laws OFFICIAL ELECTION PAM PHLET State of Alaska The full text can be found in the Official Election Pamphlet – The Division of Elections celebrates the history of strong women of Alaska and women’s suffrage! Starting on page 139 or online at: https://www.elections.alaska.gov/petitions/19AKBE/19AKBE- TheBill.pdf Region II — Municipality of PAAnGcEh 1orage, Matanuska-Susitna Borough 2020 REGION II VOTE Novem ber 3, 20 20 An Act Replacing the Political Party Primary with an Open Primary System and Ranked-Choice General Election, and Requiring Additional Campaign Finance Disclosures This act would get rid of the party primary system, and political parties would no longer select their candidates to appear on the general election ballot. -
Trump, American Hegemony and the Future of the Liberal International Order
Trump, American hegemony and the future of the liberal international order DOUG STOKES* The postwar liberal international order (LIO) has been a largely US creation. Washington’s consensus, geopolitically bound to the western ‘core’ during the Cold War, went global with the dissolution of the Soviet Union and the advent of systemic unipolarity. Many criticisms can be levelled at US leadership of the LIO, not least in respect of its claim to moral superiority, albeit based on laudable norms such as human rights and democracy. For often cynical reasons the US backed authoritarian regimes throughout the Cold War, pursued disastrous forms of regime change after its end, and has been deeply hostile to alternative (and often non-western) civilizational orders that reject its dogmas. Its successes, however, are manifold. Its ‘empire by invitation’ has helped secure a durable European peace, soften east Asian security dilemmas, and underwrite the strategic preconditions for complex and pacifying forms of global interdependence. Despite tactical differences between global political elites, a postwar commit- ment to maintain the LIO, even in the context of deep structural shifts in interna- tional relations, has remained resolute—until today. The British vote to leave the EU (arguably as much a creation of the United States as of its European members), has weakened one of the most important institutions of the broader US-led LIO. More destabilizing to the foundations of the LIO has been the election of President Trump. His administration has actively