Published by CQ Press, an Imprint of SAGE Publications, Inc. www.cqresearcher.com Campaign finance Does big money in politics subvert democracy?

fter four decades of court decisions lifting restrictions on campaign spending, Americans are going to the polls this year in the most expensive presi - A dential campaign in U.S. history, financed mainly by a handful of wealthy individuals and business and labor groups . Public outrage over the big spending fuels some of the popularity of GOP billionaire Donald Trump’s largely self-financed campaign and that of Democratic Sen. Bernie Sanders of vermont, who is supported mostly by small individual donors. But money did not Demonstrators at the U.S. Capitol on April 12, 2016, demand an end to big money in politics. About 900 of help the top spender in the Republican presidential primaries: for - the Democracy Spring protesters, who had marched from Philadelphia to Washington, were arrested mer florida Gov. Jeb Bush abandoned his well-financed candidacy for obstructing traffic. amid weak voter support. Conversely, Sanders has run an unex - pectedly strong campaign against deep-pocketed former Secretary of State Hillary Clinton. Stymied by GOP congressional o pposition and partisan gridlock on the federal Election Commission , opponents I of big-dollar politics are successfully pushing some states and THIS REPORT N THE ISSUES ...... 411 cities to rein in election spending. But advocates of less regulation S BACKGROUND ...... 418 say limiting money in politics infringes on free speech. I CHRONOLOGY ...... 419 D CURRENT SITUATION ...... 424 E CQ Researcher • May 6, 2016 • www.cqresearcher.com AT ISSUE ...... 425 Volume 26, Number 18 • Pages 409-432 OUTLOOK ...... 427 RECIPIENT Of SOCIETY Of PROfESSIONAL JOURNALISTS AwARD fOR BIBLIOGRAPHY ...... 430 EXCELLENCE N AmERICAN BAR ASSOCIATION SILvER GAvEL AwARD THE NEXT STEP ...... 431 CAmPAIGN fINANCE

May 6, 2016 THE ISSUES SIDEBARS AND GRAPHICS Volume 26, Number 18 EXECUTIVE EDITOR: Thomas J. Billitteri • Does big money in politics 412 Conservatives Outspending [email protected] 411 subvert democracy? Liberals in 2016 Races ASSISTANT MANAGING EDITORS: Kenneth • Should corporations be re - They also spent more in the fireman, [email protected], quired to report all political three previous federal races. Kathy Koch , [email protected], Chuck mcCutcheon , spending? [email protected], • Should public funds help Conservative Super PACs 413 Lead 2016 Spending Scott Rohrer, [email protected] finance congressional, state Six have supported now- and local campaigns? SENIOR CONTRIBUTING EDITOR: inactive Republican candidates. Thomas J. Colin [email protected] Majority Opposes Citizens BACKGROUND CONTRIBUTING WRITERS: Brian Beary, 416 United Ruling marcia Clemmitt, Sarah Glazer, Kenneth Jost, four in five Americans say Reed Karaim, Peter Katel , Barbara mantel, 418 Curbing Political Money the 2010 decision should be Tom Price In 1876 Congress prohibited overturned. administrations from soliciting SENIOR PROJECT EDITOR: Olu B. Davis contributions from federal Guide to Campaign ASSISTANT EDITOR: Ethan mcLeod workers. 417 Finance Terms Concepts range from super INTERN: molly mcGinnis Dark Money 420 PACs to straw donors. FACT CHECKERS: Eva P. Dasher, Nonprofit donations prolifer - michelle Harris, Nancie majkowski, ated after a 1959 Treasury Chronology Robin Palmer rule change. 419 Key events since 1876. 422 Dismantling Restrictions More Firms Lifting Veil on Court decisions over four 420 Political Activities decades weakened spending Advocacy group finds trans - limits. parency on the rise. An Imprint of SAGE Publications, Inc. Pet Causes Spur Wealthy VICE PRESIDENT AND EDITORIAL DIRECTOR, CURRENT SITUATION 422 to Open Their Wallets HIGHER EDUCATION GROUP: from Israel to climate change, michele Sordi Super PACs 424 policy issues drive political EXECUTIVE DIRECTOR, ONLINE LIBRARY AND Top-spending political action giving. REFERENCE PUBLISHING: committees work closely with Todd Baldwin presidential campaigns. At Issue: 425 Does big money in politics Copyright © 2016 CQ Press, an Imprint of SAGE Pub - State, Local Actions subvert democracy? lications, Inc. SAGE reserves all copyright and other 426 Arizona and wisconsin re - rights herein, unless pre vi ous ly spec i fied in writing. cently loosened spending No part of this publication may be reproduced regulations. FOR FURTHER RESEARCH electronically or otherwise, without prior written permission. Un au tho rized re pro duc tion or trans mis - 426 Congress Stalls For More Information sion of SAGE copy right ed material is a violation of The Democratic minority 429 Organizations to contact. federal law car ry ing civil fines of up to $100,000. hopes to limit corporate spending. CQ Press is a registered trademark of Congressional Bibliography Quarterly Inc. 430 Selected sources used. CQ Researcher (ISSN 1056-2036) is printed on acid-free OUTLOOK The Next Step paper. Pub lished weekly, except: (march wk. 4) (may 431 Additional articles . wk. 4) (July wks. 1, 2) (Aug. wks. 2, 3) (Nov. wk. 4) 427 Supreme Court Is Key and (Dec. wks. 3, 4). Published by SAGE Publications, A new justice could reshape Citing CQ Researcher Inc., 2455 Teller Rd., Thousand Oaks, CA 91320. Annual campaign finance law. 431 Sample bibliography formats. full -service subscriptions start at $1,131. for pricing, call 1-800-818-7243. To purchase a CQ Researcher report in print or electronic format (PDf), visit www.cqpress. com or call 866-427-7737. Single reports start at $15. Bulk purchase discounts and electronic-rights licensing are also available. Periodicals postage paid at Thousand Cover: Getty Images/ CQ Roll Call /Al Drago Oaks, California, and at additional mailing offices . POST - mAST ER: Send ad dress chang es to CQ Re search er , 2600 virginia Ave., N.w., Suite 600, wash ing ton, DC 20037. 410 CQ Researcher Campaign finance BY TOM PRICE

PACs during the entire 2012 THE ISSUES campaign. 3 Right To Rise USA, which uring the run-up to spent $81 million supporting the 2016 political former florida GOP Gov. Jeb D campaigns last Au - Bush, so far has raised the most gust, five Republican presi - among super PACs, $121 mil - dential candidates along with lion. 4 Two-fifths of super PAC several governors, senators contributions came from just and U.S. representatives gath - 50 organizations and wealthy ered at the St. Regis monarch families. most — 36 — gave Beach, a luxury resort along to GOP organizations. 5 the Southern California coast. while most big donors have They were attending one of supported conservative causes, the twice-yearly conferences or - wealthy liberals contribute as ganized by conservative multi - well, though much less overall.

billionaire industrialists Charles h (See graph, p. 412. ) Since 2005, c s and David Koch, who invite u for example, the 100 members B

several hundred wealthy com - w of Democracy Alliance have e h patriots to discuss how to re - t raised and contributed more t make America according to con - a than $500 million to left-leaning M /

servative or libertarian beliefs. s think tanks, research organi - e g

Conversations in posh set - a zations and political support m I

6

tings are just part of their ef - y groups . t t forts to influence voters and e The cost of campaigning public affairs. The brothers’ G Billionaire businessman Donald Trump, the presumptive has soared since the Supreme far-flung network of affiliated GOP presidential nominee, arrives in Laredo, Texas, Court began lifting restrictions organizations seeks to change during a trip to the U.S.-Mexican border on July 23, on contributions and expen - federal, state and local policies, 2015. Grassroots anger over big money in politics has ditures in the 1970s, raising such as repealing the Afford - helped fuel support for Trump, whose campaign is fears that American democ - able Care Act (ACA), cutting largely self-financed, and Democratic Sen. Bernie Sanders of Vermont, whose $182 million war chest racy could be threatened by business regulations and re - mainly has come from small, individual contributions. the outsized influence of a ducing business subsidies. It few wealthy donors. includes a data-mining operation and of that money secret. And they are Supporters of reform are pushing cadres of organizers seeking to replicate just one example of how the very rich for stricter federal, state and local regu - political parties’ grassroots operations. — both conservatives and liberals — lations, but opponents seek to reduce Also part of the Koch operation are are helping to make this the most ex - or even eliminate spending restrictions. organizations that provide scholarships, pensive campaign season in history. while this year’s big spending on medical checkups and tax-preparation Spending to influence the presidential losing candidates Bush and Sen. marco services to various demographic groups, and congressional elections could reach Rubio of florida appears to negate such as Latinos, along with warnings $10 billion. 1 the idea that money controls elections, about the dangers of the ACA and the from early 2015 through April 29 grassroots anger over big money in minimum wage. of this year, 2,272 super PACs — political politics is helping to feed activism All told, the Koch brothers and their action committees that can raise and coalescing around non-mainstream wealthy associates plan to spend nearly spend unlimited amounts of money sup - candidates Republican Donald Trump, $900 million — later reduced to $750 plied largely by corporations, unions, a billionaire whose campaign is largely million — during the 2016 election associations and wealthy individuals — self-financed, and Democratic Sen. cycle. Using what The Washington Post reported raising $707 million and spend - Bernie Sanders of vermont, two-thirds described as “a labyrinth of tax-exempt ing $304 million, mostly on the presi - of whose $182 million war chest has groups and limited-liability companies,” dential race. 2 That’s nearly three-quarters come from small, individual contri - the Kochs can keep much of the source of the $828 million raised by super butions . 7

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for the presidential campaign during Conservatives Outspending Liberals in 2016 Races the first half of 2015 came from just The Republican Party and other conservative groups have spent 158 families and the companies they own or run. 10 During the 2014 cycle, more than $300 million so far in 2016 on candidates for Congress 100 individuals spent more on elections and the presidency — nearly nine times as much as the Demo - than the 4.75 million Americans who cratic Party and other liberal groups. Conservatives also outspent contributed $200 or less. 11 liberals in the three previous federal election cycles. Spending by The super-rich also can finance their both sides reached record levels in 2012, the year of the first own campaigns. By April 21, for in - presidential election after a controversial Supreme Court ruling stance, Trump had contributed or lent allowing unlimited campaign spending by private groups. $36 million to his campaign committee, which also received more than $12 mil - (in $ millions) Total Spending by Groups and $1,000 lion in individual contributions from Parties in Federal Elections, small and large donors. 12 800 by Par ty /Ideolog y multibillionaire media mogul and (1 99 0- 20 16 ) former New York City mayor michael 600 Bloomberg contemplated running for president as an independent before 400 Liberal opting out in march. He had spent Conservative 200 $261 million to win three mayoral terms, beginning in 2001. 13 0 Those who oppose campaign fi - 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016* nance reform say fears that big money * Through May 4, 2016 can sway elections are overblown, not - ing that Trump appears to have won Source: “Total Outside Spending by Election Cycle, All Groups,” Center for Responsive Politics, http://tinyurl.com/gofkzck the GOP race with a low-budget cam - paign and that Sanders early in the Public outrage about excessive political elections since 1907) and unions (whose race mounted an unexpectedly strong spending is reflected in “the surprising federal spending had been banned in challenge to former Secretary of State support for Senator Sanders, who has 1943). Also in 2010, a federal appeals Hillary Clinton despite her much larger made it a central part of his campaign, court tossed out limits on how much war chest. 14 and when Trump says he can’t be can be contributed to independent po - moreover, critics of limiting spending bought,” said wendell Potter, co-author litical organizations, opening the door say small donors are starting to supplant of the 2016 book Nation on the Take: to establishment of super PACs. wealthy ones in importance. “It’s be - How Big Money Corrupts Our Democracy • McCutcheon v. FEC (2014), in coming more possible to raise money and What We Can Do About It. 8 which the high court removed limits more quickly . . . by appealing to the Helping to fuel the flood of cam - on the total amount a person can con - general public” instead of wealthy donors, paign spending are GOP opposition tribute to all federal candidates, parties says David Keating, president of the Cen - to campaign restrictions, a federal Elec - and political action committees in each ter for Competitive Politics in Alexandria, tion Commission (fEC) paralyzed by two-year election cycle. 9 va., which advocates less regulation of partisan gridlock and a decades-long Regulatory rulings by the fEC and campaign finance. And big contributors erosion of regulation by Supreme Court the Internal Revenue Service (IRS) also can “max out” their ability to donate, rulings. Those rulings include: allowed some so-called social welfare he adds, while a candidate can repeatedly • Buckley v. Valeo (1976), in which organizations to spend without reveal - ask for more small donations. the court said the first Amendment’s ing the sources of their funds, enabling But supporters of finance limits say protection of free speech prevents Con - what has become known as the rise while money may not guarantee election gress from limiting spending by can - of anonymous or “dark money.” outcomes, it can unfairly influence post- didates and independent groups. The dismantling of political spending election government decisions because • Citizens United v. Federal Election limits means that today’s elections get legislators are especially sensitive to Commission (2010), which allowed much more fuel from billionaires, mul - policies championed by wealthy donors. campaign spending by corporations timillionaires and corporate and union Research shows that rich contributors (which had been banished from federal treasuries. Nearly half the money raised exert more influence over elected of -

412 CQ Researcher ficials’ decisions, essentially overriding the concept of one person, one vote, Conservative Super PACs Lead 2016 Spending says Richard Hasen, a professor of law The three highest-spending super PACs — Right to Rise USA, and political science at the University Conservative Solutions PAC and America Leads — in the 2016 of California, Irvine, School of Law, and author of the 2016 book Plutocrats election cycle have supported Republican candidates who dropped United: Campaign Money, the Supreme their campaigns because of weak voter support. Nine of the 10 Court, and the Distortion of American top-spending super PACs have spent a total of nearly $225 million Elections. (See “At Issue,” p. 425. ) backing conservative candidates or causes. Priorities USA Action, Eugene volokh, a UCLA law professor the only liberal super PAC among the top 10, has spent who opposes spending restrictions, says $5.7 million supporting Democrat Hillary Clinton. Hasen’s interest in political equality doesn’t “justify restricting speech.” Top-Spending Super PACs for 2016 Presidential Candidates, Numerous surveys show most Amer - in $ millions* icans agree with the reformers, however. In a New York Times /CBS News poll Name Ideology Amount Supports/Opposes last year, for instance, three-quarters Right To Rise USA Conservative $81.2 Supported Jeb Bush of respondents favored limiting con - Conservative Conservative $55.6 Supported Marco Rubio tributions and independent-group Solutions PAC spending and requiring disclosure of America Leads Conservative $18.5 Supported Chris Christie all political donations. 15 In other sur - veys, three-quarters or more said the Our Principles PAC Conservative $17.4 Opposes Donald Trump rich should not have more influence Great America PAC Conservative $13.1 Supports Donald Trump than others and that the Citizens United Club for Growth Conservative $11.5 None ruling should be overturned. 16 (See Action graph, p. 416. ) New Day For Conservative $10.9 Supported John Kasich with Republicans controlling Con - America gress and the makeup of the Supreme Court in flux, reformers have turned Keep the Promise I Conservative $9.4 Supported Ted Cruz to state and local governments. Legi s- Stand For Truth Conservative $9.0 Supported Ted Cruz lation and voter initiatives have estab - Priorities USA Action Liberal $5.7 Supports Hillary Clinton lished public financing of campaigns, stiffer transparency requirements and * Through May 4, 2016 other election changes. But regulation Source: “2016 Outside Spending, by Super PAC,” Center for Responsive opponents have changed some state Politics, http://tinyurl.com/mfczjv5 laws in their favor, as well. The 2016 elections could have a huge Does big money in politics subvert “The system is not an oligopoly of impact on the future of campaign fi - democracy? the top 1 percent or even the top .01 nance, legal observers say. Reform could During the first quarter of the current percent,” said Richard Painter, a Uni - hinge on which party controls state and presidential race — from the beginning versity of minnesota Law School pro - federal legislatures and executive offices. to the middle of last year — more cam - fessor and former ethics adviser to Re - And the february death of conservative paign donations came from three man - publican President George w. Bush. Supreme Court Justice Antonin Scalia hattan ZIP codes than from every ZIP “It is far worse than that.” 20 — coupled with Senate Republicans’ code in the country with a majority of That extreme imbalance subverts intention to prevent President Obama African-American residents, combined. 18 democracy because “when the money from filling that vacancy — could mean Even among the wealthy, big political comes from too few donors that have the next president will determine the donors are in the minority, according to too much influence, that creates a dis - future of campaign regulation. 17 a PNC Bank study, which found that tortion of our political process,” Hasen, As political spending soars to record only 30 percent of millionaires contributed the California law professor, says. The levels, here are some questions that to a political party or candidate during wealthy should not have a “much greater politicians, activists, scholars and rank- the 2014 election cycle, and just 9 percent chance than an average voter of having and-file citizens are debating: gave more than $1,000. 19 their preferred policies enacted into

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$1,000 editorializing for or against a can - didate,” he says. “we would say that’s clearly unconstitutional. Corporations that own newspapers have the right to speak. Corporations that don’t own newspapers have the same right to speak.” Celebrity can be more valuable than t n

o money, Keating says, citing Trump’s m r

e success while spending far less than i P some GOP candidates who dropped c i r

E out. “A big part of politics is having / s

e people know who you are,” he says. g a Trump has been famous for decades, m I

y having published a best-selling memoir, t t e The Art of the Deal , in 1987, and starring G /

P in his popular television show, “The F

A Apprentice,” which first aired in 2004. Billionaire hedge fund founder Tom Steyer of San Francisco has spent During his campaign, the news media $13 million so far in this election cycle pushing for liberal causes, particularly action against climate change. He spent more than $70 million on congressional have been drawn to Trump’s highly races during the 2014 cycle, making him the biggest spender in that election. controversial statements and devoted much more coverage to him than to law,” he has said. The “main problem voter apathy already may be hap - his opponents, which has diminished with money in U.S. politics is the trans - pening, according to the Center for his need for campaign cash. 27 lation of vastly unequal economic power Responsive Politics, a nonpartisan or - mediaQuant, an Oregon-based com - into unequal political power.” 21 ganization that tracks political money. pany that analyzes the commercial Some recent research appears to sup - During the 2014 congressional elections, value of news coverage, calculated that port Hasen’s contention. In 2013, graduate more money was spent on campaigns by the end of february 2016, the Trump students David Broockman of Berkeley than ever before in an off-year campaign campaign’s coverage was worth nearly and Joshua Kalla of Yale had 2,000 in - but turnout was the lowest since world $2 billion — more than twice Clinton’s dividuals request meetings with 191 U.S. war II, the center reported. 25 $746 million worth of coverage, the representatives. Half identified themselves But Keating of the Center for Com - second-most valuable. 28 in the emails as “local constituents,” while petitive Politics cites a study by Louisiana In fact, Trump’s coverage has “basi - half described themselves as “local cam - State University political science professor cally thrown all these arguments [about paign donors.” The self-described Robert Hogan that suggests high spend - the dangers of high spending] out the “donors” were five times more likely to ing increases turnout — at least in state window,” says Lisa Rickard, executive score meetings with either the member legislative elections. Hogan concluded vice president of the U.S. Chamber of or the member’s chief of staff. 22 in 2012 that “higher levels of campaign Commerce and president of the cham - Sen. Lindsey Graham of South Caro lina, spending” increased voter participation ber’s Institute for Legal Reform. an advocate of campaign-finance limits, in legislative contests that he studied in “Almost everywhere you look,” said also worries about unequal access. “what 20 states during two election cycles. 26 National Review Senior Editor Jonah Gold - I worry about is that we are turning Keating argues that high spending berg, who opposes Trump, “the super- campaigns over to about 100 people only allows the donors to buy more rich are being stymied by democracy.” 29 in this country, and they are going to speech, providing more information to Steven Law, president and CEO of be able to advocate their cause at the voters, so “there’s more debate about the conservative super PAC American expense of your cause,” he told New campaigns and elections, and that usu - Crossroads, said Super PACs are only Hampshire voters during his failed run ally seems to be a good thing.” “the amplification system, so . . . if for the GOP presidential nomination UCLA’s volokh says that throughout the music is lousy, it doesn’t matter if last year. 23 Eventually, he continued, American history, some people — such you turn it up. It’s still going to not “we’re gonna destroy American politics as celebrities and newspaper owners sound all that convincing.” 30 with so much money in the political — have had more influence than others. However, reformers say that while process ’cause they’re going to turn “Imagine if someone said, ‘Let’s ban money may not sway a presidential you off to wanting to vote.” 24 newspapers from spending more than election, it can influence less momen -

414 CQ Researcher tous ones. “The smaller the office — a state legislative office or a city or county office — the more a large amount of money is likely to have a big influence,” Hasen says, because r

such races get far less news coverage. e d a R

Should corporations be required to o B / e

report all their political spending? l g

So-called dark money — political a E

a spending by groups not required to reveal t i h c their donors — has soared from $5 million i W

during the 2006 election cycle to more / s e

than $174 million in the 2014 elections, g a

according to the Center for Responsive m I

y t

Politics. The more expensive 2012 elections t e drew more than $300 million in dark G money . 31 Conservative billionaire Charles Koch, above, CEO of Koch Industries, his brother David and their wealthy associates said they plan to spend $750 million — down Large dark contributions are expect - from an earlier $900 million — to influence voters and public policy during the ed again this year, but it takes watchdog 2016 election cycle. Charles Koch favors keeping the names of political donors groups some time to estimate spending secret because disclosure could invite retaliation against them. Already, he said, that isn’t clearly reported. “We get death threats, threats to blow up our facilities, kill our people.” with the Supreme Court overturning that must report what they spend. money organizations, he argued, “it many limits on campaign spending, re - Douglas Pinkham, president of the will become easier for big corporations formers have begun demanding that Public Affairs Council, a washington-based to give more without worrying about spending be made public. They are association of lobbyists and other pub - publicity. Arguably, this is already start - pressing corporations to disclose their lic-affairs professionals, says big businesses ing to happen.” spending voluntarily, asking the Securities probably do not supply much dark money Hasen, the California law professor, and Exchange Commission (SEC) — because “if found out, it looks like [they says “anybody who’s a major player which regulates the securities industry, are] trying to hide something.” in spending money to elect candidates including stock markets and the periodic many big corporations do, however, should have to disclose that publicly.” reports filed by publicly traded companies make dues and other payments to busi - Political spending can create business — to require disclosure of political ac - ness organizations such as the American risks that shareholders should know tivities and urging President Obama to Petroleum Institute or the U.S. Chamber about, says Bruce freed, president of order disclosure by government con - of Commerce, which participate in politics the Center for Political Accountability, tractors. Some federal and state lawmakers and do not have to disclose their sources which presses businesses to disclose have proposed legislation to require re - of income. And corporations overall are their political actions. “If you lived through porting, and a growing number of cor - on track to give a record amount to watergate, watergate shows you what porations are voluntarily revealing their super PACs, according to a march Wash - happens when there is secrecy,” says political activities. ( See sidebar, p. 420. ) ington Post analysis. As of Jan. 31, 680 freed, referring to the 1970s scandal Opponents of reporting require - companies had already contributed nearly in which a break-in at the Democratic ments argue that some anonymous $68 million to super PACs during the National Committee headquarters in spending is necessary to protect the current election cycle, The Post reported. washington, D.C., culminated, two years spenders from retaliation. Some oppo - Super PACS received $86 million through - later, in the resignation of Republican nents contend that disclosure propo - out the full 2012 cycle. 32 President Richard m. Nixon. nents focus on corporations — rather Lee Drutman, a senior fellow at New Secrecy also poses a national-security than unions and other groups — be - America, a centrist washington think risk, according to the University of min - cause their real goal is to drive busi - tank, agreed with Pinkham that “if you nesota’s Painter, a conservative advocate nesses completely out of politics. scour the names of super-PAC contrib - for finance reform. Lack of disclosure It is impossible to know how much utors, with only a few minor exceptions, means foreign companies could pour dark money is contributed. But often it you don’t see the big blue-chip cor - money into campaigns and “help choose is given to politically active organizations porations.” But with the growth of dark- our government,” he said. while foreign

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contributions are illegal, he argued that where the president attacks us and we the ban is “as easy to evade as underage Majority Opposes get threats from people in Congress, and drinking laws on college campuses.” 33 Citizens United Ruling this is pushed out and becomes part of Quoting unnamed white House offi - the culture — that we are evil, so we cials, The New York Times reported in Jan - Four in five American adults need to be destroyed, or killed — then uary that President Obama was seriously say the U.S. Supreme Court ’s why force people to disclose?” 37 considering issuing an executive order to 2010 ruling in Citizens United Political scientists Bertram Levine of require government contractors to report v. FEC — which allowed Rutgers and michael Johnston of Colgate their political spending. Public Citizen, the unlimited campaign spending University suggested requiring that all liberal activist group, told the newspaper by corporations, unions and donations be anonymous, so politicians that 70 of the 100 largest U.S. companies would not know who gave them other organizations — should would be covered under the order. 34 money. Under such a system, incum - According to a study released last be overturned. Fewer than a bents “could not ‘thank’ their benefac - month by maplight, a nonpartisan research fifth support the ruling. tors with policy ‘favors,’ nor could they organization that tracks money’s influence Percentages* of U.S. Adults extract contributions through intimida - on politics, during the last decade major who Say the Supreme Court’s tion,” Levine and Johnston wrote. government contractors have received 2010 Citizens United v. They proposed distributing contribu - $1,171 in federal money for every $1 in - FEC ruling . . . tions through the fEC, which would fine vested in lobbying and political action or jail contributors who revealed their committee contributions. 35 donations. 38 Yale Law School professors Opponents of total disclosure, such Ian Ayres and Bruce Ackerman made a as the U.S. Chamber of Commerce, similar proposal in their 2002 book, Voting note that almost all campaign-related with Dollars. But, Levine and Johnston spending already is reported — nearly wrote, “sadly, the Ackerman- Ayers system 97 percent during the 2014 election has not taken root.” cycle. The chamber, which reports its political spending but not its donors, Should public funds help finance spent $35.5 million during that cycle, congressional, state and local more than any other politically active campaigns? nonprofit, according to the Center for Was a good decision To counter the influence of big cam - Responsive Politics. 36 Should be overturned paign donors, some reformers want to “It doesn’t make any sense to report Not sure extend public financing — which is avail - all donors to organizations that spend * Do not total 100% due to rounding. able for presidential campaigns — to less than a majority of their budget congressional, state and local elections. Source: Greg Stohr, “Bloomberg Poll: for political expenditures,” the Center Under the presidential system, tax - Americans Want Supreme Court to for Competitive Politics’ Keating says. Turn Off Political Spending Spigot,” payers can direct $3 of their federal taxes “You would have donors exposed who Bloomberg Politics, Sept. 28, 2015, each year to help pay for presidential gave money with no intention or re - http://tinyurl.com/pn395v9 campaigns. In the primaries and caucuses, alization that their money would be the federal funds match candidates’ small used for political purposes.” Similarly, closure advocates “want to know who’s donations. The total amount available in he says, requiring only government giving money to whom. Then they can each primary or caucus depends on the contractors’ disclosures would make go and put pressure on those companies size of the state holding the election. In contracting appear politicized. to either stop [political] spending or put the general election, major party candidates Disclosure advocates’ real goal is to on restrictions.” receive equal amounts, and recipients make businesses afraid to participate in Charles Koch said disclosure would cannot raise additional funds. politics, say the chamber’s Rickard and endanger donors by inviting retaliation Recently, major candidates have others on the political right. “This is about against them. Already, he said, “we get turned down the public funding so separating corporations from their trade death threats, threats to blow up our fa - they could raise and spend substantially associations and their ability to make cilities, kill our people. we get [the cyber- more with private donations. Obama their case on issues,” says Justin Hakes, hacking group] Anonymous and other and Republican nominee mitt Romney senior communications director for the groups trying to crash our IT systems. together raised more than $2 billion chamber’s Institute for Legal Reform. Dis - So long as we’re in a society like that, from private donors in 2012, and this

416 CQ Researcher Guide to Campaign Finance Terms 501(c)(3) Charitable, educational, religious or scientific nonprofit group that can engage in limited lobbying but cannot participate in partisan political activity; not required to disclose donors 501(c)(4) Social-welfare group that must operate primarily to further the common good and general welfare of the community and spend more than half of its money for non-political purposes; not required to disclose donors 501(c)(5) Labor union or agricultural group that must operate primarily to serve members but may engage in lobbying and political activities; not required to disclose donors 501(c)(6) Business league, real estate or trade board or similar group that may engage in lobbying and political activities; not required to disclose donors 527 Group Advocacy group that raises money for political activities; political parties or political action committees (PACs) in this category must disclose donors and donations Citizens Supreme Court decision in 2010 that allowed corporations, unions and other groups to spend United v. FEC unlimited amounts to support or oppose candidates Dark money Money spent by political nonprofits from undisclosed donors Federal Election Six-member regulatory agency created by Congress to enforce campaign finance laws; Commission membership split along partisan lines PAC Political action committee — private entity that raises and donates limited amounts to candi- dates or parties; individuals can contribute up to $5,000 to PACs, while PACs can donate up to $5,000 to candidates and $15,000 to parties Super PAC PAC that can raise unlimited amounts from companies, nonprofits, unions or individuals and spend unlimited amounts on campaigns as long as it does not donate directly to candidates Soft money Money given to political parties rather than specific candidates; not subject to contribution limits Straw donor Campaign donor who illegally contributes to a campaign on behalf of another person Taxpayer Option allowing tax filers to donate $3 of their federal income tax to the public Presidential check-off Election Campaign Fund. Sources: Center for Responsive Politics; Bill Mears, “Where the money is: A campaign spending primer,” CNN, Jan. 23, 2012; United States of America v. Pierce O’Donnell; Federal Election Commission; Internal Revenue Service

year’s candidates may break that record. Elections Now proposal, which would New York City, for example, provides Opponents of public financing say give U.S. Senate candidates $6 in federal $6 in city funds for each of the first it’s not a legitimate use of tax revenues funds for every dollar they raise in small $175 given to a city candidate. 42 virginia and note that the presidential system contributions and would provide a 50 per - taxpayers can take a tax credit for the has collapsed. But reformers are making cent tax credit on the first $50 in annual first $25 given to state and local can - headway at the state and local levels. campaign donations . 40 didates. Oregonians get up to $50 in And Democratic presidential candidates Clinton would tap federal funds to credits for local, state and federal con - Clinton and Sanders support public fi - match small donations in presidential tributions and can take a tax deduction nancing for congressional elections, al - and congressional races. Bills also have for larger donations. Arkansas, Ohio though federal action is unlikely while been introduced to fund House races. and minnesota allow credits or deduc - Republicans control Congress. meanwhile, 13 states provide public tions for small contributions. 43 Con - “Our vision for American democracy funds for at least some statewide offices necticut candidates get state funding should be a nation in which all people, in exchange for recipients agreeing to if they receive a large number of small regardless of their income, can participate contribution and spending limits. 41 A donations. 44 Tallahassee, fla., provides in the political process, can run for office growing number of cities also are adopting some funds to city candidates. 45 without begging for contributions from public financing programs. Legislators maryland offers state funding in the the wealthy and the powerful,” Sanders have approved some of the reforms, while general election to gubernatorial can - said. 39 Sanders cosponsored the fair some were approved via referendums. didates who agree not to raise and

www.cqresearcher.com May 6, 2016 417 CAmPAIGN fINANCE

spend private funds. Republican Larry viding substantially more funding to ad - Hogan accepted the $2.6 million available dress candidates’ perceptions that they in 2014 and defeated Democrat Anthony must spend more than is offered under BACKGROUND Brown, who declined public funds and the current public financing system. Their quadrupled Hogan’s spending. 46 proposal would remove the current sys - Seattle voters last year approved giv - tem’s spending limits, provide six federal Curbing Political Money ing each registered voter $100 to donate dollars for each dollar raised in small to candidates in city elections. The donations, and raise the taxpayer checkoff mericans have worried about the ef - money can be given only to candidates from the current $3 to $20. A fects of money on politics and gov - who agree to abide by spending and Despite the reforms that have been ernment since the early years of the re - contribution limits and who participate enacted for state and local elections, public. while the partisan divide currently in at least three debates. 47 however, public financing faces strong has most Democrats supporting restrictions Yale’s Ackerman and Ayres, who opposition. and most Republicans opposed, those po - advocated anonymous political giving fifty-six percent of those surveyed sitions have not been consistent. 56 in 2002, now want to take the “Seattle in a November Associated Press poll In the 18th century, George wash - idea” national. They propose giving said they opposed the idea, and just ington and other candidates distributed every registered voter $50 in federal 25 percent said public financing of whiskey to get votes. 57 Andrew Jack - funds during presidential-election years campaigns is very effective or extremely son, in 1828, became the first presi - — and a smaller amount in other years effective. 51 meanwhile, fewer taxpayers dential candidate to spend a substantial — to be used as contributions to can - are contributing to the current presi - amount of money — $1 million — on didates who agree to spending limits. dential finance system: Only 6 percent an organized campaign. 58 The professors said this would balance of 2012 tax returns opted to allow Jackson launched — and his successors the impact of big contributors by gen - some of their taxes to fund the system, maintained — the “spoils system,” funding erating $6.5 billion, about the same as down from 27.5 percent in 1976. 52 their political activities by assessing gov - all candidates and independent groups Keating complains that public finance ernment employees’ paychecks. In the spent on the 2012 federal elections. 48 legislation sometimes comes with spending first campaign-finance regulation, Con - Ackerman says he and Ayres also caps and that it can be difficult to “ensure gress in 1867 banned such assessments encourage more state and local reforms, money isn’t stolen from the government.” on workers at washington’s Navy Yard. noting that Seattle-like proposals will In 2013, for instance, two campaign work - In 1876, Congress blocked such assess - be on ballots in South Dakota and ers for then-New York City Comptroller ments from any federal worker. The Civil washington state in November. John Liu, a Democrat, were convicted of Service System was created in 1883 to Represent.Us, a nonpartisan movement fabricating donors to draw more public insulate federal employees from politics. pushing for anti-corruption laws in cities funding into Liu’s campaign. 53 Politicians then sought other sources and states across the country, has pro - Others say public campaign financing of campaign funds, primarily business posed giving each registered voter a $100 diverts resources from more important interests. Just before the 1884 election, tax rebate to donate to federal candidates purposes. New York Republican Dean GOP presidential nominee James Blaine and political committees. Candidates Skelos, the state Senate majority leader, was observed attending a fundraising would be limited to accepting money said, “with our state’s limited resources, dinner at the posh Delmonico’s Steak - from three sources: tax rebates, individual does anyone really believe we should house in New York City with 200 of contributions up to $500 per election make it easier for politicians to run for the richest Americans. Some analysts and committees funded solely by tax re - re-election at the expense of funding said the subsequent public uproar over bates and $500 contributions. 49 our schools, fixing our roads and restor - the gathering contributed to Blaine’s Take Back Our Republic, a conserv - ing the governor’s cuts to programs that loss to Democrat Grover Cleveland. 59 ative group that advocates reform, suggests affect the developmentally disabled?” 54 In the late 19th and early 20th cen - allowing taxpayers to direct $100 of their The University of minnesota’s Painter turies, mark Hanna, a wealthy Ohio busi - taxes to candidates each year. 50 argued, however, that a “tax rebate for nessman, was a United States senator and Three Democratic members of Con - democracy,” such as the Take Back Our chairman of the Republican National Com - gress — Reps. Tom Rice of North Carolina Republic proposal, would send billions mittee. But he is best known as perhaps and Chris van Hollen of maryland, as of dollars in small donations to candidates the earliest big-time political fundraiser well as Sen. Tom Udall of New mexico “who would no longer depend on a who famously declared: “There are two — have introduced legislation to revitalize tiny sliver of the population for the things that are important in politics. The 55 the presidential funding system by pro - money they need to get elected.” Continued on p. 420

418 CQ Researcher Chronology

rate political action committees amounts to support or oppose can - 1876-1883 Cam - (PACs). didates if the organizations act inde - paign finance reform era begins. pendently of the candidates and 1974 their parties. . . . federal appeals 1876 watergate scandal leads Congress court rules organizations and indi - Congress prohibits soliciting political to impose stricter limits on politi - viduals can make unlimited contri - contributions from federal workers. cal contributions and spending butions to independent PACs. and to establish public financing 1883 of presidential campaigns. 2012 federal Civil Service Act ends “spoils Obama and GOP nominee mitt system,” which tied federal employ - • Romney turn down all public fund - ment to campaign contributions. ing in federal election cycle, which becomes most expensive in history. • 1976-Present Courts reshape campaign laws. 2014 Supreme Court strikes down limit 1896-1907 Busi - 1976 on how much an individual can nesses dominate campaign In Buckley v. Valeo , Supreme Court contribute in a federal campaign fundraising. strikes down limits on candidate cycle. and independent spending as a 1896 first Amendment violation. 2015 wealthy businessman mark Hanna Conservative multibillionaire indus - breaks fundraising records by col - 1978 trialists Charles and David Koch lecting millions of dollars for fellow Supreme Court overturns state reveal that they and wealthy asso - Ohio Republican william mcKinley, laws against corporate spending ciates plan to spend $750 million who wins presidential election. on state ballot issues. to promote libertarian and conser - vative positions during the 2016 1907 2000 election cycle. . . . Seattle voters Congress bans corporate contribu - Republican George w. Bush be - approve public financing of city tions to federal candidates. comes first major presidential can - campaigns, joining other state and didate to turn down public financ - local governments enacting reforms • ing in race for nomination. while Congress and the federal Election Commission are dead - 2002 locked. . . . Supreme Court up - 1911-1974 mcCain-feingold law restricts holds florida law prohibiting judi - Congress gradually reins in spending and requires disclosure cial candidates from soliciting campaign spending. on some broadcast ads. contributions.

1911 2008 2016 Congress orders disclosure of Supreme Court invalidates mcCain- All major presidential candidates contributions and spending in feingold law’s “millionaire’s refuse public campaign funds. . . . Congressional races. amendment,” which had eliminated Highest-spending Republicans trail contribution limits for candidates in delegate count behind wealthy 1943 running against opponents who businessman Donald Trump, who Congress outlaws union contribu - spend large amounts of their own runs a relatively inexpensive cam - tions to federal candidates. money. . . . Democrat Barack paign. . . . Spending on federal Obama refuses public financing. races runs ahead of record 2012 1972 pace. . . . february death of con - federal Election Campaign Act 2010 servative Supreme Court Associate upholds ban on direct contribu - In Citizens United v. FEC ruling, Justice Antonin Scalia means the tions by corporations and unions, Supreme Court says corporations next president could flip the court but allows them to set up sepa - and unions can spend unlimited toward supporting regulation.

www.cqresearcher.com May 6, 2016 419 CAmPAIGN fINANCE

more firms Lifting veil on Political Activities Advocacy group finds transparency on the rise.

s debates rage over whether corporations should be it disclosed in one place so shareholders and the public can required to disclose their political spending, a growing find it more easily. A number of companies have chosen to voluntarily tell Disclosure is increasing, says Bruce freed, the center’s the public about their political activities. president, because “companies recognize there is a premium The Center for Political Accountability, a washington-based placed on transparency. Companies do it with supply-chain advocacy group that pushes for corporate disclosure, in 2011 management, diversity [and] executive compensation. Political created a way to measure transparency in conjunction with exposure is part of that broad transparency spectrum.” the Carol and Lawrence Zicklin Center for Business Ethics Re - Peer pressure also plays a role, center Associate Director search at the University of Pennsylvania’s wharton School. Of marian Currinder says. “The index comes out and the CEO 83 companies rated on transparency since the Index of Corporate hears about it and becomes angry that they had no policy on Political Disclosure and Accountability first was published, the this,” she says. “They’re worried that it makes them look bad, average score increased to 71.3 out of 100 last year, from makes them look like they’re hiding something.” 42.5 in 2011. In addition, freed says, companies find it easier to respond to The index now covers all but three of the firms on the requests for political contributions if they’ve published a formal policy. Standard & Poor’s 500 stock market listing of major public com - “It creates uniformity and depersonalizes any decision they make.” panies. The average score of those 497 companies was 39.8. Political transparency is part of “a solid foundation of good The center’s index measures how well companies disclose in - corporate governance” that “significantly contributes to our com - dependent political expenditures and corporate contributions pany’s ability to compete effectively,” Prudential financial vice to candidates, parties, political committees and super PACs as President margaret foran said. 1 well as donations to trade associations and nonprofit organizations Disclosure by microsoft Corp., which received a nearly perfect that may not identify donors. score, is “rooted in our longstanding and very strong commitment Also covered by the index are activities of employee-funded to good corporate governance,” says Dan Bross, senior director political action committees and political spending of corporate of corporate citizenship. 2 funds. The index also reflects whether the companies publish microsoft contributes corporate funds to candidates when it their policies on when and where they spend political money. is legal and through its employee- and shareholder-financed Although much of this information must be reported to the political action committee. It also spends corporate money on federal Election Commission or state agencies, the center wants lobbying. microsoft does not contribute to so-called super PACs,

Continued from p. 418 provided an appropriation for the prop - important sources of money for Democrats first is money, and I can’t remember the er and legitimate expenses of each of during franklin D. Roosevelt’s presidency second.” Hanna helped raise millions of the great national parties.” 60 in the 1930s. But in 1943, Republicans dollars for each of fellow Ohioan william Congress did not agree. Instead, it and conservative Southern Democrats mcKinley’s two winning presidential passed the federal Corrupt Practices Act united to outlaw union contributions in campaigns in 1896 and 1900. of 1910, which mandated post-election federal elections. vice President Theodore Roosevelt, disclosure in House races of fundraising Unions responded by establishing who became president after mcKinley’s and spending by political party commit - the first political action committees, assassination in 1901, was embarrassed tees operating across state lines. The law using members’ donations to finance by corporate contributions to his 1904 was strengthened the next year to cover political activities that couldn’t be funded campaign and in 1905 proposed ban - Senate elections, require pre-election dis - from union treasuries. Later, in the 1960s, ning corporate cash from federal elec - closure by candidates as well as parties corporations and trade associations tions. Such legislation passed in 1907, and restrict contributions to $5,000 for began to establish their own PACs. promoted by what has been called the House and $10,000 for Senate candidates. first campaign-reform organization, the Legislation in 1925 required quarterly re - National Publicity Law Organization. ports every year from all organizations Dark Money Roosevelt also suggested that Con - that gave to elected officials. gress fund federal elections, arguing Labor unions — which, unlike cor - he Treasury Department set the that “the need for collecting large cam - porations, were not banned from political T stage for dark money in 1959 when paign funds would vanish if Congress spending in the 1907 law — became it defined nonprofit “social welfare” or -

420 CQ Researcher which can raise and spend unlimited amounts of money. It and spent little or no corporate cash on elections. Seventeen also avoids contributing “dark money” by reporting payments — including Hershey Co. and Sherman-williams Co. — made to trade associations that are spent for political purposes, when contributions only through their PACs. Nine — including Colgate- microsoft’s total payment to an association hits $25,000. Palmolive Co. and investment firm Goldman Sachs — did not “we wanted to make sure that our spending decisions were spend corporate funds and asked their trade associations not driven and guided by our policies, as opposed to giving money to use their payments for political purposes. 5 to an independent organization that may in some instances The center also works with shareholders who pressure cor - spend the money in a way that is not aligned with our views,” porations to disclose political activities, and it has negotiated Bross says of the decision not to give to super PACs. “we have disclosure agreements with more than 140 companies on the in some instances made it clear that some trade associations S&P 500. The organization encounters more resistance to disclosure do not speak for us on certain issues” and that those associations from trade associations than from companies, freed says. “shouldn’t be spending [microsoft] money on a particular issue.” “You can’t be against transparency in this day and age,” says Three companies scored 97.1 on the center’s index in 2015 Douglas Pinkham, president of the washington-based Public — real estate and railway giant CSX Corp., oil and gas driller Affairs Council, an international association of lobbyists and Noble Energy Inc., and Becton, Dickinson and Co., a medical- other public-affairs professionals “A lot is driven by employees devices manufacturer. Another 20 companies scored above 90, who want the company to be more open. A policy of openness including Intel Corp., monsanto Co., UPS Inc. and Prudential . 3 can build trust among employees and customers at a time when Despite rising average scores on the index, most companies most people are cynical about politics.” fall short of full disclosure. Just 28 percent fully disclose con - tributions to candidates, parties and political committees. And — Tom Price just 11 percent fully report donations to “social welfare” orga - nizations, which are not required to disclose their donors. A 1 “The 2015 CPA-Zicklin Index of Corporate Political Disclosure and Accountability,” majority of the companies publish a detailed explanation of Center for Political Accountability, http://tinyurl.com/h77yzfs. 2 See the microsoft Transparency Hub’s political page, http://tinyurl.com/jrqtvpx. their contribution policies, and another one-third publish ab - 3 4 “The 2015 CPA-Zicklin Index of Corporate Political Disclosure and Accountability,” breviated explanations. op. cit. The center found last year that 30 companies — including 4 Ibid. Kimberly-Clark and IBm — did not have political action committees 5 Ibid. ganizations, known as 501(c)(4) groups zations that track campaign spending. political fundraising, improper spending after the section of tax legislation that The Center for Responsive Politics iden - and other illegal attempts to influence the created them. Under a 1913 law, Congress tified 24 groups that broke the 50-percent 1972 election. The scandal took its name had exempted from taxes “civic leagues cap between 2008 and 2013. 61 from washington’s watergate building, or organizations not organized for profit In 1971 Congress adopted the federal where burglars employed by Nixon’s re- but operated exclusively for the promo - Election Campaign Act, which limited election committee were caught trying to tion of social welfare.” Such organizations spending and contributions and required tap phones and steal documents from the did not have to disclose their donors. more comprehensive and frequent reports Democratic National Committee’s office. The 1959 rule said 501(c)(4) organi - on spending and fundraising. The act The legislation established more- zations must work “primarily” (not ex - preserved the ban on business and union comprehensive contribution and spend - clusively) on social welfare. Later, “pri - campaign spending but allowed them ing limits, established public financing marily” came to be understood as more to use their funds to administer their po - of presidential campaigns and created than half, measured by the organization’s litical action committees. That helped to the fEC to administer the law. Taxpayers use of funds. kick off rapid PAC growth, from about could check a box on their federal tax Today, social-welfare groups often 1,000 PACs contributing $12.5 million in returns directing a portion of their taxes spend up to 50 percent of their funds 1974 to more than 4,000 PACs contributing to the presidential election fund. on politics. And many get away with $105 million in 1986 . 62 Public funding seemed to work well spending most of their money on political Congress took more aggressive action for about six elections, but George w. activities because of lax enforcement by in 1974 after the Nixon administration’s Bush in 2000 became the first major the IRS and fEC, according to organi - watergate scandal, which included secret candidate to reject the money in his

www.cqresearcher.com May 6, 2016 421 CAmPAIGN fINANCE

Pet Causes Spur wealthy to Open Their wallets From Israel to climate change, policy issues drive political giving. he multibillionaires drawing so much flak for their political politics. Tom Steyer, who made more than $1 billion as a hedge- spending this year are sometimes motivated by issues, fund owner and manager, has spent $13 million in this election T sometimes by self-interest and sometimes by a happy cycle pushing for action against climate change. 7 marriage of the two. That puts him second in the ranks of donors in this campaign witness Sheldon Adelson and his wife, miriam: They judge cycle, trailing only Robert mercer, a hedge-fund manager and candidates primarily by their support of Israel, although a secondary computer scientist who has given $16.7 million to conservatives, issue is opposition to Internet gambling, which could cut into according to the Center for Responsive Politics, which tracks the profits of his casinos. 1 Each April, GOP politicians gather campaign spending. Investor George Soros ranks tenth, with at the annual Republican Jewish Coalition conference held at $8 million spent, mostly in support of Democratic presidential Adelson’s venetian casino and hotel in Las vegas — a ritual that candidate Hillary Clinton. James and marilyn Simons, whose fortune has become known as the “Adelson Primary.” also comes from hedge funds, rank seventh, having contributed “Israel is at the core of everything he does,” said fred more than $9 million, almost all to Clinton and liberal causes. 8 Zeidman, a friend of Adelson and the former chairman of the Steyer says his commitment to the environment — especially U.S. Holocaust memorial museum in washington. Adelson grew fighting climate change — grew in part from a sense of guilt up poor in Boston and made large donations to Democrats about fossil-fuel investments made by farallon Capital manage - until 1996, when he sensed the Democrats “becoming less pas - ment, the San francisco-based hedge fund he founded in 1986. sionate about Israel,” said michael Leven, former president of “I left the firm and committed myself to addressing global the Adelson-owned Las vegas Sands Corp. climate change because — based on the scientific evidence — The Adelsons have kept their powder dry so far in this cam - I could not reconcile my personal values with managing a fund paign season, but they gave almost $93 million to conservative that by mandate is invested in all sectors of the global economy, organizations during the 2012 election cycle — more than three including fossil fuels,” he said. “But the more I learned about times greater than the second-largest donor. 2 Adelson has said the energy and climate problems we currently face, the more that he could back Donald Trump if the developer wins the I realized I had to change my life. . . . I believe it is truly the GOP nomination. 3 But, as the presidential campaign was just most pressing issue we face.” 9 gearing up two years ago, Adelson confidantes said he was Steyer sold his ownership share of farallon in late 2012 and looking for a mainstream winner. “He doesn’t want a crazy ex - finished withdrawing his investments there in 2014. tremist to be the nominee,” the late victor Chaltiel, an Adelson In 2010, he gave $5 million to help defeat a ballot measure friend who sat on the Sands board, said in 2014. 4 that would have weakened California’s motor-vehicle emissions Adelson — whose wealth has been estimated by Forbes standards. He then put $30 million into a successful ballot magazine at $32 billion — owns two maybach limousines, initiative that raised corporate taxes and increased spending on which can cost more than a half million dollars each, and two clean-energy projects. 10 He created NextGen Climate, his super Boeing 747 jumbo jets. 5 He also makes substantial contributions PAC, in 2013. 11 He spent more than $70 million — mostly to Jewish and Israeli charities. 6 through NextGen — on congressional races, making him the most megadonors support Republican candidates and con - biggest spender in the 2014 election cycle. 12 He and his wife, servative causes. But wealthy liberals also invest millions in Kat Taylor, also founded Beneficial State Bank in Oakland in race for the GOP nomination. Because commissioner francis valeo. During oral accepting public funds limited total Dismantling Restrictions arguments, Justice Potter Stewart famously spending, Bush concluded that he could declared that “money is speech, and raise more than the government would he courts have dealt deep blows speech is money.” 64 give him. T to the reformers’ accomplishments. The decision began a series of court- In 2004, Democrats John Kerry and In Buckley v. Valeo , the Supreme Court ordered dismantlings of campaign restric - Howard Dean joined Bush in that de - in 1976 struck down limits on candidate tions, which continued into 2014. In 1978, cision. four years later, Barack Obama and independent spending as an in - for instance, the Supreme Court struck rejected public financing in both the fringement on free speech. The challenge down state laws against corporate spend - nominating contest and the general elec - to the law was initiated by James Buckley, ing on state ballot issues. In 1986, in tion. In 2012, both Obama and GOP a Conservative Party senator from New FEC v. Massachusetts Citizens for Life , the nominee mitt Romney turned down all York and brother of conservative writer court ruled that nonprofit corporations public funding, as have the leading can - william f. Buckley Jr. The first-named can donate to candidates as long as the didates in the 2016 cycle . 63 defendant was Senate secretary and fEC corporations do not receive contributions

422 CQ Researcher n a r z A

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2007, which loans money to people and small businesses who / s

otherwise couldn’t get them. 13 e g a

Some Republicans have called Steyer a hypocrite for railing m I

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against fossil fuels after building part of his fortune on them. t t But Bill mcKibben, a founder of the environmental advocacy e G group 350.org, said: “This is precisely what we want people to Casino operator Sheldon Adelson and his wife Miriam do: sell investments in fossil fuels and get to work solving the donate to candidates based on their support for Israel. problem of climate change.” 14 The couple gave nearly $93 million to conservative The Ricketts family, which owns the Chicago Cubs baseball organizations during the 2012 election cycle, team, supports Republicans, with one notable exception. Patriarch more than triple the second-largest donor. Joe Ricketts, founder of the discount brokerage TD Ameritrade, 4 matea Gold and Philip Rucker, “Billionaire mogul Sheldon Adelson looks and his wife, marlene, rank No. 11 on the list of largest donors, for mainstream Republican who can win in 2016,” The Washington Post , march 25, 2014, http://tinyurl.com/koboxqj. having given $7.5 million to conservative groups so far this 5 15 Ball, op. cit. ; Howard Stutz, “Adelson slips one spot on the forbes list,” cycle. He is a former Democrat whose biggest concerns are Las Vegas Review-Journal , Sept. 29, 2014, http://tinyurl.com/h4enb4k. Also curbing government spending and reducing the national debt. see “In Pictures. . .,” op. cit. The couple gave $5 million last year to Unintimidated, the 6 marc fisher, “Sheldon Adelson: Casino magnate, mega-donor is a man of super PAC backing wisconsin Gov. Scott walker for the GOP many motives,” The Washington Post , Oct. 23, 2012, http://tinyurl.com/923xxep. 7 “2016 Top Donors to Outside Spending Groups,” Center for Responsive presidential nomination, but got much of it back when walker Politics, http://tinyurl.com/3ufhfoa. 16 dropped out of the race in the fall. 8 Ibid. One of their sons, Todd, was walker’s fundraising co-chair 9 Tom Steyer, “How Climate Change Changed me,” Politico , July 14, 2014, and runs the family’s super PAC, Ending Spending, which http://tinyurl.com/zx2bzok. 10 promotes cuts in government expenditures. Another son, Pete, fredreka Schouten, “A Billionaire’s Green mission,” USA Today , Oct. 14, 2014, http://tinyurl.com/jlf88z4. won a self-funded campaign for governor of Nebraska in 2014, 11 “Tom Steyer founder,” NextGen Climate, http://tinyurl.com/j2nahou. running as a Republican. But their daughter, Laura, is a gay- 12 Richard valdmanis, “This Billionaire Environmental Activist Hasn’t Picked rights activist who donates to Democratic candidates and or - A Democrat To Back Yet Steyer is one of the party’s biggest donors,” The ganizations and raised hundreds of thousands of dollars for Huffington Post , Jan. 20, 2016, http://tinyurl.com/h9psrxb 13 President Obama’s 2012 reelection campaign. 17 “Tom Steyer founder,” NextGen Climate, http://tinyurl.com/j2nahou. 14 michael Barbaro and Coral Davenport, “Aims of Donor Are Shadowed — Tom Price by Past in Coal,” The New York Times , July 4, 2014, http://tinyurl.com/ngwon7l. 15 “2016 Top Donors to Outside Spending Groups,” op. cit. ; “Ricketts, John Joe: Donor Detail,” Center for Responsive Politics, http://tinyurl.com/hqsmxu2. 1 molly Ball, “The Sheldon Adelson Suck-Up fest,” The Atlantic , April 2, 16 2014, http://tinyurl.com/hq9az3a; “In Pictures: Outrageous Executive Perks: Robert Costa, “Ricketts family gives more than $5 million to walker super PAC,” , July 30, 2015, http://tinyurl.com/hmx5we3; Jennifer Sheldon Adelson,” Forbes , may 5, 2010, http://tinyurl.com/zqjcxzw. The Washington Post Reingold, “Ricketts: The new billionaire political activist,” , Sept. 21, 2 Fortune “2012 Top Donors to Outside Spending Groups,” Center for Responsive 2012, http://tinyurl.com/hj8z78g; Clare O’Connor, “meet the Billionaire Ricketts Politics, http://tinyurl.com/zup9qqn. family: Dad Plans Anti-Obama Attack while Gay Daughter fundraises for Prez,” 3 Jonathan mahler, “Trump Courting Jewish voters wary of His Agenda and Forbes , may 17, 2012, http://tinyurl.com/goghkt3. Bluster,” The New York Times , march 21, 2016, http://tinyurl.com/j5rxy2n. 17 Ibid. from for-profit corporations or unions. 65 of millions of soft money dollars on their own money to run ads near elections Reformers turned to Congress again ads that often urged voters to contact as long as those ads were not the “func - in 2002 with the mcCain-feingold Act, a candidate to praise or criticize votes tional equivalent” of advocacy for a can - named for its chief Senate sponsors, on the issues, which critics said was didate. Once again, organizations bought Arizona Republican John mcCain and thinly disguised support or opposition. ads that implied candidate support or wisconsin Democrat Russ feingold. The The law restricted and required dis - opposition without explicitly saying so. bill outlawed so-called “soft money” — closure of spending on broadcast ads that The next year, the high court over - contributions to political parties above mention a candidate near an election. It turned the “millionaire’s amendment,” a federal limits but allowed because they also required candidates to appear in ads provision in the mcCain-feingold law de - did not directly support a candidate. to say they approved the message and signed to level the playing field for can - The money was supposed to be used indexed contribution limits to inflation. didates running against wealthy opponents for “party-building” activities, such as In 2007 the Supreme Court said in who self-funded expensive campaigns. voter registration and get-out-the-vote the Wisconsin Right to Life v. FEC case The court earlier had allowed limits on drives. Both parties had spent hundreds that corporations and unions could use campaign contributions to stand but said

www.cqresearcher.com May 6, 2016 423 CAmPAIGN fINANCE candidates could spend unlimited amounts of an Alabama electrical engineering of their own money on their campaigns. company, challenged the $123,000 limit The millionaire’s amendment lifted con - in 2013. fewer than 650 people hit CURRENT tribution restrictions for candidates op - that ceiling during the 2012 cycle. posing someone who spent more than As a result of the court ruling, a SITUATION $350,000 of his own money in a House wealthy donor now can spend up to race and a varying amount for Senate $1.3 million on federal elections every races. The court said lifting the cap for two years by giving a maximum of Super PACs opponents of wealthy candidates “imper - $2,600 in each congressional race plus missibly burdens” the right of a wealthy $32,400 to a political party. 66 The 2012 lush with cash, super PACs are taking candidate to spend more money. federal elections — the first with a pres - f on tasks traditionally done by can - Then in 2010 the Supreme Court — idential campaign after the Citizens’ Unit - didates’ campaign organizations. It’s part in one of its most controversial rulings ed decision — were the most expensive of an effort to work as closely as possible — overturned restrictions on corporate in history, with more than $6 billion with the candidates without violating and union political spending. In Citizens spent by all players, including more than the ban on coordinating activities. It United v. FEC , the court said business $300 million in dark money. Some predict also is a response to the high cost of corporations, unions and some other that overall spending in the current cycle Tv advertising and the realization that incorporated organizations could spend could reach as much as $10 billion. 67 the tens of millions of super PAC dollars unlimited amounts of money to support The power of money also was spent on Jeb Bush’s ads did not prevent or oppose candidates, as long as the demonstrated at the state level in Illinois, his campaign’s collapse. organizations acted independently of where an executive described as the The super PAC Keep the Promise I the candidates and their parties. state’s richest man organized support had people on the ground working for writing for the five-justice majority, for a Republican multimillionaire who former Republican presidential candidate Justice Anthony Kennedy said “govern - captured the governor’s mansion while Ted Cruz, a Texas senator, in key primary ment may not suppress political speech Democrats won control of the legislature states, for example. And Correct the on the basis of the speaker’s corporate and voters backed ballot issues supported Record, a super PAC supporting Clinton, identity.” But Justice John Paul Stevens, by liberal interest groups. Kenneth Griffin, has been working directly with her cam - writing for the dissenting justices, pre - a billionaire hedge-fund founder, recruit - paign to produce Internet communica - dicted the ruling would result in “cor - ed other wealthy individuals to finance tions after the fEC ruled that free online porate domination” of campaigns. the campaign of Bruce Rauner, who re - content is exempt from regulation. 71 Kennedy argued that high corporate portedly is worth more than $500 million. Super PACs and other political orga - spending would not corrupt elections, Griffin donated $5.5 million to Rauner’s nizations also are perfecting methods of because disclosure requirements and campaign and lent Rauner his private hiding the sources of some of their funds. the Internet would enable citizens to plane for use in the campaign. 68 Limited liability corporations — LLCs — know what the organizations were Rauner also spent millions of his have joined nonprofit “social welfare” spending and who was benefitting. But own money. His spending triggered Illi - groups as vehicles for channeling dark subsequent court rulings and regulatory nois’ version of the millionaire’s amend - money. LLCs often are incorporated with - action — or inaction — have enabled ment, which differed in a key provision out disclosing the sources of their income. much spending to occur in secret. from the federal provision struck down Some appear to have been established Later that year, in SpeechNow v. FEC , by the Supreme Court. while the federal solely to help a candidate. the U.S. Court of Appeals for the District law had raised contribution limits for Decor Services LLC, for example, was of Columbia ruled that organizations candidates running against high-spending incorporated in Delaware in January. and individuals can donate unlimited opponents, the Illinois law removed all Two weeks later it gave $250,000 to a amounts to PACs that spend indepen - contribution restrictions. Ironically, that super PAC supporting New Jersey Re - dently of candidates and parties. meant that Rauner’s wealthy supporters publican Gov. Chris Christie, who has In the 2014 McCutcheon v. FEC case, could donate millions more to his cam - since dropped out of the presidential the high court welcomed more high paign . 69 race. In february, it made an identical campaign spending by striking down The Supreme Court did let one cam - donation to a super PAC backing former the limit on how much an individual paign finance restriction stand last year GOP candidate Rubio. Children of Israel could contribute to all federal candidates — a florida law forbidding judicial LLC, which listed “donations” as its type and organizations in a campaign cycle. candidates from personally soliciting of business when it incorporated last Shaun mcCutcheon, the wealthy CEO contributions . 70 Continued on p. 426

424 CQ Researcher At Issue:

Doeyes s big money in politics subvert democracy?

RICHARD HASEN DAVID KEATING PROFESSOR OF LAW AND POLITICAL SCIENCE , PRESIDENT , C ENTER FOR COMPETITIVE UNIVERSITY OF CALIFORNIA , I RVINE ; AUTHOR POLITICS OF PLUTOCRATS UNITED : C AMPAIGN MONEY , THE SUPREME COURT , AND THE WRITTEN FOR CQ RESEARCHER , MAY 2016 DISTORTION OF AMERICAN ELECTIONS

WRITTEN FOR CQ RESEARCHER , MAY 2016 n 1968, a few wealthy liberals backed Eugene mcCarthy’s presidential campaign against fellow Democrat Lyndon he new era of big money in politics is very troubling — Johnson. Back then, supporters could donate any amount, but not for the reasons that many reformers think. In re - i so a handful gave today’s equivalent of millions of dollars. Did cent years, it has become ever easier for wealthy indi - t this “subvert” democracy? Of course not; it enhanced it. viduals and entities to spend money on elections. much of this mcCarthy, a U.S. senator from minnesota, drove Johnson happened because of the Supreme Court’s 2010 decision in from the race, and in doing so changed the politics of the Citizens United v. Federal Election Commission , which allowed vietnam war. Today, while contributions to candidates are corporations to spend unlimited sums independent of candi - capped at $2,700 per election, all Americans can pool their dates on election ads. After this case and other developments funds through independent super PACs without limit and came super PACs, groups that collect unlimited contributions speak to other Americans. Such speech is vital. As mcCarthy from others to engage in this kind of spending. we also have observed, “There is clear historical evidence that large contrib - seen other groups doing the same thing, but allowing contrib - utors have been highly important in supporting controversial utors to remain anonymous. and maverick political movements.” The amounts the wealthy are spending are staggering. No amount of spending will win an election if voters don’t Casino magnate Sheldon Adelson and his wife contributed like a candidate or his ideas. Just ask Jeb Bush. between $98 million and $150 million in the 2012 elections, Individuals who give significant sums to political groups do and environmentalist Tom Steyer contributed about $74 million so because they believe in the causes or candidates those in the 2014 elections. The Koch brothers’ network of about groups support. Ample academic research demonstrates that 400 people has pledged to spend just under $900 million — donors give to candidates who share their beliefs — not the later reduced to $750 million — to influence public policy yes other way around. Tom Steyer supo ports candidates who already and voters in the 2016 elections. And this is just the money favor action on climate change, and Sheldon Adelson supports we know about. candidates who already support Israel. The problem with this big money is not bribery. Nor is it Campaign spending has other benefits as well. Higher spend - elections going to the biggest spender. failed Republican pres - ing leads to better-informed voters and higher turnout. Limiting idential candidate Jeb Bush is just the latest illustration of the spending prevents candidates from performing many of the principle that even with a lot of spending, the public won’t basic tasks of campaigning and reduces independent voices to get behind a candidate that it does not otherwise support. a whisper. Both outcomes afford incumbents a huge advantage. Instead, the key problem is that those who contribute and Restricting campaign spending also gives a further advantage spend big money in elections have much greater influence over to media companies, which are currently exempt from speech who is elected and what policies are pursued than everyone else. regulations. It also helps those with household names such as Bush got multiple chances to make his case for election and to Republican Donald Trump, who has received nearly $2 billion be taken seriously, not because many voters backed him but be - in “free” media, according to a recent analysis. cause a handful of extremely wealthy people supported him. Even if limiting campaign spending and speech was a good Big money not only makes it more likely that a candidate idea in theory, the rules would be enforced by government will be taken seriously; it also gives contributors access to officials, the last persons who should have such power. make a case. Studies show that the wealthy are much more Consider these thoughts from former Supreme Court Justice likely to see their preferences enacted into law than everyone Louis D. Brandeis: “Those who won our independence be - else. And the views of the super-wealthy tend to be different lieved . . . that freedom to think as you will and to speak as than those of the rest of us. you think are means indispensable to the discovery and In the end, the fundamental problem with the wealthy in - spread of political truth; that without free speech and assembly fluencing our elections is that we allow those with great eco - discussion would be futile; that with them, discussion affords nomic power to translate it into political power. That is anti- ordinarily adequate protection against the dissemination of democno ratic. noxious doctrine.”

www.cqresearcher.com May 6, 2016 425 CAmPAIGN fINANCE

Continued from p. 424 political committees to report. most states mittees, doubling the contribution limit year in California, gave $400,000 to super also mandate disclosure of independent for individuals and allowing candidates PACs supporting Cruz and former GOP expenditures by individuals, corporations to coordinate with advocacy groups . 79 Arkansas governor mike Huckabee, both and other organizations, depending on In Arizona, the Republican-led Legislature of whom have since dropped out. 72 the amount of the spending. 75 In Alaska, eased campaign regulations in march by: LLCs have become more active in this California, Colorado, montana and North • Removing reporting requirements campaign “with no disclosure of the human Carolina, independent groups must iden - and limits on what individuals can or humans behind these contributions,” tify their top sources of income when spend raising funds for a candidate, according to Paul S. Ryan, deputy executive they buy political ads. 76 • Lifting disclosure requirements for director of the Campaign Legal Center, a maryland state Sen. Jamie Raskin, who social welfare groups, even if the IRS nonprofit organization that focuses on pro - recently won the Democratic nomination has not yet acted on their registration, tecting the right to vote and restricting to run for the U.S. House, has introduced • Allowing candidates to transfer cam - money’s influence in politics. 73 a bill to make maryland-registered cor - paign funds to other campaigns, and Investigation of LLCs has been porations obtain shareholder approval • Allowing groups to spend unlimited, blocked by partisan gridlock at the for political spending — a provision he undisclosed amounts, including corporate federal Election Commission, he said. acknowledges is aimed at banning cor - funds, to try to influence legislation . 80 Established in 1974 to administer elec - porate spending. “The majority of shares Keating says his organization opposes tion law, the six-member commission of Fortune 500 firms are owned by in - regulations because “we think the first cannot have more than three members stitutional investors, such as retirement Amendment means what it says: Congress of the same political party. In recent and pension funds, mutual funds, in - shall make no law abridging the freedom years, commissioners have consistently surance companies, universities, foun - of speech,” an argument that California divided along party lines and been dations, charities and other nonprofits,” law professor Hasen called “simply an in - unable to act on major issues. and they are not allowed to engage in correct reading of first Amendment doctrine for instance, the fEC recently deadlocked partisan political activity, said Raskin, an and practice.” The Constitution does not over whether to investigate w Spann LLC, American University law professor. 77 require “literally no regulation ever of speech, which gave $1 million to Restore Our Take Back Our Republic, the con - expression, or the spending of money on future, a super PAC supporting Romney, servative reform group, would raise the speech [or] expression,” he said. 81 during the four months that Spann existed federal reporting threshold in order to in 2011. A Romney business associate ac - encourage more small contributions. The knowledged establishing the corporation current limit could discourage political Congress Stalls to make the contribution, an action Ryan contributions out of fear that “a person’s said seems to violate a law against giving contributions may become public,” the n what amounts to a symbolic gesture, in another person’s name. 74 organization said. “Just as voting is secret, I given GOP control of Congress, more “Unless the fEC is reconstituted with so small contributions should be secret than 100 Democrats in the House have commissioners willing to do their job,” to avoid the potential of retaliation by co-sponsored legislation to increase public Ryan said, anonymous donors “will employers, unions, or others .” 78 disclosure of political spending by cor - continue to get away with laundering meanwhile, Keating, of the Center porations, unions and other organizations. their money into federal elections.” for Competitive Politics, wants to “get Such entities would be required to report rid of as much [campaign regulation] political spending to shareholders, mem - as possible.” He would eliminate con - bers or donors and require that political State and Local Actions tribution limits and raise the federal advertisements identify the organizations reporting threshold for individual con - purchasing those ads and the large donors everal states and cities have adopted tributions to at least $1,000. “The in - who helped pay for them. 82 S reforms for state and local elections, dividual threshold has been $200 since Democrats Clinton and Sanders sup - even as other states have loosened 1979,” he says, “and that’s too low.” port amending the Constitution to in - regulations on political spending. Some states are loosening campaign validate Supreme Court decisions that All states require candidates to report spending limits. In December, wiscon - have eviscerated campaign finance laws. contributions and expenditures, but the sin’s Republican governor and GOP- most proposed amendments would deny regulations for group and individual con - controlled Legislature rolled back cam - first Amendment protections to corpo - tributors vary. for example, 14 states paign spending regulations by allowing rations, but some go even further. require large contributions to be disclosed corporations to contribute to political Democratic Rep. Richard Nolan of min - within 24 hours. Almost all states require parties and legislative campaign com - nesota has introduced a constitutional

426 CQ Researcher amendment that would restrict free-speech favor, and Citizens United could be one at a president’s discretion could make protections to “natural persons only,” al - of the first cases on the chopping block.” one appointment. Or, Hasen says, the lowing corporate speech to be regulated. Lee Epstein, a professor of law and commission could be converted into an It also would direct federal, state and local political science at washington Univer - administration, led by a single administrator governments to regulate campaign spend - sity in St. Louis, agrees. Epstein listed who would implement the law. ing so that “no person gains, as a result several Supreme Court decisions that Because of the failures of big-spending of that person’s money, substantially more would be overturned with a new liberal presidential candidates this year, the access or ability to influence” elections. justice, particularly those dealing with Public Affairs Council’s Pinkham says, And it would require disclosure of con - race, gun control and campaign finance. “we’re realizing [elections are] not all tributions and expenditures and block “Some would go quickly, like Citizens about money.” That view could make courts from interpreting campaign spending United , and some would go slower. Americans less likely to think reform is as constitutionally protected speech . 83 But they’ll go,” Epstein said. 86 necessary, he says. It also could “make Hasen, the author of Plutocrats United , Those projections demonstrate the im - it less likely that big companies will says amending the Constitution is “the portance of this year’s presidential election support super PACs in the future.” wrong way to go” because it would re - to the future of campaign finance. Hasen questions whether Trump’s quire approval by two-thirds of each Reformers had assumed they would candidacy will have much influence congressional chamber and ratification have to focus on state and local campaigns, on future campaigns because he’s by three-fourths of the state legislatures. and they still may. Even if Democrats unique. But Pinkham and Pudner say GOP presidential candidate Trump hold the white House and retake the they expect candidates to follow his says the campaign finance system is Senate, Republicans remain heavily favored emphasis on attracting free news cov - corrupt and brags that as a businessman to maintain control of the House, which erage rather than purchasing advertis - he used political contributions to buy would keep reforms stalled in Congress. ing, especially as people become less influence with government officials. He “when the time comes to place inclined to watch Tv commercials. supports disclosure of political dona - ideas before a new progressive Supreme “They’re all taking notes,” Pudner tions and criticized the Supreme Court’s Court, we have to begin with legislative says of campaign consultants. “They are Citizens United decision allowing cor - proposals on the state and local levels,” always looking at what’s working.” porations, unions and other incorpo - Hasen says. Such proposals, he adds, rated organizations to make unlimited need to be in states that allow ballot Notes independent political expenditures. 84 initiatives in order “to get around leg - Cruz says limiting campaign contri - islatures that might be reluctant to mess 1 “The truth behind fake political ads,” CBS butions is an attack on freedom . 85 with the rules” that got them elected. News, Jan. 31, 2016, http://tinyurl.com/hev8l6s . As Represent.Us Director Silver says: Also see matea Gold, “Koch-backed political net - “we’re not trying to pass national legis - work, built to shield donors, raised $400 million lation, because washington, D.C., is where in 2012 elections,” The Washington Post , Jan. 5, 2014, http://tinyurl.com/pl65soc . Also see matea good ideas go to die. we won’t bring OUTLOOK Gold, “Charles Koch downgrades his political them to washington until we have critical network’s projected 2016 spending from $889 mass across the country.” million to $750 million,” The Washington Post , Supreme Court Is Key The status of the deadlocked fEC Oct. 21, 2015, http://tinyurl.com/jbvp4cn . is another crucial factor. Silver, Hasen 2 “Super PACs,” Center for Responsive Politics, n an interview before Justice Scalia’s and John Pudner, executive director accessed April 29, 2016, http://tinyurl.com/ I death in february, California law pro - of Take Back Our Republic, say the gwazfke . fessor Hasen said the Supreme Court fEC can’t be effective with six com - 3 matea Gold and Anu Narayanswamy, “The would have to change before campaign missioners — three from each party new Gilded Age: Close to half of all super- finance reform could occur at the federal — who divide along party lines. PAC money comes from 50 donors,” The level. “It would be foolish to push spending “we’ve got to figure out a way to Washington Post , April 15, 2016, http://tinyurl. com/hugosjn . limits now, because the courts would strike have someone nonpartisan appointed 4 “Super PACs,” Center for Responsive Politics, them down as unconstitutional,” he said. to break ties,” Pudner says. march 21, 2016, http://tinyurl.com/jppx5jw . Now, with the possibility that a Silver suggests an odd number of com - 5 Gold and Narayanswamy, op. cit. Democratic president could appoint a missioners and “a different way to appoint 6 matea Gold, “Joe Biden and Elizabeth warren li beral as Scalia’s replacement, Hasen commissioners so it’s less political.” Per - set to address gathering of wealthy liberal says, “the court definitely could swing haps, he says, a judge or nonpartisan donors,” The Washington Post , Nov. 12, 2014, from 5-4 against regulation to 5-4 in government official who does not serve http://tinyurl.com/gudpr59 .

www.cqresearcher.com May 6, 2016 427 CAmPAIGN fINANCE

7 “Donald R. Trump: Candidate Summary, 2016 Could Shake Up Campaign finance,” Politico , 30 “Conservative Super PAC’s Ads Take Aim Cycle,” Center for Responsive Politics, http://tiny feb. 14, 2016, http://tinyurl.com/hqxhrhd . At Hillary Clinton,” NPR, feb. 26, 2016, http://tiny url.com/hs8wjcp . Also see “Bernie Sanders 18 Adam Smith, “The Top money-in-Politics url.com/hdbrptr . (D): Candidate Summary, 2016 Cycle,” Center Stories of 2015,” Every Voice , Dec. 30, 2015, 31 “Are Lessons from the 2014 Election forgotten for Responsive Politics, http://tinyurl.com/zkeguy2 . http://tinyurl.com/zalxb9o . as the 2016 Campaigns Begin?” op. cit. 8 Jayne O’Donnell, “more than 900 ‘Democracy 19 “Disclosure levels,” Take Back Our Republic, 32 matea Gold and Anu Narayanswamy, “How Spring’ protesters arrested in D.C. — so far,” http://tinyurl.com/jkqecgz . ‘ghost corporations’ are funding the 2016 elec - USA Today , April 18, 2016, http://tinyurl.com/ 20 Ibid. tion,” The Washington Post , march 18, 2016, hlwpag4 . 21 Richard Hasen, Plutocrats United: Campaign http://tinyurl.com/h576g55 . 9 Kenneth Jost, “Campaign finance Debates,” Money, the Supreme Court, and the Distortion 33 Richard w. Painter, “The Conservative Case CQ Researcher , may 28, 2010, pp. 457-480; of American Elections (2016). Also see Greg for Campaign-finance Reform,” The New York “mcCutcheon, et al. v. fEC Case Summary,” Sargent, “How to rid politics of its pollution Times , feb. 3, 2016, http://tinyurl.com/zpdt3p4 . federal Election Commission, http://tinyurl. by wealthy donors?” The Washington Post , 34 Julie Hirschfeld Davis, “President Obama com/pyjcc2h . Jan. 8, 2016, http://tinyurl.com/zm4apmo . may Require federal Contractors to List Cam - 10 Nicholas Confessore, Sarah Cohen and Karen 22 Glen martin, “will High Court be Swayed paign Gifts,” The New York Times , Jan. 19, 2016 , Yourish, “Just 158 families have provided nearly by Research findings? Not Likely, Says Legal http://tinyurl.com/h9jcjoh . half of the early money for efforts to capture Scholar,” California , march 27, 2014, http://tiny 35 “for Top federal Contractors, Investments the white House,” The New York Times , Oct. 10, url.com/jrcv6ux . in Lobbying, PACs Yield Big Returns,” press 2015, http://tinyurl.com/pmhwvjn . 23 “Lindsey Graham Says we Need an Amend - release, maplight, April 28, 2016, http://tinyurl. 11 “The Growing Shadow of Political money,” ment to fix money in Politics,” Across the Aisle , com/z9bhyv6 . The New York Times , Jan. 24, 2015, http://tiny Aug. 27, 2015, http://tinyurl.com/jk43kqy . 36 “Political Nonprofits: Top Election Spenders,” url.com/jyvdhko . 24 Ibid. Center for Responsive Politics, http://tinyurl. 12 “Donald Trump: Candidate Summary, 2016 25 “Are Lessons from the 2014 Election for - com/hhkzwf6 . Cycle,” op. cit. gotten as the 2016 Campaigns Begin?” Center 37 Gold, op. cit. 13 Celeste Katz, “mayor Bloomberg spent for Responsive Politics, summer 2015, http:// 38 Bertram J. Levine and michael Johnston, $102m on campaign to win third term — or tinyurl.com/jdahcbb . “making campaign contributions anonymous,” $175 per vote,” New York Daily News , Nov. 27 , 26 Robert E. Hogan, “Campaign Spending and The Washington Post , Sept. 4, 2014, http://tiny 2009, http://tinyurl.com/zet52oy . voter Participation in State Legislative Elections,” url.com/hoa57o6 . 14 “2016 Presidential Race,” Center for Re - Social Science Quarterly , September 2013, 39 Bernie Sanders, “Getting Big money Out of sponsive Politics, accessed on march 7, 2016, http://tinyurl.com/hh8onv5 . Politics and Restoring Democracy,” Bernie Sanders http://tinyurl.com/j38o8o7 . 27 Philip Bump, “How the Internet has democ - campaign website, http://tinyurl.com/jd3zjlw. 15 “Americans’ views on money in Politics,” ratized democracy, to Bernie Sanders’s benefit,” 40 “S.1538 — fair Elections Now Act,” http://tiny The New York Times , June 5, 2015, http://tinyurl. The Washington Post , feb. 18, 2016, http://tiny url.com/hxoaehb . Also see http://tinyurl.com/ com/nh4g83n . url.com/jjnrvjj . j4b3fw9 . 16 “Americans want Supreme Court to Turn Off 28 Nicholas Confessore and Karen Yourish, 41 “Overview of State Laws on Public financ - Political Spigot,” Bloomberg Politics , Sept. 28, “measuring Donald Trump’s mammoth Ad - ing,” National Conference of State Legislatures, 2015, http://tinyurl.com/pn395v9 ; David Donnelly, vantage in free media,” The New York Times , http://tinyurl.com/oy8eb69 . “Campaign finance reform must be addressed,” march 15, 2016, http://tinyurl.com/jcgsmcg . 42 “Hillary Clinton’s pragmatic campaign-finance Las Vegas Review-Journal , Oct. 12, 2015, http:// 29 Jonah Goldberg, “The Bogeymen of the plan,” The Washington Post , Sept. 8, 2015, http:// tinyurl.com/hunrf94 . ‘Billionaire Class,” National Review , Jan. 15, tinyurl.com/jptaj9e . 17 Richard L. Hasen, “How Scalia’s Death 2016 , http://tinyurl.com/j98tr4t . 43 Harold meyerson, “A campaign finance idea whose time has come,” The Washington Post , march 25, 2015, http://tinyurl.com/hjtvdvh ; About the Author “Taxes and Political Contributions,” Take Back Tom Price , a contributing writer for CQ Researcher , is a Wash - Our Republic, http://tinyurl.com/jkqecgz . 44 “Principles of Reform,” Every voice Center, ington-based freelance journalist whose focus includes politics and http://tinyurl.com/j6adulq . government. Previously, he was a correspondent in the Cox News - 45 Paul Blumenthal, “maine, Seattle Pave Next papers Washington Bureau and chief politics writer for The Dayton Path for Campaign finance Reform,” The Huff - Daily News and The (Dayton) Journal Herald. He is author or ington Post , Nov. 4, 2015, http://tinyurl.com/ co-author of five books including, with former U.S. Rep. Tony Hall hmahf48. (D-Ohio), Changing The Face of Hunger: One Man’s Story of 46 John wagner, “Republican Larry Hogan to How Liberals, Conservatives, Democrats, Republicans and People use public funds in campaign for governor of of Faith Are Joining Forces to Help the Hungry, the Poor and maryland,” The Washington Post , July 9, 2014, the Oppressed. His previous CQ Researcher reports have examined http://tinyurl.com/gpdpkce ; Erin Cox and michael political polarization and social media in campaigns. Dresser, “Hogan defeats Brown,” The Baltimore Sun , Nov. 5, 2014, http://tinyurl.com/j2fwesf .

428 CQ Researcher 47 “In Seattle, a Campaign finance Plan that voters Control” The New York Times , Nov. 7, 2015 , http://tinyurl.com/j346nw6 . FOR MORE INFORMATION 48 Bruce Ackerman and Ian Ayres, “ ‘Democracy Brookings Institution , 1775 massachusetts Ave., N.w., washington, DC 20036 ; dollars’ can give every voter a real voice in 202-797-6000 , www.brookings.edu . Think tank studying politics and elections. American politics,” The Washington Post , Nov. Campaign Finance Institute , 1775 I St., N.w., Suite 1150, washington, DC 20006 ; 5, 2015, http://tinyurl.com/jbvwh96 . 202-969-8890 ; www.cfinst.org . Nonpartisan think tank that researches and issues re - 49 “The American Anti-Corruption Act full Pro - ports on campaign finance. visions,” Represent.Us, http://tinyurl.com/hujtwge . Campaign Legal Center , 1411 K St., N.w., washington, DC 20005 ; 202-736-2200 ; 50 “Taxes and Political Contributions,” Take www.campaignlegalcenter.org . Nonprofit law organization that opposes voting re - Back Our Republic, http://tinyurl.com/jkqecgz . strictions and “elections dominated by wealth.” 51 Emily Swanson and Julie Bykowicz, “AP- Center for Competitive Politics , 124 west St. South, Suite 201, Alexandria, vA NORC Poll: Americans not fans of public fi - 22314 ; 703-894-6800 ; www.campaignfreedom.org . Advocacy group that favors repeal nancing,” The Associated Press, Dec. 8, 2015, of campaign-finance regulations. http://tinyurl.com/gpb9z95 . Center for Political Accountability , 1233 20th St., N.w., Suite 205, washington, 52 R. Sam Garrett, “Public financing of Presi - DC 20036 ; 202-464-1570 ; http://politicalaccountability.net . Advocacy group that presses dential Campaigns: Overview and Analysis,” corporations to disclose all their political spending. Congressional Research Service, Jan. 29, 2014, Center for Responsive Politics , 1101 14th St., N.w., Suite 1030, washington, DC http://tinyurl.com/j9m3m5d . 20005 ; 202-857-0044 ; www.opensecrets.org . Nonpartisan research organization that 53 Dan Janison, “Albany push-pull on public tracks and publishes reports on contributions and expenditures. financing,” Newsday , may 6, 2013, p. 12. Take Back Our Republic , 246 E. Glenn Ave., Auburn, AL 36830 ; 334-329-7258 ; 54 Dean Skelos, “A Recipe for Political Corruption,” www.takeback.org . Conservative advocacy group that supports regulation of cam - The [Albany, N.Y.] Times-Union , may 12, 2013 , paign finance. http://tinyurl.com/juadzt6 . 55 Richard w. Painter, “The Conservative Case for Campaign-finance Reform,” The New York 66 Paul Blumenthal, “mcCutcheon v. fEC: Supreme Corporate Reform Coalition, June 2012, http:// Times , feb. 3, 2016, http://tinyurl.com/zpdt3p4 . Court Skeptical Of Campaign Contribution Limits,” tinyurl.com/6sx3jg6 . 56 Unless otherwise noted, this historical section The Huffington Post , Oct. 8, 2013, http://tinyurl. 77 Jamie B. Raskin, “A shareholder solution to draws on the following sources: “money-in- com/lgccozh ; matea Gold and Tom Hamburger, ‘Citizens United,’ ” The Washington Post , Oct. 3, Politics Timeline,” Center for Responsive Politics, “Political parties go after million-dollar donors in 2014, http://tinyurl.com/hwgbmsv . http://tinyurl.com/zsw9kku ; Jost, op. cit. ; Christina wake of looser rules,” The Washington Post , Sept. 78 “Disclosure levels,” Take Back Our Republic, L. Lyons, “Nonprofit Groups and Partisan Politics” 19, 2015, http://tinyurl.com/q99jytc . http://tinyurl.com/jkqecgz . CQ Researcher , Nov. 14, 2014, pp. 961-984. 67 “The truth behind fake political ads,” op. cit. 79 mark Sommerhauser, “Scott walker signs 57 “fundraising a foreign idea to founding 68 Nicholas Confessore, “Rich Governor and bills dismantling GAB, overhauling campaign fathers,” Center for Responsive Politics, http:// Allies Tilt Illinois’s future,” The New York Times , finance law,” Wisconsin State Journal , Dec. 16 , tinyurl.com/hxsxkj9 . Nov. 30, 2015, http://tinyurl.com/pgkyftr . 2015, http://tinyurl.com/gw2vyc7 . 58 Lindsay Renick mayer, “fundraising wasn’t 69 Ibid. 80 Howard fischer, “Bill overhauling campaign for the forefathers,” Center for Responsive Pol - 70 Nina Totenberg, “Ruling: Judicial Candidates finance laws heads to Arizona governor,” Ari - itics, feb. 22, 2007, http://tinyurl.com/jxaw2jb . Can’t Personally Solicit Campaign funds,” NPR, zona Daily Star , march 29, 2016, http://tinyurl. 59 Paul Starr, “How Gilded Ages End,” The April 30, 2015, http://tinyurl.com/hvrbt82 . com/hn4pgsc . American Prospect , April 29, 2015, http://tiny 71 matea Gold, Anu Narayanswamy and Tom 81 Sargent, op. cit. url.com/zf9runj . Hamburger, “Donations, big and small, con - 82 H.R.430 — DISCLOSE 2015 Act, http://tiny 60 meyerson, op. cit. tinue to pour into 2016 race,” The Washington url.com/hpr6ard . 61 will Tucker, “Two dozen dark money groups Post , feb. 1, 2016, http://tinyurl.com/z3q8q2a . 83 “H.J.Res.48 — Proposing an amendment have busted 50 percent cap on politics at 72 matea Gold, “more mystery corporate do - to the Constitution of the United States pro - least once,” Center for Responsive Politics, nations flow to presidential super PACs,” The viding that the rights extended by the Con - Dec. 9, 2015, http://tinyurl.com/zgxpw9p . Washington Post , march 22, 2016, http://tinyurl. stitution are the rights of natural persons only,” 62 Jost, op. cit. com/hljyjd3 . http://tinyurl.com/zywj8mp . 63 Kathy Kiely, “Public campaign funding is so 73 matea Gold, “The fEC just made it easier 84 Chuck Ross, “Trump: ‘I Love The Idea Of broken that candidates turned down $292 million for super PAC donors to hide their identities,” Campaign finance Reform,’ ” The Daily Caller , in free money,” The Washington Post , feb. 9, The Washington Post , march 7, 2016, http://tiny Aug. 14, 2015, http://tinyurl.com/z7pzona . 2016, http://tinyurl.com/h2q5ak5 . url.com/jj248sd . 85 David A. Graham, “GOP Candidates Discover 64 floyd Abrams, “Buckley After 40 Years,” forum 74 Ibid. the Problems with money in Politics,” The At - on Communications Law 21st Annual Conference, 75 “Disclosure and Reporting Requirements,” lantic , April 20, 2015, http://tinyurl.com/j9kxcan . feb. 4-6, 2016, http://tinyurl.com/zb4l8fg . National Conference of State Legislatures, July 86 Adam Liptak, “Supreme Court Appointment 65 FEC v. Massachusetts Citizens for Life, Inc. 17, 2015, http://tinyurl.com/h7jywop . Could Reshape American Life,” The New York (1986), No. 85-701, http://tinyurl.com/j2ubmnz . 76 “Sunlight State By State After Citizens United ,” Times , feb. 18, 2016, http://tinyurl.com/h56w4rq .

www.cqresearcher.com May 6, 2016 429 Bibliography Selected Sources

Books Levine , Bertram J. , and Michael Johnston , “Making cam - paign contributions anonymous,” The Washington Post , Boatright , Robert G. , ed., The Deregulatory Moment? A Sept. 4, 2014 , http://tinyurl.com/hoa57o6 . Comparative Perspective on Changing Campaign Finance Two political scientists argue that money’s influence on Laws , University of Michigan Press , 2015 . public officials is best combated by secrecy rather than greater Political scientists from seven western countries contribute disclosure. essays on what they describe as the erosion of regulation in the United States and what it portends for other democracies. Painter , Richard W. , “The Conservative Case for Campaign- Finance Reform,” The New York Times , Feb. 3, 2016 , http:// Hasen , Richard L. , Plutocrats United: Campaign Money, tinyurl.com/zpdt3p4 . the Supreme Court, and the Distortion of American Elec - A University of minnesota law professor and former ethics tions , Yale University Press , 2016 . adviser to President George w. Bush says Republicans should A professor of law and political science at the University back campaign finance reforms because big money in politics of California, Irvine, argues that campaign finance restrictions has created big government. are constitutional, likening these curbs to libel and child- pornography laws that restrict free speech. Stohr , Greg , “Bloomberg Poll: Americans Want Supreme Court to Turn Off Political Spending Spigot,” Bloomberg Mayer , Jane , Dark Money: The Hidden History of the Bil - Politics , Sept. 28, 2015 , http://tinyurl.com/pn395v9 . lionaires Behind the Rise of the Radical Right , Doubleday , A poll finds most Americans — including 80 percent of 2016 . Republicans — support reversing the Supreme Court’s 2010 A staff writer for The New Yorker investigates multibillionaire Citizens United ruling. brothers Charles and David Koch and their political network. Reports and Studies Teachout , Zephyr , Corruption in America: From Ben - jamin Franklin’s Snuff Box to Citizens United , Harvard “The 2015 CPA-Zicklin Index of Corporate Political Dis - University Press , 2014 . closure and Accountability,” Center for Political Account - A fordham University law professor, who is running for a ability , Oct. 8, 2015 , http://tinyurl.com/h77yzfs . U.S. House seat in New York, offers an overview of America’s The Center for Political Accountability surveys the Standard changing understanding of corruption and a critique of Supreme & Poor’s 500 index of top companies in leading industries Court reasoning that has loosened campaign-finance regulation. to determine whether the firms are disclosing their political activities. Articles Garrett , R. Sam , “Public Financing of Presidential Cam - Carney , Eliza Newlin , “Political Money: New Best-Selling paigns: Overview and Analysis,” Congressional Research Book Genre?” The American Prospect , Jan. 28, 2016 , http:// Service , Jan. 29, 2014 , http://tinyurl.com/jz6pyae . tinyurl.com/gw34zum. A government specialist at Congress’ research agency reviews A senior editor at the liberal magazine reviews several the history and current status of public financing. books about campaign finance. La Raja , Raymond J. , and Jonathan Rauch , “The state Confessore , Nicholas , and Karen Yourish , “Measuring Donald of state parties — and how strengthening them can im - Trump’s Mammoth Advantage in Free Media,” The New prove our politics,” Brookings Institution , March 2016 , York Times , March 15, 2016 , http://tinyurl.com/jcgsmcg. http://tinyurl.com/jkfyx6w . A company analyzes the commercial value of news coverage A political scientist at the University of massachusetts, Amherst and explains how Donald Trump became the Republican (La Raja) and a senior fellow in governance studies at Brookings front-runner despite spending less than opponents. (Rauch) survey parties in the states and find that changes in campaign regulations have weakened them. Estroff , Alex , “In Defense of Citizens United: The Misplaced Anger of the American People and How They Are Battling Malbin , Michael J. , “Citizen Funding for Elections,” Cam - the Problem of Money in Politics,” Georgia Political Re - paign Finance Institute, 2015 , http://tinyurl.com/zd3emcb . view , March 14, 2016 , http://tinyurl.com/hmyt8rl . The executive director of a washington-based think tank A writer for a University of Georgia publication focusing reviews efforts to increase the importance of small donors on politics says concerns over the Citizens United decision in political campaigns, such as through tax credits or gov - are unsubstantiated. ernment subsidies of contributions.

430 CQ Researcher The Next Step: Additional Articles from Current Periodicals

Presidential Campaign Spending Fraser , Jayme , “Influence of money in elections likely to be a persistent topic during race for governor,” Billings Ballhaus , Rebecca , and Beth Reinhard , “Trump’s Campaign Gazette , Jan. 26, 2016 , http://tinyurl.com/jqvf5ja . Spending on the Rise,” The Wall Street Journal , April 21, montana Republican gubernatorial candidate Greg Gianforte 2016 , http://tinyurl.com/jm5njra . told supporters he would not accept donations from political Donald Trump’s campaign doubled its spending in march, action committees (PACs), but he has donated to organizations but some experts say his self-financing and efforts to avoid as - that oppose donor disclosure. sociating with political insiders have led him to hire inexperienced staff, which may cost him delegates at state conventions. Super PACs

Gold , Matea , and Anu Narayanswamy , “Cruz’s high spend - McGee , Celia , “A ‘Super PAC’ Where Art Meets Politics,” The ing rate intensifies his need to find new donors,” The New York Times , April 24, 2016 , http://tinyurl.com/zfgfw6n . Washington Post , April 20, 2016 , http://tinyurl.com/zrk A group of politically and socially conscious artists formed sxvy . a super PAC that aims to create a national platform for pro - Texas Sen. Ted Cruz has spent most of his presidential moting the artistic expression and views of ordinary Americans campaign budget on advertising and fundraising, and Republican while remaining politically neutral. strategists worry he already has exhausted donor support unless he becomes the Republican presidential nominee. Mullins , Brody , and Melanie Trottman , “Union Effort to Create Super PAC Stalls,” The Wall Street Journal , April 6, Thomson , Jason ,“Sanders says Clinton violated campaign 2016 , http://tinyurl.com/zrzjdcz . spending laws,” The Christian Science Monitor , April 19, Labor unions are struggling to choose a leader for a proposed 2016 , http://tinyurl.com/ja9yj6t . super PAC that would support labor-friendly Democrats vermont Sen. Bernie Sanders accused fellow Democratic because they disagree about who will run the organization presidential candidate Hillary Clinton of using funds from and direct spending efforts. the Democratic National Committee to pay staffers, a potential violation of campaign finance law. Schouten , Fredreka , “Super PACs scramble to get delegates to dump Trump,” USA Today , April 6, 2016 , http://tinyurl. Public Campaign Funds com/gufmkd9 . Several super PACs that oppose Donald Trump hope to Mistler , Steve , “Maine Legislature backs replenishment persuade Republican delegates to support Ted Cruz by dis - of public fund for financing campaigns,” Portland Press tributing anti-Trump ads, but Trump advisers say many anti- Herald , April 12, 2016 , http://tinyurl.com/z6o66je . establishment Republicans will oppose the groups’ involvement The maine Legislature approved a bill that would reinstate at conventions. and distribute public campaign financing for 2016 State House candidates, but some lawmakers expect Republican Gov. Paul ITING CQ RESEARCHER LePage to veto the measure. C Sample formats for citing these reports in a bibliography Terrell , Steve , “PRC chair faces denial of public funds for include the ones listed below. Preferred styles and formats campaign,” The Santa Fe New Mexican , April 10, 2016 , vary, so please check with your instructor or professor. http://tinyurl.com/j7fjqsb . The New mexico Secretary of State’s Office disqualified un - mLA STYLE opposed incumbent Public Regulation Commission Chair va - Jost, Kenneth. “Remembering 9/11.” CQ Researcher 2 Sept. lerie Espinoza from receiving nearly $18,000 in public campaign funds because she accepted two small private donations. 2011: 701-732. Self-financing Campaigns APA S TYLE Jost, K. (2011, September 2). Remembering 9/11. CQ Researcher, DelReal , Jose A. , “Trump campaign disavows pro-Trump 9, 701-732. super PAC,” The Washington Post , April 22, 2016 , http:// tinyurl.com/gwrwssq . CHICAGO STYLE Donald Trump’s presidential campaign asked a super PAC Jost, Kenneth. “Remembering 9/11.” CQ Researcher , September that spent at least $1 million in advertising for the billionaire 2, 2011, 701-32. to stop affiliating with the campaign because it could damage Trump’s credibility in his goal to be self-funded.

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