Showing posts with label Contributions. Show all posts
Showing posts with label Contributions. Show all posts

Monday, October 7, 2013

Eroding the Checks on Campaign Contributions


WASHINGTON — Shaun McCutcheon, an electrical engineer and self-described “conservative with a pretty good libertarian streak,” remembers the first time he was shown a “massively confusing chart” about federal limits on political contributions.


No more than $ 48,600 to candidates for federal office per two-year election cycle. No more than $ 74,600 to political parties and political action committees. Maximum $ 123,200 total.


The Alabama Republican didn’t understand why he couldn’t write as many checks as he wanted, and he asked a Republican lawyer friend. “He said, ‘Oh, you can challenge those. It will go all the way to the Supreme Court,’” McCutcheon told me. “I didn’t believe it would actually happen.”


This week, the court hears oral arguments on McCutcheon v. Federal Election Commission. Campaign finance reform advocates warn that the case could be the next Citizens United, further dismantling limits on big money in politics. Opponents hope they’re right.


In a world of $ 10 million checks to super PACs, the notion of strict overall limits on giving directly to candidates and parties has a rather quaint ring. In the aftermath of Citizens United and related cases, donors interested in pumping big money into elections have ample opportunities. Donors seeking to steer mega-resources to a campaign aren’t especially constrained by the $ 2,600 limit on direct giving to a particular candidate.


Is a candidate aware of a donor’s big check to a supposedly independent super PAC really less indebted than if the contributions went directly to candidates and parties, violating the limits at issue in McCutcheon?


Still, lifting the limits on overall direct giving would further undermine a system awash in big money. After all, it was only 11 years ago that Congress banned unlimited “soft money” contributions to political parties. With election lawyers adept at setting up joint fundraising committees that collect cash for multiple candidates simultaneously, eliminating overall limits would reopen the soft money spigot for individual donors.


In addition, dollars that flow directly to candidates are more valuable to them — candidates get to control the message and spending — and therefore potentially more corrupting. And even in an era of super PACs, it’s chilling to imagine individuals being legally allowed to funnel — and, worse, officeholders or candidates being legally allowed to solicit — direct contributions totaling more than $ 3.6 million (the sum if someone gave the maximum to all Senate and House candidates and party committees).


But the stakes in McCutcheon’s case don’t simply involve the precise limits themselves. What matters for the future of campaign finance rules, should the justices rule for McCutcheon, is what rationale they use.


Since the 1976 decision in Buckley v. Valeo, the court has distinguished between limits on campaign contributions and limits on political spending. Contribution limits are treated with deference, and have almost always been upheld, on the theory that they prevent corruption or the appearance of corruption while imposing a “marginal” restriction on speech. What matters, the court has said, is the symbolic act of contributing, not the size of the check. By contrast, restrictions on spending are subject to the toughest test because they directly curtail individuals’ own speech and, at least in the court’s dubious view, such independent expenditures by definition can’t be corrupting.


Time was that advocates of limits on campaign cash lamented the contribution/expenditure distinction because it was used to strike down spending limits. Now they cling to it as the last bulwark against a campaign finance free-for-all.


McCutcheon’s lawyers, the Republican National Committee and Senate Minority Leader Mitch McConnell have asked the court to use his case to overrule Buckley and subject both contribution and spending restrictions to strict scrutiny as intrusions on free speech.


Three justices — Antonin Scalia, Anthony Kennedy and Clarence Thomas — are on record calling for Buckley to be overruled. Chief Justice John Roberts and Justice Samuel Alito have resisted that urge, and the court could invalidate the overall contribution limits without going so far. Yet the activist inclination displayed in Citizens United could re-emerge. The court granted separate time to the lawyer for McConnell, whose brief focuses on overruling Buckley, to argue for that outcome.


The consequences, as the Campaign Legal Center has warned, “would destabilize all contribution limits.” Already the RNC’s lawyer, James Bopp, has cases in the pipeline attacking the long-standing ban on corporations donating directly to candidates. Limits on individual’s contributions to particular candidates might survive even under a stricter standard, but a challenge would certainly be mounted.


This is a case to watch — and a cause for worry. 




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Eroding the Checks on Campaign Contributions

Tuesday, May 28, 2013

Elections BC - Financial Reports and Political Contributions



Elections BC’s Financial Reports and Political Contributions (FRPC) system allows you to search political contributions of 0 or more, and review and print…



Elections BC - Financial Reports and Political Contributions

Saturday, May 25, 2013

Wall Street Shaped Bill Easing Oversight, and Kept Contributions Coming


Banking industry lobbyists helped members of the House Financial Services Committee craft a bill loosening regulators’ oversight of various types of trading, with lobbyists from Citibank playing a large role in the process, according to a report in today’s New York Times. Seventy-one of the 80 lines in a bill recently approved by the panel were written with the assistance of lobbyists for major banks, said the report, which is based on emails reviewed by the paper’s reporters; two paragraphs were copied from the lobbyists nearly word-for-word.

bigstock-Stock-Market-board-24279119.jpgAccording to Center for Responsive Politics data, in the first quarter of 2013, members of that committee received more than $ 1.3 million in donations to their campaigns and leadership PACs from the securities and investment industry and commercial banks.




The donations came from PACs representing the financial firms, individuals they employ and lobbyists who represent the firms. By far the largest source of cash from the two industries was the Investment Company Institute, a trade association representing Wall Street firms. The ICI gave at least $ 129,000 to members of the House Financial Services Committee. Other trade groups representing banks and investment firms, including the American Bankers Association and the Independent Community Bankers of America, were also major contributors. 

Among individual corporations, UBS was the top donor to the committee’s members, contributing $ 88,000 so far this year.

The banking and securities and investment industries together contributed about the same amount overall to members of the committee in the first quarter of 2011 as in the first three months of 2013 — roughly $ 1.3 million. But the commercial banking industry — including Citigroup — gave substantially more this time around, while the securities industry gave less.


Banking industry companies increased their contributions in 2013 to $ 640,286, from $ 497,169 in early 2011. Citigroup, in particular, jumped from $ 19,500 in donations to committee members to $ 39,500. UBS went from $ 64,250 to $ 88,000. Wells Fargo also opened its checkbook a little wider this year, giving $ 80,000, compared with $ 31,250 in 2011.


The ABA gave $ 90,750 in the first quarter of 2013, up from $ 58,650 in the comparable period in 2011.


Although the New York Times article cites a growing friendliness between the banking industry and congressional Democrats, the money going to the members of the committee this year overwhelmingly tilted towards Republicans. Seventy percent of the $ 1.3 million went to GOP lawmakers. Republicans control the House, and thus the committee, and it is not unusual to see the majority party pick up more cash from donors, regardless of the topic or committee.



The top recipient of cash from the two industries so far this year is Rep. Jeb Hensarling (R-Texas), the chairman of the committee, who has picked up $ 140,400. The top Democrat on the committee, Rep. Maxine Waters (D-Calif.), who has criticized the legislation in question, received only $ 6,000.

The bill, the Swaps Regulatory Improvement Act (H.R. 992), was sponsored by committee member Randy Hultgren (R-Ill.), who has received $ 50,100 from commercial banks and the securities and investment industry, the majority of which came from individuals rather than PACs. One of his co-sponsors, who defended the legislation to the Times, is Rep. Jim Himes (D-Conn.) who took in a similar amount from the two industries — about $ 47,700.

According to FEC records, Citigroup’s PAC gave Hultgren’s campaign committee $ 2,000. And it gave Himes’ campaign $ 1,000 and his leadership PAC, Jobs and Innovation Matter PAC (JIM PAC) another $ 2,500. The donations to Hultgren, JIM PAC and a $ 5,000 donation to Hensarling’s leadership PAC were all made on March 26.

The panel passed the bill this month despite objections from the Treasury Department. It awaits action in the full House.



Images: Stock market board via BigStockPhoto.com



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Wall Street Shaped Bill Easing Oversight, and Kept Contributions Coming