In January President Obama in his Statue of the Union address warned Americans of the deleterious impact the Supreme Court’s ruling in Citizens United would have on our political process:
With all due deference to separation of powers, last week the Supreme Court reversed a century of law that, I believe, will open the floodgates for special interests, including foreign corporations, to spend without limit in our elections. I don’t think American elections should be bankrolled by America’s most powerful interests or, worse, by foreign entities.
While Justice Alito and others criticized Obama’s assertion that “foreign corporations” will be allowed to spend money in elections, ThinkProgress looked into how the Chamber utilizes its foreign branches to raise money for the $75 million it plans to spend on the 2010 election:
A ThinkProgress investigation has found that the Chamber funds its political attack campaign out of its general account, which solicits foreign funding. And while the chamber will likely assert it has internal controls, foreign money is fungible, permitting the Chamber to run its unprecedented attack campign. According to legal experts consulted by ThinkProgress, the Chamber is likely skirting longstanding campaign finance law that bans the involvement of foreign corporations in American elections.
In recent years, the Chamber has become very aggressive with its fundraising, opening offices abroad and helping to found foreign chapters (known as Business Councils or “AmChams”). While many of these foreign operations include American businesses with interests overseas, the Chamber has also spearheaded an effort to raise money from foreign corporations, including ones controlled by foreign governments. These foreign members of the Chamber send money either directly to the U.S. Chamber of Commerce, or the foreign members fund their local Chamber, which in turn, transfers dues payments back to the Chamber’s H Street office in Washington DC. These funds are commingled to the Chamber’s 501(c)(6) account which is the vehicle for the attack ads.