money in politics

PFAW: Scandal Surrounding Senate President is More Evidence of Big Money Assault on Wisconsin

MADISON – Wisconsin Senate President State Senator Mike Ellis’ announcement Friday that he will not seek re-election, which arrived after Ellis was caught on camera claiming he might set up his own political action committee to attack his Democratic opponent, is evidence of the big money assault on the Wisconsin Legislature, said People For the American Way Regional Political Coordinator Scott Foval.

“Mike Ellis apparently felt he had no choice but to raise big cash just to compete, and allegedly was willing to compromise his ethics in the process,” Foval said. “The fact that the Senate President got caught planning to form a super PAC to attack Penny Bernard Schaber is just evidence of a larger problem – too much political money driving who gets elected in Wisconsin.”

People For the American Way and its allies have repeatedly highlighted how Wisconsin Republicans have enacted policies that benefit the wealthy and powerful corporate interests. Since 2010, Wisconsin’s GOP legislators have enacted restrictions on women’s health, restrictions on voting rights, and restrictions on collective bargaining for public employees, as well as a budget that favors wealthy tax payers rather than the middle class. PFAW’s Foval called on citizens to fight back against big money in politics and strike back at the voting booth.

“The time has come for Wisconsin’s voters to take back our state by registering to vote, hitting the streets to knock doors, and voting for progressive candidates who represent the people instead of big money donors,” Foval said.  “This isn’t cause for celebration. It’s a call to put our heads down, and get to work to elect new leadership to the Wisconsin Legislature and Governor’s office.”

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Applying McCutcheon's Logic to Voter ID Laws

If only the courts were as solicitous of the right to vote in elections as they are of the right to purchase them.
PFAW Foundation

Postcard from Arizona to John Roberts: Money Corrupts

In a week in which the Supreme Court turned a blind eye to the reality of money corrupting politics, a story out of Arizona provides a clear example of the insidious influence of the private prison industry and its campaign contributions. 

Arizona has been at the forefront of bad prison policy and big profits for private prison companies. People For the American Way’s 2012 report, “Predatory Privatization: Exploiting Financial Hardship, Enriching the One Percent, Undermining Democracy,” explored how Arizona officials’ political and ideological commitment to prison privatization overrode good policy and common sense. Unbelievably, faced with evidence that privately run prisons were costing taxpayers more, not less, than state-run prisons, some legislators moved to stop the state from collecting the data.

This February, we wrote about Politico’s coverage of the private prison racket. “Companies that manage prisons on our behalf have abysmal records,” author Matt Stroud asked, “So why do we keep giving them our business?” One answer is that the industry spends a fortune on lobbying and campaign contributions.

This week’s story shows how those investments can pay off. According to the Arizona Republic, House Appropriations Committee Chairman John Kavanaugh tried to slip a last-minute $900,000 earmark for private prison giant GEO Group into the state budget. The company is already expected to get $45 million this year under contracts with the state that guarantee the company at least a 95 percent occupancy rate, “virtually ensuring the company a profit for operating its prisons in Arizona.” The state Department of Corrections said the extra money isn’t needed, but Kavanaugh heard otherwise from the company’s lobbyists. GEO executives gave Kavanaugh more than $2,500 in 2012.

The good news is that the Senate Appropriations Committee dropped the extra funding “following an uproar of criticism from Arizonans.”

PFAW

In McCutcheon Decision, Talk of Constituents Seems Out of Place

Chief Justice Roberts waxes eloquent about responsiveness to constituents in an opinion about responsiveness to non-constituents.
PFAW Foundation

Supreme Court's McCutcheon Decision is Great News for Billionaires

The American people should have the power to prevent government of, by, and for the wealthy.
PFAW Foundation

Sheldon Adelson Shops for Next GOP Candidate

The Washington Post reports today that Sheldon Adelson – the casino magnate who spent, with his wife, more than $92 million in the 2012 elections – is in the market for a 2016 GOP presidential candidate to support.

After throwing reams of money at losing candidate Newt Gingrich in the last election, Adelson is now looking for someone he believes will be seen as electable by a country with swiftly changing demographics. He is already being wooed by GOP presidential hopefuls:

The change in attitude comes amid early jockeying by a lengthy list of aspiring Republican presidential contenders to win the affections of the billionaire, who is in the beginning stages of assessing the field.

“The bar for support is going to be much higher,” said Andy Abboud, Adelson’s top political adviser and an executive at the Adelson-run Las Vegas Sands Corp. He added, “There’s going to be a lot more scrutiny.”

This strategy would favor more established 2016 hopefuls such as former Florida governor Jeb Bush, New Jersey Gov. Chris Christie, Wisconsin Gov. Scott Walker and Ohio Gov. John Kasich. All four will descend this week on Adelson’s luxury hotel in Las Vegas, the Venetian, for an important step in what some are calling the “Sheldon Primary.”

Funny, I don’t remember learning about the “Sheldon Primary” in my high school civics class. But in our Super PAC-filled, post-Citizens United world of unlimited election spending, this seems to be the reality of how candidates who have a real shot are chosen. As Harvard law professor and activist Lawrence Lessig puts it,

We have a general election, but only after the funders have had their way with the candidates who wish to run in that general election.

With Adelson essentially interviewing potential candidates, it begs the question: will our presidents be working for the people who elected them, or will they increasingly serve as the puppets of billionaire benefactors? 

When a tiny fraction of the country’s wealthiest people are able to hand-pick candidates, it’s doubtful that we’ll have a government that focuses on the priorities of everyday Americans. A democracy simply doesn’t work if the voices of those of us who aren’t having swanky private dinners with presidential hopefuls are drowned out by the few who are.

PFAW

How Money in Politics Undermines Diversity in Elected Office

During a speech to a packed audience at the University of Washington on Monday, Supreme Court Justice Sonia Sotomayor was asked by a student what problems need to be fixed in order to see more women and people of color in government. 

Sotomayor’s answer, as reported by The Seattle Times, was simple: “Money.”

“Money,” Sotomayor said to laughter. “No, seriously. Look at what’s happening in politics. What’s talking the loudest is money.” For more minorities and women to gain more of a foothold in government decisions, “we’re going to have to work the political system at the highest level,” she said.

Justice Sotomayor is right. Today our country is represented by leaders who, as a whole, look little like the electorate they are supposed to represent and serve. Women are a majority of the population, and yet only make up 20% of the Senate and 18% of the House, putting us 83rd in the world for women’s political representation. We have only one openly LGBTQ person and only a handful of people of color in the US Senate – in 2012 there were no African Americans. This picture is not only problematic in itself, but it also has broad implications for policy outcomes.

It’s true that we have also seen some promising developments in political representation in recent years. The 113th Congress is the most diverse in history, with a record number of women and minorities elected, as well as a number of firsts. As the policy director for the Young Elected Officials Network, I am heartened by the changing faces of leadership at all levels of government, and what this means for our country both symbolically and substantively. But, like Justice Sotomayor, I’m also concerned that our country’s money in politics problem is standing in the way of further progress.

Much has been said lately about the impact of money in politics on political representation. At The Atlantic’s Shriver Report summit on women and poverty in January, former Speaker Nancy Pelosi noted,

If you reduce the role of money in politics and increase the level of civility in debate, more women will run for office… We say to women, we want you to go raise 12 million dollars, and by the way, subject yourself to 10 million dollars in negative publicity.

The influence of money in politics not only fuels corruption and the elevation of special and powerful interests, but it exacerbates the imbalance of power as a whole in our country by creating barriers to political representation for communities who are already marginalized. It perpetuates a system where the country is led by people who don’t understand the daily lived and embodied experiences of their constituents.

On Capitol Hill, we see the effects of this imbalance play out each day. From thwarted gun violence prevention efforts to legislation attacking women’s reproductive health voted on by committees and panels made up entirely of men, we continue to have elected leaders who side against the demonstrated wishes of its voters and with the moneyed interests.

We must pursue reforms that transform our electoral processes, even the playing field for all candidates, and restore the power to the people by reducing the outsized influence of big money and protecting the rights of voters. All indications show that we get better results for everyone when there’s diversity in governing bodies.

It’s both common sense, and a matter of basic human rights.

PFAW Foundation

Money Buys Political Access, New Study Confirms

We can file this under news that should shock no one: a new study has found that members of Congress and their top staffers are significantly more likely to meet with political donors than with other constituents. 

The study – carried out by researchers at Yale and UC Berkeley in partnership with CREDO Action – sought to answer the question, just how much do donations buy access to elected officials in our political system?

Matea Gold at the Washington Post explains the experiment:

Last summer, a group of CREDO fellows e-mailed congressional offices seeking meetings to discuss the measure, sending one of two different form letters.

The first e-mail had the subject line: “Meeting with local campaign donors about cosponsoring bill.” The body of the e-mail said that about a dozen CREDO members “who are active political donors” were interested in meeting with the member of Congress in his or her home district to discuss the legislation.

The second e-mail stripped out the donor references and instead said “local constituents” were looking to meet the member of Congress.

…The e-mails went out to 191 members of Congress – all members of the same political party – who had not already co-sponsored the bill….The results: Only 2.4 percent of the offices made the member of Congress or chief of staff available when they believed those attending were just constituents, but 12.5 percent did when they were told the attendees were political donors. [emphasis added]

Huffington Post’s Amanda Terkel notes that the study could have implications for court cases like the infamous Citizens United v. FEC, which paved the way for unlimited corporate political spending. In the majority Citizens United opinion, Justice Kennedy argued that “independent expenditures do not lead to, or create the appearance of, quid pro quo corruption. In fact, there is only scant evidence that independent expenditures even ingratiate.”

Terkel points out that the new study may debunk the claim that there isn’t evidence that “independent expenditures,” such as those made to a super PAC rather than directly to a candidate, can curry favor with elected officials:

In this experiment, the lawmakers knew nothing about the donors, such as whether they had donated to their campaign in particular, or how much they gave and when. In fact, they could simply have been a donor to a super PAC.

Even so, the Supreme Court’s too-narrow understanding of “corruption” as tit-for-tat exchanges (for example, political bribes) may limit the study’s implications for Citizens United and cases like it.  But it does throw into stark relief how problematic the Court’s frame for understanding political corruption continues to be. When money can buy access to elected officials, we have a serious democracy problem.
 

PFAW Foundation

At Grimes’ Fundraiser, Clinton and Kentucky Dems Call Out GOP Obstruction

Weighing into one of the most watched Senate races this election cycle, Bill Clinton spoke at a campaign event in Louisville on Tuesday putting his political weight behind Alison Lundergan Grimes, who is challenging Sen. Minority Leader Mitch McConnell. Clinton took the opportunity to call out Republican obstruction in government, alluding to the “dumb way” the GOP has tried to run the country:

In the end that’s really what Alison is telling you: ‘Send me to Washington and I’ll do something that makes sense and if there’s a problem with it, I’ll fix it.’ And the other … choice is to just pout if … your party is not in the White House, and make as many problems as you can, stop anything good from happening, and if you can’t stop it at least badmouth it. And then … when there’s a problem do everything you can to make sure the problem is never fixed. … It’s a dumb way to run a country.

Speaking before Clinton, Democratic Rep. John Yarmuth held the Minority Leader accountable for his horrible record of big money in politics, putting it pithily:

[He] is the one who says money is speech. If you have money, he’ll listen.

PFAW

PFAW Calls On Wisconsin Legislature to Give Voters a Choice On Big Money in Politics

MADISON – Yesterday Wisconsin State Senator Dave Hansen (D-Green Bay) introduced SJR 68, a resolution that would place an advisory referendum on the November 2014 ballot calling for a federal constitutional amendment to overturn the U.S. Supreme Court’s 2010 Citizens United v. FEC decision. It is a companion resolution to AJR 50, introduced last year by State Rep. Chris Taylor (D-Madison) in the Wisconsin Assembly. People For the American Way regional political coordinator Scott Foval released the following statement:

“The people of Wisconsin deserve a chance to weigh in on the corrupting influence of corporate spending in our democracy. Wisconsinites have made it clear that money in politics is an issue they care deeply about. To date, 27 local resolutions calling for a constitutional amendment to overturn Citizens United have passed in counties and municipalities across Wisconsin. Thirteen more will be on local referendums in April. Just as Representative Taylor has led on this issue in the Assembly, Senator Hansen recognizes that the unbridled spending the Citizens United decision unleashed is harmful to our democracy.

“While the Republican Assembly leadership continues to block progress on AJR 50, we hope the Republican State Senate leadership will put the people first and pass SJR 68 – allowing voters to decide whether a constitutional amendment to overturn Citizens United is the best way to push back on corporate control of our political process. PFAW continues to stand on the side of the people and will work with our allies in Wisconsin to push for a constitutional amendment to get big money out of politics.”

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On Fourth Anniversary of Citizens United, PFAW Celebrates Growing Movement for Amendment

WASHINGTON – On the fourth anniversary of the Supreme Court’s 2010 decision in Citizens United v. FEC, People For the American Way president Michael Keegan issued the following statement:

“The deeply misguided Citizens United ruling four years ago brought immeasurable harm to our democracy, but it also inspired a re-energized national movement to get big money out of politics. In the four years since, sixteen states and 500 cities and towns have officially gone on record calling for a constitutional amendment to overturn Citizens United and related cases and to take back our democracy from the outsized influence of wealthy special interests.

“Poll after poll shows that the American people are deeply disturbed by the big money in our political system. They want a real voice in our democracy, not one that is overwhelmed by billions of dollars in corporate and special interest spending. We’ll keep up the pressure for commonsense regulations on political spending and a democracy that is truly of, by, and for the people.”

PFAW and ally organizations hosted a Get Money Out of Elections advocacy training in Arlington on Monday afternoon to educate activists about reforms to restore the power in our democracy to the voters. For more information on PFAW’s money in politics advocacy work, please visit: http://www.pfaw.org/GovernmentByThePeople

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Amending the Constitution for Government Of, By, and For The People

The American public and a growing number of public officials are calling for a constitutional amendment to overturn Citizens United and related cases to redefine the role of corporate power in the political sphere and place the election process where it belongs – in the hands of the people.

Karl Rove’s IRS Problem

Thanks to some tax-return digging, ProPublica found this week that the Karl Rove-connected Crossroads GPS actually spent at least $11 million more on political activities last year than they told the IRS. ProPublica’s Kim Barker reported:

New tax documents, made public last Tuesday, indicate that at least $11.2 million of the grant money given to the group Americans for Tax Reform was spent on political activities expressly advocating for or against candidates. This means Crossroads spent at least $85.7 million on political activities in 2012, not the $74.5 million reported to the Internal Revenue Service.

But what’s an extra $11 million spent on political activities, right?  Wrong. Tax-exempt 501(c)(4) social welfare groups are limited in the amount of political spending they can do while maintaining their exempt status. And these developments about Crossroads GPS only underscore the need for more robust government oversight of political spending. 

Unfortunately, this is an effort that has been made much more difficult in the wake of recent Supreme Court rulings. As Michael Keegan noted in May, the 2010 Citizens United v. FEC decision opened the door to an explosion of spending by c(4) groups like Crossroads GPS because it allowed  them to run political ads as long as they weren’t using the majority of their money for electoral work.

Moreover, dark money groups sometimes attempt to underreport the political spending that they do undertake, which has not been helped by the IRS’s past reluctance to issue “bright lines” around what must be counted as political spending.

But that may change soon. The Treasury Department and the IRS are expected to issue guidance today specifying what “candidate-related political activity” entails and how much of it 501(c)(4) social welfare groups are allowed to do.

PFAW

What Universe Is the Roberts Court Living In?

In campaign finance, what is obviously corruption to most of us is just business as usual to the Roberts Court.
PFAW Foundation

Edit Memo: Blockbuster Case Kicks Off New Supreme Court Term: The McCutcheon Steamroller

In the wake of landmark rulings in the Supreme Court’s last term, this coming Court term is shaping up to be at least as consequential.

Support for Amending the Constitution to Overturn Citizens United is Now One-Third of the Way There

Support Growing in U.S. Senate, House of Representatives and State Legislatures

WASHINGTON – Advocates are celebrating a significant milestone in the campaign for a constitutional amendment to overturn the U.S. Supreme Court’s 2010 ruling in Citizens United that opened the floodgates of money from corporations and the ultra wealthy into our political system. Support for the campaign now stands at one-third of what is needed for victory.

The Constitution can be amended by votes of a supermajority of each chamber of Congress, followed by ratification by three-quarters of the states. Support for an amendment now stands at one third of each of those thresholds:

Share required Number needed Number today %
2/3 Senators 67 27 sponsors and co-sponsors 40%
2/3 Representatives 290 99 sponsors and co-sponsors 34%
3/4 States 38 16 official resolutions, ballot measures or official calls for an amendment 42%

“This milestone represents important progress toward a goal that’s critical to preserving the integrity of our democracy,” said Marge Baker, executive vice president of People For the American Way. “Amending our country’s constitution should be difficult.  But this isn’t the first time Americans have encountered a serious problem that needs a serious solution. Citizens United and other cases that paved the way for big money to flood our elections have given us one of those moments. As more states and elected officials go on record in support of an amendment, the clearer it becomes that the American people will not stand to have their voices overpowered by wealthy special interests.”

“In just three years since the Supreme Court’s Citizens United ruling, we have come one third of the way to amending the US Constitution to reclaim our democracy and to ensure that people, not corporations, shall govern in America,” said John Bonifaz, co-founder and executive director of Free Speech For People.  “Americans across the political spectrum are standing up to defend that fundamental promise of government of, by, and for the people.”

“Sixteen states representing tens of millions of Americans and hundreds of cities and towns, from Los Angeles to Boston, have passed resolutions and ballot measures in support of a constitutional amendment to reverse Citizens United," said Karen Hobert Flynn, senior vice president for strategy and programs at Common Cause. “Voters and legislators are justifiably outraged at the way Citizens United has created a system of legalized bribery around our elections, and are building the momentum we need to make a change.”

“Fast gaining momentum, the movement for a constitutional amendment aims to reassert popular sovereignty and return America to the founding constitutional principle embodied in the phrase, We, the People,” said Robert Weissman, president of Public Citizen. “We, the People of the United States are fast on our way to winning a constitutional amendment to ensure our government works for us, not JP Morgan, Pfizer and Walmart.”

Citizens United set a dangerous precedent by opening the floodgates for special interest money in our elections,” said Emma Boorboor, Democracy Associate, U.S. PIRG. “Yet, as a nation we overwhelmingly value the idea that the size of your wallet should not determine the volume of your voice in our democracy. The fact that we are already a third of the way to passing a constitutional amendment to get big money out of politics clearly demonstrates the building momentum and the desire of Americans to stand up for our democratic values.”

Sixteen states have formally called for an amendment by ballot measure, resolutions passed by the legislature, or official letters signed by a majority of state legislators:

California
Colorado
Connecticut
Delaware
Hawaii
Illinois
Maine
Maryland
Massachusetts
Montana
New Jersey
New Mexico
Oregon
Rhode Island
Vermont
West Virginia

In addition, nearly 500 cities, towns, and counties, including New York, Los Angeles, Chicago, and Philadelphia have called for an amendment, and more than 2,000 elected officials nationwide are on record supporting one.

A 2010 Peter Hart poll found that 82% of Americans support congressional action to limit corporate spending on elections (which Citizens United unleashed), and that 79% support a constitutional amendment to accomplish this. This past September, an Associated Press poll found that 83% of Americans favor limits on the amount of money corporations, unions, and other organizations can spend on our elections.

Public support is also bipartisan. The 2010 Peter Hart poll revealed that 68% of Republicans, 82% of independents, and 87% of Democrats support an amendment.  The 2012 AP poll showed that 81% of Republicans, 78% of independents, and 85% of Democrats want to limit corporate, union, and other outside spending.

Free Speech For People works to challenge the misuse of corporate power and restore republican democracy to the people. The group advances the movement to amend the U.S. Constitution to overturn Citizens United v. FEC, an earlier case called Buckley v. Valeo, and the fabricated doctrine of corporate constitutional rights. For more on Free Speech For People, visit: www.FreeSpeechForPeople.org.

Common Cause is a nonpartisan, grassroots organization dedicated to restoring the core values of American democracy, reinventing an open, honest, and accountable government that works for the public interest, and empowering ordinary people to make their voices heard.

People For the American Way engages in lobbying and activist mobilization to support local, state and federal initiatives to ameliorate the impact of, and eventually overturn via constitutional amendment, the effects of Citizens United and other court cases that have opened the floodgates of unlimited corporate and special interest spending to influence elections.  PFAW activates its membership, its youth leadership networks (the Young Elected Officials Action and Young People For Action programs) and its African American Ministers in Action network for money-in-politics work. PFAW co-leads coalition efforts to confirm judges and justices who respect the progressive ethic of the Constitution and has a dynamic political arm engaged in electoral strategies to hold money-in-politics obstructionists accountable.

Public Citizen is national non-profit membership organization. Since 1971, we have fought for corporate and government accountability to guarantee the individual’s right to safe products, a healthy environment and workplace, fair trade, and clean and safe energy sources. Public Citizen is deeply invested in limiting the damaging effect of money in politics and passing an amendment to overturn the Citizens United ruling and related cases. www.DemocracyIsForPeople.org

U.S. PIRG is a citizen's group that stands up to powerful interests whenever they threaten our health and safety, our financial security, or our right to fully participate in our democratic society. For decades, we’ve stood up for consumers, countering the influence of big banks, insurers, chemical manufacturers and other powerful special interests. www.uspirg.org

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The Most Important Conservative Funder You’ve Never Heard Of

It was a big week for lifting the veil – at least a little – on the secretive world of conservative groups funding political campaigns. On Wednesday we wrote about new reports on two of the Right’s shadowy front groups which have been able to disguise the transfer of large sums of money to organizations supporting Republican causes and candidates. 

Then Politico brought us a look inside what they call “the Koch brothers’ secret bank,” a previously unknown group called Freedom Partners which gave a quarter billion dollars in 2012 to sway public debate further to the right. Mike Allen and Jim VandeHei report:

The group, Freedom Partners, and its president, Marc Short, serve as an outlet for the ideas and funds of the mysterious Koch brothers, cutting checks as large as $63 million to groups promoting conservative causes, according to an IRS document to be filed shortly…

The group has about 200 donors, each paying at least $100,000 in annual dues. It raised $256 million in the year after its creation in November 2011, the document shows. And it made grants of $236 million — meaning a totally unknown group was the largest sugar daddy for conservative groups in the last election, second in total spending only to Karl Rove’s American Crossroads and Crossroads GPS, which together spent about $300 million. [emphasis added]

Though you likely have not heard of Freedom Partners before, you’ve heard of the groups it funds – including the NRA, Americans for Prosperity, Heritage Action for America, and Tea Party Patriots. According to their newly-launched website, Freedom Partners is “promoting the principles of a free market and free society” by advocating against scourges like “cronyism in America.” 

This, from one of the biggest spenders in the last election.

Other than the Koch brothers, who are the donors behind this massively influential group?  At this point, it’s hard to know. Despite the group’s president’s insistence that “our members are proud to be part of [the organization],” Freedom Partner’s membership page does not list a single one.  It’s yet another example of the need for legislation like the DISCLOSE Act, which would shed light on the major donors behind the secretive outside groups attempting to shape our elections – and our country.
 

PFAW

McConnell's Defense of Money in Politics Is Hurting Him With Voters

Mitch McConnell sure can pick the issues he takes a stand on. Despite being a true master of gridlock and inaction, he’s been very willing to take steps to erode campaign finance regulations: in May, he continued his long-standing opposition to sound campaign finance regulation by filing an amicus brief with the Supreme Court arguing for fewer federal limits on campaign donations, and last month the court granted him permission to participate in the upcoming oral argument of the case, McCutcheon v. FEC. Given that 90% of voters think there’s already too much money in politics, one might ask why McConnell’s advocating such an unpopular position so strongly.

Perhaps it’s unsurprising, then, that McConnell’s views are catching up with him. A poll released Tuesday by the Public Campaign Action Fund highlights what a terrible strategy this is for a candidate already facing a tough path to reelection: 53% of Kentucky voters had “very serious doubts” about his support for unlimited contributions, with 46% supporting his opponent Alison Lundegran Grimes to McConnell’s 40%. It was already clear that spending by wealthy special interests in politics is extremely unpopular, but it’s very encouraging to see indications that those who support unlimited spending might pay an electoral price for it. McConnell might think it’s worth it to continue taking these unpopular positions if corporations will keep spending on elections like his, but maybe he’s miscalculated here. It’s up to Kentucky voters to prove him wrong. 

PFAW

New Insights Into the Right’s Big Money Shell Game Highlight Need for the DISCLOSE Act

In today’s legal landscape, “following the money” is tricky – but a new report released yesterday shows why this work is critical to anyone who cares about progressive change. The latest digging from the Center for Responsive Politics’ Open Secrets blog has uncovered new information about a multi-tiered money laundering operation through which tax-exempt groups funnel millions to groups supporting right-wing causes and candidates. 

Operating behind a thick veil of secrecy, groups like TC4 Trust and the Center to Protect Patient Rights – which Open Secrets describes as “‘shadow money mailboxes’ – groups that do virtually nothing but pass grants through to other politically active 501(c)(4) organizations” – are able to hide both their donors and their recipients.  By funneling grants through “sub-units,” which are owned by the larger groups but have different names, groups like TC4 Trust put millions into the pockets of 501(c)4 organizations supporting Republican causes in the 2012 elections, such as the advocacy arm of Focus on the Family.

As Open Secrets reports,

[T]heir financial ties run far deeper than previously known.  The groups, TC4 Trust and the Center to Protect Patient Rights – both of which have connections to the billionaire industrialist Koch brothers – have been playing a high-stakes game of hide-the-ball, disguising transfers of millions of dollars from one to the other behind a veil of Delaware limited liability corporations.

The source of political advocacy matters.  This latest example of dark money donor groups obscuring the links of their money trail underscores the urgent need for legislation like the DISCLOSE Act.  This act would bring some basic transparency to the electoral system and require outside groups spending money in elections to disclose their donors – including the original source of donations.  The measure, which was blocked by Senate Republicans in both 2010 and 2012, is a common-sense solution that would help the American people understand who is trying to influence their political opinions and their votes.

PFAW
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