Citizens United: The Corporate Buy-Out of Elections

Citizens United v Federal Election Commission, a landmark decision by the United States Supreme Court decided on January 10, 2010, holding that corporate funding of independent political broadcasts in candidate elections cannot be limited under the First Amendment is having a profound effect in this year’s mid-term elections.

“… the Court’s opinion is thus a rejection of the common sense of the American people, who have recognized a need to prevent corporations from undermining self-government since the founding, and who have fought against the distinctive corrupting potential of corporate electioneering since the days of Theodore Roosevelt. It is a strange time to repudiate that common sense.” — from Justice John Paul Steven’s dissenting opinion.

As I understand it, prior to the Citizens United ruling, Corporations were only able to create “issues” advertising around some specific issue asking viewers to contact their congressmen. They weren’t able to make unlimited buys of advertising via special interest groups (who don’t have to disclose their donors) to attack or support candidates running for office within the waning weeks leading up to the election. That’s no longer the case.

So let’s put the Court’s ruling into perspective (as it’s being practiced) in this post-Citizens United election season. In 2008, Exxon-Mobil posted profits of $45 billion. If Exxon-Mobil were to donate just 1% of its 2008 profits on political advertising in this election, it would exceed what was spent by both Obama and McCain combined throughout the 2008 election season. And, it they were to donate that money via one of the special-interest groups channeling monies into campaign advertising, (1) we wouldn’t know they were behind the attack ads being introduced, and (2) they could influence the election of an oil company friendly legislator.

No longer will it be the campaign committees of the major parties who are the big spenders in election campaigns. They’re being eclipsed by special-interest group spending. In this post-Citizens United election season, we’re seeing huge sums of money being channeled into GOP-sympathetic special-interest groups. Those special-interest groups are spending upwards of five times what they spent during the 2006 mid-terms.

To help you understand the magnitude of those expenditures, here’s the top 10 spenders for just last week alone:

  1. National Republican Congressional Committee — $5,382,422 (for adds opposing 44 Democratic candidates)
  2. Democratic Senatorial Campaign Committee — $2,715,814 (for ads in 7 key races opposing Republicans)
  3. Democratic Congressional Campaign Committee — $2,686,462 (ads opposing 29 Republicans)
  4. American Crossroads — $2,345,329 (plus, will be rolling out nearly $4.25 million in political ads in 8 states this coming week)
  5. National Association of Realtors PAC —$1,800,238 ( for ads supporting 3 Republicans and 2 Democrats)
  6. Crossroads GPS — $1,176,704 (for ads opposing 3 Democrats)
  7. Revere America — $781,937 (for ads opposing Democrats)
  8. American Future Fund — $608,461 (for ads opposing Democrats)
  9. National Federation of Independent Business/Save America’s Free Enterprise Trust — $573,751 (for ads supporting Republicans)
  10. Americans for Job Security — $573,702 (for ads opposing Democrats)

Groups like Carl Rove’s American Crossroads and Crossroads GPS are set up as a 501(c)(4) organizations, which means they don’t have to disclose who their donors are. Under IRS rules, these types of groups are considered as tax-exempt “social welfare” group. As such, they’re allowed to spend on campaigns as long as they limit those expenditures to less than half of their total spending and their primary purpose is “the promotion of social welfare.” As I look at the TV ads where the disclaimer indicates the ad was placed by American Crossroads or Crossroads-GPS, I fail to see how those ads are promoting “social welfare.” They’re nothing more than typical Republican attack ads. By the time some one or some entity finally manages to get a challenge of these ads before the courts, it will be far too late, the election will be long over and the damage will have been done. Carl Rove has indicated he’s set a goal of expending $50M in campaign advertising via these two groups.

The U.S. Chamber of Commerce didn’t hit last week’s top ten. But, the U.S. Chamber is vowing to spend $75 million this election cycle, and maybe even more. Like American Crossroads and Crossroads-GPS, the Chamber doesn’t have to reveal who it’s donors are. The major problem with that is the fact that they accept donations from foreign corporations and that there is the possibility of those funds being co-mingled with U.S. corporate funds to influence U.S. elections. They claim they have an accounting system that effectively keeps those funds separate, however, that seems a bit questionable. We should just ‘trust’ them? Like we trusted Exxon in Alaska, or BP in the gulf? I think not. Hopefully, Atty General Holder will take action to investigate their books to ensure they aren’t using foreign contributions to fund their day-to-day operations such that they can shift the majority of the U.S. contributions into attack advertising to influence the elections in favor of corporate interests. If they are indeed operating in that fashion, then contributions from foreign corporations are truly being used to enable the Chamber to sway the election.

The Disclose Act (HR 5175) is before the Congress. It would require special-interest groups who are running political campaign ads to identify their donors and would prohibit foreign influence in Federal elections. That bill passed the House on June 24, 2010, however, all 39 Republicans in the Senate have voted en bloc to prevent it from coming to the Senate floor for debate and a vote, effectively filibustering it.

I can’t think of a better reason to get out and vote for Democrats this election. Republicans are serious about “taking the country back” and they’ll pull every trick in the book they can as well as bending every rule ’til they break. My only question is, “back to what?” The 19th century? If elected, they vow to repeal every bit of progress we’ve made since President Obama was elected. In addition, they want to go after and privatize Social Security, Medicare, Medicaid, and Veteran’s health care. Well, obtaining health care via private insurance companies has worked so well for the masses hasn’t it? Individuals would be able to better manage their own retirement plans via the stock market wouldn’t they? Think again folks and get out and vote.

Understand where the GOP wants to take our nation:

  • Republican Pledge to America, presented by Rep. John Boehner who would be the likely Speaker of the House and 3rd in line for the presidency if Republicans retake the House
  • Republican Roadmap for America, written by Rep. Paul Ryan who would be Chairman of the House Budget Cmtee if Republicans retake the House

Early voting begins at 10:00 AM on Saturday, October 16, 2010. Make your plans now to not only vote, but to vote early this Saturday.