Archive for July 16th, 2012

A photo of Senator Mitch McConnell (R-Ky.)As GOP senators line up in opposition to the DISCLOSE Act, it is becoming clear that the corporate wing of the Republican Party is refusing to budge when it comes to shining light on the secret money that has infested our political system.

Lately, mouthpieces of the corporate wing like George Will and Senate Minority Leader Mitch McConnell (R-Ky.) have been spilling an awful lot of ink about how disclosure of election spending threatens the “free speech” rights of corporations who, because of the Supreme Court’s infamous ruling in Citizens United v. Federal Election Commission, can now spend as much as they like to try to influence who gets elected.

The leaps of logic required to defend unlimited secret corporate political spending are astounding. Even among the conservative Supreme Court Justices, only Justice Clarence Thomas takes this extreme stance against transparency.

In their latest screeds, Will and McConnell insist Corporate America’s new “rights” are threatened by attempts to prevent corporations from anonymously buying our elections by funneling propaganda money into the U.S. Chamber of Commerce, Karl Rove’s Crossroads GPS, and a legion of tax-exempt 501c groups that use vague names (American Action Network, Americans for Prosperity) and their nonprofit status in order to evade accountability.

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There’s no question that our democracy is in desperate need of transparency. Super PACs often take the heat for being secret campaign slush funds, but in 2010, nonprofits outspent Super PACs 3-to-2. And 90 percent of that money – almost $84 million – came from groups that never disclose their donors. So far in 2012, these groups have accounted for two-thirds of all political advertising purchased by outside groups.

But the veil of secrecy shrouding our elections could be lifted by Congress – if it musters the willpower. The Senate is about to vote on a crucial piece of legislation called the DISCLOSE Act, which would go a long way toward lifting the veil of secrecy shrouding our elections. It would require all Super PAC, nonprofits, corporations, labor organizations and trade associations that spend more than $10,000 or more on campaign-related advertisements to report the source of their funding to the Federal Election Commission (FEC). The FEC would then be required to post the disclosure reports online within 24 hours.

Super PACs already are subject to some disclosure requirements, but corporations, nonprofits and trade associations like the U.S. Chamber of Commerce are not required to report their donors.

That’s not to say that Super PACs haven’t been playing the secrecy game. The DISCLOSE Act will crack down on a handy loophole Super PACs have been exploiting to keep their donors hidden: the use of 501(c)4s, or “social welfare” nonprofit organizations. Unlike Super PACs, nonprofits do not have to disclose their donors so long as politics is not their “primary purpose.” However, the FEC has no exact definition for what constitutes excessive involvement in politics. This ambiguity leaves the door wide open for hyperpolitical nonprofit organizations that are essentially Super PACs in everything but name, and should therefore be subject to disclosure, to spend away.

Crossroads GPS is one such beast; it is a faux nonprofit affiliated with the Super PAC American Crossroads. Crossroads the Super PAC is subject to FEC reporting requirements, but Crossroads GPS can take unlimited money from anyone, corporations included, and not disclose its donors. Since the FEC can’t decide where the threshold for “primary purpose” lies, GPS can run so-called issue ads that pertain to the election, or it can simply transfer the funds to American Crossroads, its Super PAC. American Crossroads can then just list GPS as its donor, and we can all scratch our heads and wonder where the money came from.

If it seems far-fetched, keep in mind that as of April, $8 of every $10 raised by Crossroads GPS went to the non-disclosing GPS group. Together the two Crossroads groups plan to spend $300 million in the 2012 election, and the bulk of it is likely to be undisclosed.

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Today’s Senate vote on the DISCLOSE Act could help shed light on the billionaires, shadowy outside groups and corporations spending heaps of cash to influence our elections. It could ensure voters fully understand the barrage of campaign advertising assaulting their television screens. It could even force some accountability into a democracy, and marketplace, otherwise plagued by darkness and secrecy.

It could happen…

The legislation would be huge win for voters who overwhelmingly favor campaign finance reform and want to know how corporations and other outside sources are spending money in politics. In fact, voters want more than just sunlight when it comes to corporate political spending. In a study conducted in April, 80 percent of those surveyed said corporations should be required by law to get approval from shareholders before spending money on politics.

Many opponents of disclosure say the threat from corporate spending has been overblown and that Super PACs are raking in tons of cash from individuals, but corporations have accounted for less than 20 percent of donations to these groups. According to Senate Minority Leader Mitch McConnell (R-Ky.), “not a single Fortune 100 company contributed a penny to the eight super PACs that supported the Republican primary candidates.

So does that mean voters have it wrong and corporations are sitting this one out?

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