ThinkProgress Logo

Stories tagged with “Campaign Finance

Justice

New ‘Progressive’ Super PAC Actually Backing Conservatives, Run By Former Consultants For Rove And Bachmann

Senate nominee Gabriel Gomez (R-MA)

Senate nominee Gabriel Gomez (R-MA)

A secretive new super PAC with the misleading name “Americans for Progressive Action” has made a $700,000 ad buy on behalf of Massachusetts Republican Senate nominee Gabriel Gomez. But while the group claims it is not partisan and will back independent-minded candidates, the group’s leadership includes Republican consultants with ties to Karl Rove and Rep. Michele Bachmann (R-MN).

The super PAC — which will not have to disclose any of its donors until after the June 25 special election to fill the remainder of Secretary of State John Kerry’s Senate term — says it will back “people with a more independent streak who care more about doing what is right, than relying on partisan politics,” and sees Gomez as a “moderate, reasonable candidate.”

But the committee’s treasurer, Nancy H. Watkins of Tampa, FL, is a prominent Republican accounting and compliance expert who has served for former Reps. David Rivera and Rick Renzi (R-AZ), and Bachmann’s unsuccessful 2012 presidential campaign. Her husband, Robert I. Watkins, is assistant treasurer and a Gov. Rick Scott (R-FL) appointee and was a major bundler for both the George W. Bush (R) and Mitt Romney (R) presidential campaigns.

More notably, The Hill reported Wednesday, Americans for Progressive Action’s spokeswoman is Sheena Tahilramani. Tahilramani served for several years as chief of staff for Karl Rove’s company and was media liaison for the Republican strategist. She now works as head of marketing and publicity for a consulting firm whose clients include birther Joseph Farah’s WND Books.

In a Senate debate Tuesday, Gomez defended the Supreme Court’s controversial Citizens United ruling — which helped allow unlimited spending by outside groups like Americans for Progressive Action and Rove’s Crossroads GPS — as “just free speech.” Despite requests by his opponent, Rep. Ed Markey (D), Gomez has repeatedly refused to sign a “People’s Pledge” to keep outside money out of the race, like the one agreed to by then-Sen. Scott Brown (R) and Sen. Elizabeth Warren (D) in their 2012 race.

Justice

Pro-Transparency Republicans Seek To Circumvent Montana House GOP On Disclosure Bill

State Sen. Jim Peterson (R-MT)

State Sen. Jim Peterson (R-MT)

Months after the GOP-controlled Montana House of Representatives blocked a state DISCLOSE Act from coming to the floor, a group of Republican legislators are pushing for a ballot referendum on political transparency.

The Billings Gazette reported Monday that State Sen. Jim Peterson (R) and six other Republican legislators are launching a ballot initiative to require secretive outside groups in Montana to disclose who is funding their political advertisements. If the initiative qualifies for the ballot, voters would consider the proposal in 2014.

Gov. Steve Bullock (D) has supported the legislative version of the proposal, also sponsored by Peterson, which passed the state’s Senate on a 29-21 vote. But on a 54 to 46 vote, House Republicans rejected a move to bring the bill to the floor.

Supporters will need to collect 24,175 signatures by next June — that total must include at least 5 percent of the voters in at least 34 of the state’s 100 House districts.

Justice

New Yorkers Rally For Campaign Finance Reform

Hundreds of New Yorkers rallied in Albany on Wednesday to urge the New York Senate to enact campaign finance reform legislation, including public financing for state candidates. But while the State Assembly has already passed a reform bill, the Senate’s governing coalition has yet to bring forward a bill with less than a month left in session.

Though Democrats outnumber Republicans in the 63-member New York State Senate, the body is controlled by a coalition of Republicans and the five-member Independent Democrat Conference (IDC). Under their power-sharing agreement, the Republican and IDC leaders jointly decide what legislation comes to the floor.

A stunning number of New York State Senators have, in recent years, been charged with ethical violations. While both the Democratic conference and the IDC have proposed comprehensive campaign finance reform bills, the Republicans have thus far opposed any such efforts. Earlier this month, Republican Leader Dean Skelos actually called the proposals “a recipe for political corruption.”

Charlie Albanetti, communications director for Citizen Action of New York, told ThinkProgress, “The IDC made a commitment when they broke away that they’d use this opportunity to make sure progressive legislation is passed. The Assembly has passed legislation, it’s on the IDC and Republicans to do what the majority of New Yorkers indicated they want and they deserve.”

Justice

77 Percent of Los Angeles Voters Call For Overturning Citizens United

Photo by John Montgomery

Three-plus years after the U.S. Supreme Court’s corporate money in politics decision in Citizens United v. FEC, the movement to overturn some of its central holdings has not abated. On Tuesday, Los Angeles passed a ballot measure to endorse state and federal amendments overturning the decision, with an overwhelming 76.6 percent in favor of the resolution. The nation’s second-largest city now joins 400 other jurisdictions, including 175 cities and 13 states, in rejecting the notion that corporations are people, and the Supreme Court’s holding that corporate spending will not lead to corruption.

The Los Angeles measure calls on state legislators and regional members of Congress to both propose and support any amendments that would limit parts of both Citizens United v. FEC and an earlier decision striking down campaign finance limits, Buckley v. Valeo. The resolution, Proposition C, asserts that “corporations do not have the constitutional rights of human beings,” “corporations do not engage in constitutionally protected speech when spending corporate money to influence the electoral process,” and limits on political spending that ensure all Americans have an opportunity to be heard are permissible. Meanwhile, the U.S. Supreme Court is scheduled to hear another case that could make it even easier for the wealthy to buy elections.

Election

Virginia GOP Nominee’s PAC Used Donations On Himself, Overhead

Bishop E.W. Jackson (R)

Bishop E.W. Jackson (R)

In 2010, Bishop E.W. Jackson — the Virginia Republican nominee for Lt. Governor — created a political action committee designed to elect “conservative black candidates” in districts represented by members of the Congressional Black Caucus. But a ThinkProgress review of Jackson’s PAC filings reveals that it backed just one such candidate, while funneling thousands to Jackson himself.

Objecting to the way members of the all-Democratic Congressional Black Congress has been “conflating the black struggle for civil rights with the demands of radical homosexuals for marriage and other special rights,” Jackson announced the STAND America PAC in April, 2010. He vowed to “demand that representatives of the black community start respecting the values of the people who elect them,” noting that the PAC would make sure that happens.

Since its formation, the PAC has reported raising about $130,000, all from individual donors. Of this, just $2,750 went to conservative African American candidates — about two percent of total spending. $1,000 of that went to Michel Faulkner (R), who unsuccessfully challenged Rep. Charles Rangel (D-NY) in 2010. The remaining $1,750 went to Jackson’s own unsuccessful 2012 campaign for U.S. Senate in Virginia. The committee also made a $1,000 donation to the 2012 re-election campaign of House Republican Leader Eric Cantor (R-VA), who is white. While one solicitation asked for contributions to help defeat then-Attorney General Richard Blumenthal (D-CT) in his Senate campaign, the committee reported no contributions to his Republican opponent nor any apparent independent efforts in that race.

The vast majority of the PAC’s funds went to overhead — fundraising, strategic consulting, and overhead. More than $20,000 of the PAC’s spending, over 15 percent, was paid in “consulting – management” fees to Jackson himself. While using a PAC for personal inurement is not illegal, it is hardly the purpose for which the contributions are apparently solicited.

Other spending went to travel and meals (about $7,500), other consultants (more than $53,000), and bank fees (more than $700, including four account “overdraft” charges). The PAC also made donations to 912 First Landing Patriots and the Hampton Roads Tea Party (two Virginia Tea Party groups) and the Christian Coalition and Vision America (two Christian conservative organizations).

While new PACs do face significant upfront costs, the percentage spent on political activity is unusually low and the group appears to spending little on the group’s stated mission. Campaign finance expert Paul S. Ryan of the Campaign Legal Center frequently warns — when donating to political action committees it is really “donor beware.”

Neither STAND America PAC nor the Jackson for Lt. Governor campaign responded immediately to a request for comment.

Justice

How Real Disclosure Laws Could Help Fix The IRS Problem

The Internal Revenue Service is under fire from both parties for improperly targeting certain groups for additional scrutiny because their names included keywords such as “Tea Party” and “patriot.” But the challenge of addressing the skyrocketing numbers of “social welfare” groups registering for tax exempt status could be lessened by fixing the broken disclosure laws for political advertisers.

Since the Supreme Court’s controversial 5 to 4 ruling in the Citizens United v. FEC case in 2010, the IRS has seen a more than 100 percent increase in the number of groups applying for 501(c)(4) status — the section of the federal tax code that governs non-profit groups dedicated to social welfare — from 1,500 in 2010 to 3,400 in 2012.

Not all 501(c)(4) engage in political activity of any kind — the United States Chess Federation, for example, is a fairly apolitical group. Political 501(c)(4) groups are required to adhere to certain rules, including that they not be “primarily engaged” in electioneering activity. In a failed attempt to sort out which groups were apolitical and which needed additional scrutiny, the IRS reportedly tried a variety of ineffective screening methods, including flagging “patriot” groups as well as groups that focused on making “America a better place to live.”

As long as it is not their primary purpose, Citizens United allows (c)(4) groups to spend unlimited funds on “independent expenditure” ads aimed at swaying voters and the deadlocked Federal Election Commission allows these groups to avoid any disclosure of who bankrolls these advertisements. And since the 2002 law governing political advertisements came before the ruling, it does not adequately address the specific issue of disclosure for independent expenditure ads.

Because of this loophole, groups seeking to influence elections through campaign ads groups and to avoid having to make their donors public have often registered as (c)(4)s, rather than as super PACs (tax-exempt groups which can also raise and spend unlimited amounts on “independent expenditures,” but must make public all large donors). After bankrolling super PACs in the 2012 elections, mega-donors including millionaire investor Foster Friess and billionaire casino mogul Sheldon Adelson have vowed to keep future political spending secret, by giving to opaque 501(c)(4) committees instead. And good government groups have demanded the IRS investigate whether (c)(4)s like Crossroads GPS, the Commission on Growth, Hope and Opportunity, and the American Future Fund are really just super PACs in disguise.

The guidelines for what is and is not an acceptable level of political activity for a (c)(4) has never been clear — a vague “primary purpose” test — and has been little enforced. With limited staff and resources, even before massive furloughs forced by the sequester, the IRS has proved ill-equipped to monitor which (c)(4)s are really (c)(4)s and which ones are pretenders.

Congressional Republicans have thus far blocked efforts to require disclosure of political ad spending by (c)(4) groups. The proposed DISCLOSE Act and the Follow the Money Act would help bring parity to the disclosure rules goverrning independent campaign ads, without impeding on the legitimate activity of (c)(4)s. But if groups like Crossroads GPS were required to disclose the major donors behind their $70 million-plus campaign ad spending, there would be little incentive for them to masquerade as social welfare groups.

If Congress simply treated all spending on independent campaign advertisements uniformly — allowing voters to know who was really speaking and to evaluate the speech accordingly — the IRS would not have to use these clearly imperfect tests to decide what is and isn’t a legitimate 501(c)(4).

Note: ThinkProgress is a project of the Center for American Progress Action Fund (CAPAF), which has been recognized by the IRS as a 501(c)(4) organization. CAPAF does not endorse candidates, nor does it fund “independent expenditures” or any other kind of candidate-related advertising.

Update

Senate Majority Leader Harry Reid (D-NV) told reporters Tuesday that the IRS is not the agency best equipped to oversee political groups. “DISCLOSE would have taken the IRS out of the business of investigating these groups.” He noted that “not a single Republican voted for” the measure in the Senate, asking “where was the outrage from the Republicans then?” House Democratic Leader Nancy Pelosi made similar arguments Monday. Senate Minority Leader Mitch McConnell (R-KY) told reporters Tuesday that he continues to oppose the DISCLOSE Act, inaccurately claiming it was “designed to give the IRS even more power, directly, to silence the critics of this administration.”

Justice

IRS Targeted Tea Party Tax-Exempt Groups For Increased Scrutiny And Missed The Real Problem

The Internal Revenue Service (IRS) acknowledged Friday that it had improperly flagged groups applying for tax-exempt status for additional scrutiny if they contained common Tea Party keywords in their names. Rather than addressing the real problem of political committees masquerading as 501(c)(4) groups to evade public disclosure laws, this approach instead delayed the process for several groups purely on the basis of their names.

Lois Lerner, head of the IRS unit that oversees tax-exempt groups, noted that the number of 501(c)(4) group applications doubled between 2010 and 2012. As a result of this influx, she explained, low-level workers at the agency’s Cincinnati office had flagged about 300 applications for additional review based on a keyword search. None had their status revoked or denied and the IRS apologized for the mistake.

While it unclear whether the IRS workers intentionally targeted conservative groups — an agency spokesman did not immediately respond to a ThinkProgress request for the complete list of keywords used — the office revealed that two of the terms on the list were “Tea Party” and “patriot.” As such, about 75 Tea Party groups were singled out for additional scrutiny.

The spike in 501(c)(4) groups comes after the Supreme Court’s 2010 Citizens United v. FEC decision that outside groups may make unlimited political expenditures. Since then, some 501(c)(4) organizations have begun abusing the system. Though groups engaged in some political activity may qualify as “social welfare groups” and receive tax-exempt status under this section of the tax code, electioneering cannot be their predominant activity.

Karl Rove’s Crossroads GPS, for example, told the IRS that any political ads run by the group would be “limited in amount” and “would not constitute the group’s primary purpose.” Campaign finance reform advocates have argued that, in light of more than $70 million in “independent expenditure” ad spending, the group’s primary purpose is clearly campaign activity. But rather than register with the Federal Election Commission as a political committee, Crossroads GPS continues to claim that it is not such a group and need not publicly identify its funders.

Justice

Republican FEC Commissioners Say Keep Commission Broken

In a joint op/ed Wednesday, the three Republican members of the Federal Election Commission blasted campaign finance reformers and good-government groups for proposing changes to the impotent agency, defending themselves as “fair and impartial” regulators and administrators of campaign finance laws. But this same trio has been responsible for historic deadlock at the Commission and has openly refused to follow the campaign rules enacted by Congress.

FEC Commissioners Caroline Hunter, Donald McGahn II, and Matthew Petersen, all three of whom continue to serve though their terms have expired, wrote that “The agency’s harshest critics disregard the agency’s prime enforcement directive: Enforce the law as it is, not as some wish it to be.” They continue:

Ultimately, charges that the agency “does not enforce the law” ignore the legal parameters set by Congress that have been further limited by the courts. Failure to recognize these constraints would leave political participants at the mercy of unelected bureaucrats, an outcome both Congress and the courts have rejected.

Of course, thanks to these three, the Federal Election Commission has not followed the “legal parameters set by Congress.” Indeed in 2011, McGahn conceded “I’m not enforcing the law as Congress passed it… I plead guilty as charged.” Instead, he argued, he enforced the law based on his own interpretation of what the Supreme Court would want him to do. “In a close call, the tie goes to the speaker, not the regulator… The court has said certain [portions of McCain-Feingold] are unconstitutional.”

But rather than wait for the courts to rule on who should have to disclose the donors funding their electioneering communications, these Republicans instead simply chose to ignore the clear text of the 2002 campaign finance law and have allowed hundreds of outside group ads to be aired with no real disclosure as to who bankrolled the message.

And by waiting as much as five years to take action on obvious violations, they have ensured that campaigns can do virtually anything without fear of any meaningful penalty.

Former Common Cause President Scott Harshbarger once quipped that, ”This is probably the only agency in Washington that has done from the beginning exactly what it was intended to do, which was to do nothing.” But with an unprecedented number of deadlocked votes on even routine enforcement matters, Hunter, McGahn, and Petersen have managed to make historically weak campaign finance enforcement almost non-existent.

Justice

The Term Of Every Federal Election Commission Member Has Expired

The Federal Election Commission will reach an ignominious milestone at midnight Tuesday: every single one of its members’ terms will have expired. But thanks to a quirk in election law — and Washington gridlock — they continue to serve and deadlock on nearly every major issue.

Former Common Cause President Scott Harshbarger once quipped that, ”This is probably the only agency in Washington that has done from the beginning exactly what it was intended to do, which was to do nothing.” The Commission, by design, includes six members — no more than three from each major political party. While appointees are limited to a single, staggered six-year term, they are permitted to stay on indefinitely until they are replaced. No commissioner has been confirmed since the George W. Bush administration and one seat is currently vacant. Five of the six terms had expired by the end of April 2011 — though four of those five are still serving two years later (a fifth stayed on through February 1 of this year).

President Obama has, to date, nominated just one person to the commission. Though his nominee, SEIU Associate General Counsel John J. Sullivan, received unanimous committee support, his nomination was held up by Sen. John McCain (R-AZ) and then-Sen. Russ Feingold (D-WI) in a failed attempt to force more nominees. After a year of waiting, Sullivan withdrew his name from the process.

Last year, a “We the People” White House petition received more than 25,000 signatures demanding that the President nominate new commissioners to replace the anti-enforcement Republican incumbents before the November elections. The White House responded:

While the Administration doesn’t comment publicly about the President’s personnel decisions before he makes them, the Obama Administration is committed to nominating highly qualified individuals to lead the FEC. The agency, and the system of open and fair elections that the FEC is charged with protecting, deserve no less.

The three Republican appointees continue to block meaningful disclosure, deadlock against most enforcement, and ensure toothless enforcement — and will apparently continue to do so indefinitely.

Climate Progress

Dirty Energy Fuels Climate Change Denier Ken Cuccinelli’s Campaign

Virginia Attorney General Ken Cuccinelli (R)

Virginia Attorney General Ken Cuccinelli (R)

In the first quarter of 2013, Virginia Attorney General Ken Cuccinelli II (R) raised about $2.4 million for his gubernatorial campaign. Of that, a huge portion came from oil and gas interests — likely impressed by his long record of active climate denial.

A ThinkProgress review of data from the Virginia Public Access Project reveals that, by far, his largest donor in the period was the Republican Governors Association — a 527 political committee that works to aid Republican governors and gubernatorial candidates. While it is impossible to know the exact origin of the RGA’s $1 million contribution, the group receives a significant portion of its money from polluter interests.

In 2012, Koch Industries contributed more than $2 million, $800,000 from Devon Energy, and more than $639,000 from CONSOL Energy. According to a Center for Public Integrity investigation, oil and gas interests used the RGA to as a conduit for millions in donations in 2010, allowing them to circumvent campaign finance laws and invest heavily in electing candidates who supported fracking and other drilling expansion.

More directly, Cuccinelli accepted about $200,000 from energy companies and executives. These included:

1. Murray Energy Corporation, $50,000
2t. CONSOL Energy Inc., $25,000
2t. Dominion Political Action Committee (Dominion Resources, Inc.), $25,000
4t. Marvin Gilliam (retired VP of Cumberland Resources Corp.), $25,000
4t. Koch Industries Inc., $25,000
6t. American Electric Power Committee for Responsible Government (American Electric Power), $10,000
6t. William B. Holtzman (president and owner of Holtzman Oil), $10,000
6t. Range Resources Corporation, $10,000
9t. Thomas Farrell (CEO of Dominion Resources, Inc.), $5,000
9t. Michael G. Morris (President and CEO of American Electric Power), $5,000
9t. Baxter F. Phillips Jr. (an executive with Alpha Natural Resources, Inc.), $5,000
9t. Clyde E. Stacy (an executive with Pioneer Group/Rapoca Energy.), $5,000

Between these donations and the RGA’s funds, about half of Cuccinelli’s contributions over the reporting period were tied to oil, gas, and coal.

Their support is unsurprising given Cuccinelli’s record as Attorney General. As part of his efforts to cast doubt on climate-change science, he used his position to launch an inquisition against a former University of Virginia climate scientist. Citing possible “fraud against taxpayers,” Cuccinelli demanded the university provide him with a wide range of records relating Dr. Michael E. Mann’s grant applications.

A circuit judge and then the Virginia Supreme Court ruled that the Attorney General was incorrect in believing he had the legal authority to undertake such a fishing expedition. When he blasted the ruling, newspapers blasted him for wasting Virginia tax dollars. He also failed in his federal lawsuit challenging the Environmental Protection Agency’s power to regulate carbon dioxide as a greenhouse gas — a unanimous appeals court upheld the agency’s regulations as based on an “unambiguously correct” reading of the law.

Since his legal efforts for climate-change denial failed, he often relies on mockery, asking audiences to exhale carbon dioxide in unison, during his speeches, to annoy the EPA .

According to Greenpeace, he also worked with coal companies to roll back Virginia’s clean energy program. In the “energy” section of his campaign website, Cuccinelli says that we “need oil, natural gas, and coal to power our homes, cars, and economy and Virginia could be doing more to provide that to the world while growing job opportunities for our middle class.” To get that, he says, Virginia should safely take advantage of “all of the resources” it has on- and off-shore, “with as little government intervention as possible.”

Older

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up