Special Interests -WE HATES THEM
PACS AND SPECIAL INTERESTS
In a country split politically down the middle there is one thing nearly everyone can agree on; special interests are ruining American government. We may not all agree on exactly what constitutes a "special" interest, but most of us are savvy enough to know that they exist, that they wield political power, and that they don't represent the needs or opinions of the general public.
In American government today, there is only one surefire way to increase political power - spend money. A LOT of money. Special interests (at least the ones we should be concerned about) know this, and they use it to their absolute advantage. They are experts at two things: fundraising and lobbying. They know how to get their hands on money, and they use their considerable financial resources to throw their political weight around in order to influence politicians to establish policies that favor them. The result is the passing of laws that place the desires of a few over the needs of the many.
This is what campaign finance reform is all about. The campaign finance reform movement in America is generally motivated by an attempt to limit the political influence of special interest groups on public elections and public policy. Campaign finance reform uses two primary methods to accomplish this; (1) by limiting the amount of money that individuals and groups can donate to a particular campaign, and (2) by requiring political campaigns to disclose exactly who has donated how much money to them, making that information available to the public. So theoretically, voters can access that information to determine the degree to which a particular political act or candidate has been motivated or supported by special interests.
LIMITING AND DISCLOSING SPECIAL INTEREST MONEY...
Special interests, of course, are not big fans of campaign finance reform. It is their primary goal in life to find loopholes, ways to contribute massive amounts of money to individual campaigns in order to influence the outcomes of those campaigns. One of the ways they do this is by forming Political Action Committees, or PACs. A PAC is private group of persons, organizations, and/or corporations that work together to influence the outcome of elections. So when you see the word "PAC" in relation to elections, you should think "special interest money." (We have it on good authority that Pac Man is something completely different, so we apologize to those of you who accidentally ended up here because you were procrastinating by googling retro video games.)
The rules for PACs are different from the rules for individuals. An individual may contribute a maximum of only $1000 to a particular campaign. So in order to contribute more, special interest groups form PACs. Technically, any group that either receives contributions or spends over the amount of $1000 in order to influence the result of a federal election is considered a PAC.
In order to understand what's going on with campaign finance right now, we need a little history on the regulation of PACs. Under the Bipartisan Campaign Finance Reform Act of 2002 (a.k.a. the McCain-Feingold Act):
- The cap on the amount of money any PAC may contribute to any campaign per year was set at $5000.
- The cap on the amount of money any PAC may contribute to any political party was set at $15,000.
- The cap on the amount of money any PAC may contribute to another PAC was set at $5000.
- PACs were required to report all of their financial activities, including donations to specific campaigns, to the Federal Election Committee (FEC), which makes those reports available to the public.
- PACs could spend an unlimited amount of money on "independent expenditures" (think campaign commercials) as long as they did not coordinate the activities of those expenditures directly with the candidate's official campaign (which is why candidates add that annoying "I am ___ and I approved this message" to ads that originate within their own official campaigns)...
- ...However, those "independent expenditures" could only be funded by contributions made to that PAC, which were both limited and reported to the FCC as described above.
...UNTIL NOW
So those were the rules under which PACs operated...until 2010. Then along came Citizens United v. the FEC in which the Supreme Court voted 5-4 (as divisive as a ruling can be) that corporate funding of independent political broadcasts could not be limited, seeing it as an issue protected under First Amendment freedom of speech.
In theory, that all sounds great. In reality, the bottom dropped out of any effort to limit the political influence of PACs, and therefore of special interests. Several things changed as a result of the Citizens United ruling. Remember those "independent expenditures" that used to be both limited and publicly reported? Well, not any more. Corporations can now pay directly for those activities from their own treasuries, and there's no limit to how much money they can spend doing it. This was the birth of the "super PAC." Super PACs are officially known as "independent-expenditure only committees." They can raise unlimited sums of money from virtually anyone - corporations, organizations, unions, even wealthy individuals. Remember those 6 companies that run pretty much everything? Well, there's no longer any limit to how much money they can throw behind a particular campaign. But at least we the public know who's behind that money...right?
Wrong. Special interests are the kings of loopholes, and their super PACs have found themselves a doozy. Under federal law, non-profit corporations are not required to report the sources of their donations to the super PACs. So let's say you're a big corporation and you want to get one of your board members elected to congress. How do you fund his campaign? Easy. You establish a non-profit corporation (all you have to do is file a few papers with the court), you "donate" a colossal amount of your company's money to that non-profit, and the non-profit turns around and donates all of that money to a super Pac. Quick, easy, anonymous, and best (or worst) of all, anyone can do it. Just ask Stephen Colbert.
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