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Democrats are aghast at the amount of corporate spending they expect to be used against them in the 2010 elections, according to media reports. The US Chamber of Commerce (see September 20, 2010, September 30, 2010, and October 2010) projects that it will spend $75 million this year, over double its spending of $35 million in 2008, to oppose Democrats running for federal and state office. USCoC officials say that spending could go even higher. Other organizations, such as American Crossroads, a right-wing political group headed by former Bush political advisor Karl Rove (see September 20, 2010 and February 21, 2012), are on track to raise and spend tens of millions, again to fund political activities designed to prevent Democrats from being elected. A report circulating among Democratic Congressional leaders says that some $300 million has been raised for the 2010 campaign, all coming from 15 conservative tax-exempt organizations. Sheila Krumholz of the Center for Responsive Politics says: “A commitment of $300 million from just 15 organizations is a huge amount, putting them in record territory for groups on the right or left. With control of Congress hanging in the balance, this kind of spending could have a major impact.” Chris Van Hollen (D-MD), chairman of the Democratic Congressional Campaign Committee (DCCC), says the amount of corporate funding for Republican political activities is “raising the alarm bell.” The DCCC spent $177 million in all of 2008’s Congressional races. Labor unions and other groups allied with Democrats plan heavy spending of their own, but nothing to compare to conservative corporate funding. The Service Employees International Union (SEIU), for example, plans to spend $44 million on election-related spending this year. Political scientist Anthony J. Corrado Jr. says: “What we are seeing is that major businesses and industries are taking advantage of the recent court ruling and favorable political environment. They are already committing substantially more money than they have in any previous election cycles.” Corrado is referring to the controversial Citizens United Supreme Court decision (see January 21, 2010) that has overturned almost a century’s worth of campaign spending limitations. USCoC officials also point to a 2007 Supreme Court ruling that overturned the ban on political issue advertising by corporations and labor unions close to an election (see June 25, 2007). The Los Angeles Times reports that the heavy corporate fundraising for Republican political interests is driven largely by corporate opposition to the Democrats’ focus on health care reform, and a bill passed in July that established stricter government monitoring and regulation of the financial system. Roger Nicholson of the International Coal Group, a mining company, recently wrote to fellow executives urging them to contribute money to defeat the “fiercely anti-coal Democrats” in Washington, specifically targeting a number of Democrats in Kentucky and West Virginia. Five of the largest health insurers, including Aetna, Cigna, and United HealthCare, are banding together to create and fund a new nonprofit group to help influence elections. The group has not yet been formed, but reports say that it will spend some $20 million to defeat Democrats. [Los Angeles Times, 8/2/2010]

Entity Tags: Karl C. Rove, Anthony J. Corrado Jr., American Crossroads, Aetna, Chris Van Hollen, International Coal Group, Service Employees International Union, US Supreme Court, Los Angeles Times, Roger Nicholson, UnitedHealth Group, Cigna, US Chamber of Commerce, Sheila Krumholz

Timeline Tags: Civil Liberties, 2010 Elections

Liberal New York Times columnist Frank Rich writes an op-ed focusing on the billionaire Koch brothers (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, and October 4, 2011), the oil magnates who are the driving force behind the tea party movement. Rich writes that “even those carrying the Kochs’ banner may not know who these brothers are.” Rich, using information from historian Kim Phillips-Fein’s book Invisible Hands, notes that the Kochs are the latest in a long line of behind-the-scenes corporate manipulators “who have financed the far right (see September 2010 and August 17, 2011) ever since the du Pont brothers spawned the American Liberty League in 1934 to bring down” the Roosevelt administration (see August 23, 1934 and After). “You can draw a straight line from the Liberty League’s crusade against the New Deal ‘socialism’ of Social Security, the Securities and Exchange Commission, and child labor laws to the John Birch Society-Barry Goldwater assault on [the Kennedy administration] and Medicare (see 1962 and November 1963) to the Koch-Murdoch-backed juggernaut against our ‘socialist’ president,” Rich writes. “Only the fat cats change—not their methods and not their pet bugaboos (taxes, corporate regulation, organized labor, and government ‘handouts’ to the poor, unemployed, ill, and elderly). Even the sources of their fortunes remain fairly constant. Koch Industries began with oil in the 1930s and now also spews an array of industrial products, from Dixie cups to Lycra, not unlike DuPont’s portfolio of paint and plastics. Sometimes the biological DNA persists as well. The Koch brothers’ father, Fred (see 1940 and After), was among the select group chosen to serve on the Birch Society’s top governing body. In a recorded 1963 speech that survives in a University of Michigan archive, he can be heard warning of ‘a takeover’ of America in which Communists would ‘infiltrate the highest offices of government in the US until the president is a Communist, unknown to the rest of us.’ That rant could be delivered as is at any tea party rally today.” Rich also focuses on FreedomWorks (see 1984 and After, May 16, 2008, February 16-17, 2009, February 19, 2009 and After, February 27, 2009, March 13, 2009 and After, April 2009 and After, April 14, 2009, April 15, 2009, June 26, 2009, Late July, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 14, 2009, August 19, 2009, August 24, 2010, September 2010, September 12, 2010 and August 17, 2011), one of the two “major sponsor[s]” of the tea party movement, along with Americans for Prosperity (AFP—see Late 2004, October 2008, January 2009 and After, February 16, 2009, February 16-17, 2009, February 17, 2009, February 19, 2009 and After, April 2009 and After, April 8, 2009, May 29, 2009, July 23, 2009, July 27, 2009, August 5, 2009, August 6, 2009, August 6, 2009, August 10, 2009, August 14, 2009, October 2, 2009, November 2009, February 15, 2010, April 15, 2010, July 3-4, 2010, August 24, 2010, August 30, 2010, September 20, 2010 and August 17, 2011). Both FreedomWorks and AFP are heavily funded by the Koch brothers. Rich writes: “Tea partiers may share the Kochs’ detestation of taxes, big government, and [President] Obama. But there’s a difference between mainstream conservatism and a fringe agenda that tilts completely toward big business, whether on Wall Street or in the Gulf of Mexico, while dismantling fundamental government safety nets designed to protect the unemployed, public health, workplace safety, and the subsistence of the elderly.” Rich writes that the Koch brothers’ agenda is “inexorably… morphing into the GOP agenda,” and points to Republican luminaries such as incoming House Speaker John Boehner (R-MO) and tea party candidates such as Rand Paul (see March 27, 2010, May 17, 2010, October 25, 2010 and After, October 26, 2010 and November 10, 2010), Sharron Angle (see January 2010, Mid-May, 2010, Mid-June 2010, June 16, 2010 and September 18, 2010), and Joe Miller (see July 19, 2010, July 23, 2010, October 17, 2010, October 17, 2010 and October 18, 2010). “The Koch brothers must be laughing all the way to the bank knowing that working Americans are aiding and abetting their selfish interests,” Rich concludes. [New York Times, 8/28/2010]

Entity Tags: Rand Paul, Koch Industries, Sharron Angle, Joseph Wayne (“Joe”) Miller, Kim Phillips-Fein, John Birch Society, Barack Obama, Americans for Prosperity, American Liberty League, Charles Koch, John Boehner, David Koch, Fred Koch, FreedomWorks, Frank Rich

Timeline Tags: Domestic Propaganda

Charles and David Koch.Charles and David Koch. [Source: PRWatch (.org)]The New Yorker publishes a lengthy analysis of the Koch (pronounced “coke”) financial empire, and its long-time financial support for right-wing causes (see 1981-2010). The article, written by investigative reporter Jane Mayer, shows that Koch Industries, led by brothers David and Charles Koch, has donated over $250 million to Republican and conservative politicians and organizations since the mid-1990s. The Koch brothers are also well-known philanthropists, having given millions to New York City’s Metropolitan Opera, $100 million to the Lincoln Center’s New York State Theatre building, $40 million to the Sloan-Kettering Cancer Center, $20 million to the American Museum of Natural History, and $10 million to the Metropolitan Museum of Art.
Second-Largest Private Industry in US - Koch Industries, a $100 billion conglomerate, garners most of its profits from oil refineries and associated interests; it owns the firms that manufacture Brawny paper towels, Dixie cups, Georgia-Pacific lumber and paper products, Stainmaster carpet, and Lycra fabric. Koch Industries is the second largest private company in the US after Cargill, and taken together, the Koch brothers’ fortune of some $35 billion places them just behind Microsoft’s Bill Gates and Wall Street financier Warren Buffett as the nation’s richest people.
Longtime Libertarians - Personally, the Koch brothers espouse a libertarian philosophy—drastic reductions in corporate and personal taxes, huge cuts in government expenditures on social services, and widespread deregulation of industry, particularly environmental. Koch Industries was recently listed in the top 10 of US air polluters, and has for years funded organizations that oppose climate change, giving even more than ExxonMobil to organizations, foundations, and think tanks that work to derail or overturn climate change legislation. Koch funds so many different organizations that oppose various initiatives of the Obama administration that Washington insiders call the Koch ideological network the “Kochtopus.” While the Koch brothers have protested being characterized as major supporters of the right-wing agenda—David Koch has complained that the “radical press” is intent on making him and his brother into “whipping boys”—Charles Lewis, the founder of the Center for Public Integrity, says: “The Kochs are on a whole different level. There’s no one else who has spent this much money. The sheer dimension of it is what sets them apart. They have a pattern of lawbreaking, political manipulation, and obfuscation. I’ve been in Washington since Watergate, and I’ve never seen anything like it. They are the Standard Oil of our times.” The Kochs have embraced the pure free-market ideology of economist Friedrich von Hayek, who argued that any form of centralized government would lead to totalitarianism and that only complete, unregulated capitalism could ensure freedom. Many “tea party” supporters, such as Fox News host Glenn Beck, have openly embraced von Hayek’s ideals.
Inculcated Ideals of Anti-Communist Father - Both brothers are steeped in the anti-Communist, anti-government, minority-disparaging views of their father, Koch Industries co-founder Fred Koch (see 1940 and After).
Using the 'Tea Parties' - Conservative economist Bruce Bartlett, who has worked at a Koch-funded think tank, says that the Kochs are playing on the anti-government fervor of the “tea parties” to further their pro-business, libertarian agenda. “The problem with the whole libertarian movement is that it’s been all chiefs and no Indians,” Bartlett says. “There haven’t been any actual people, like voters, who give a crap about it. So the problem for the Kochs has been trying to create a movement.” With the emergence of the “tea parties,” Bartlett says, “everyone suddenly sees that for the first time there are Indians out there—people who can provide real ideological power. [The Kochs are] trying to shape and control and channel the populist uprising into their own policies.” A Republican campaign consultant who has worked for the Kochs says of the tea party movement: “The Koch brothers gave the money that founded it. It’s like they put the seeds in the ground. Then the rainstorm comes, and the frogs come out of the mud—and they’re our candidates!” The consultant says that the Kochs keep an extremely low profile, in part to avoid accusations that they are funding an “astroturf” movement (see April 15, 2009). A former Koch adviser says: “They’re smart. This right-wing, redneck stuff works for them. They see this as a way to get things done without getting dirty themselves.” Democratic political strategist Rob Stein, who has studied the conservative movement’s finances, says the Kochs are “at the epicenter of the anti-Obama movement. But it’s not just about Obama. They would have done the same to Hillary Clinton. They did the same with Bill Clinton. They are out to destroy progressivism.” Since a 2009 rally attended by David Koch (see November 2009), the brothers have all but explicitly endorsed the tea party movement, with David Koch praising it for demonstrating the “powerful visceral hostility in the body politic against the massive increase in government power, the massive efforts to socialize this country.” Echoing the sentiments of many tea party leaders, Charles Koch said in a newsletter sent out to Koch Industry employees that President Obama is comparable to Venezuelan strongman Hugo Chavez.
Strategy - Charles Koch told a reporter that “[t]o bring about social change” requires “a strategy” that is “vertically and horizontally integrated,” spanning “from idea creation to policy development to education to grassroots organizations to lobbying to litigation to political action.… We have a radical philosophy.” The Kochs launched their first “think tank,” the libertarian Cato Institute, in 1977 (see 1977-Present), which has been effective in promoting corporate tax cuts, deregulation, cuts in social spending, and in opposing governmental initiatives to combat climate change. Other Koch-funded institutes such as the Heritage Foundation and the Independent Women’s Forum have also publicly opposed efforts to combat climate change. History professor Naomi Oreskes, the author of a book, Merchants of Doubt, that chronicles attempts by American industries to manipulate public opinion on science, says that the Kochs have a vested interest in keeping the government from addressing climate change. “If the answer is to phase out fossil fuels,” she says, “a different group of people are going to be making money, so we shouldn’t be surprised that they’re fighting tooth and nail.” David Koch has said that though he doesn’t believe that any global warming effects have been caused by human activities, if indeed the globe is warming, it will benefit society by lengthening growing seasons in the Northern Hemisphere. Several years after founding Cato, the Kochs provided millions in funding to the Mercatus Center at George Mason University in Arlington, Virginia, which Stein describes as “ground zero for deregulation policy in Washington.” Mercatus is headed by Richard Fink, a Koch Industries lobbyist and president of several Koch-funded foundations. Mayer describes Fink as the chief political lieutenant of the Koch brothers. Mercatus was quite successful at having the Bush administration adopt a number of its deregulatory strategies, particularly environmental deregulation. Like Cato, critics of Mercatus accuse it of serving the brothers’ corporate needs while hiding behind the facade of a nonpartisan academic organization. “Ideas don’t happen on their own,” says Matt Kibbe, the president of FreedomWorks, a tea party advocacy group heavily funded by the Kochs (see April 14, 2009). “Throughout history, ideas need patrons.” FreedomWorks is one of many citizen activism groups founded and/or funded by the Kochs, usually masquerading as “grassroots” organizations started by “ordinary citizens” (see 1984 and After, 1997, and Late 2004).
Disrupting the Obama Administration - Since well before the 2008 presidential election, the Koch brothers have been involved in full-throated efforts to derail any policies or initiatives that would be launched by a Democratic president. In January 2008, Charles Koch wrote in the industry newsletter that America was on the verge of “the greatest loss of liberty and prosperity since the 1930s.” The Kochs have used their “astroturf” advocacy group, Americans for Prosperity (AFP), to great effect against the Obama administration, launching its efforts even before the November 2008 election (see October 2008 and January 2009 and After). Conservative activist Grover Norquist says that AFP’s August 2009 anti-health care rallies were instrumental in undermining Obama’s policy initiatives. Norquist says the rallies “discouraged deal-makers,” Republicans who otherwise might have considered cooperating with Obama and Congressional Democrats, and affected corporate donors to Washington lobbyists, steering millions into the hands of Republican lobbyists. [New Yorker, 8/30/2010]

Entity Tags: Matt Kibbe, Koch Industries, Naomi Oreskes, Richard Fink, Obama administration, New Yorker, Rob Stein, Jane Mayer, Independent Women’s Forum, Mercatus Center, Heritage Foundation, Cato Institute, Center for Public Integrity, Bruce Bartlett, Americans for Prosperity, Barack Obama, Charles Koch, Hillary Clinton, David Koch, FreedomWorks, Friedrich von Hayek, Charles Lewis, Glenn Beck, Grover Norquist, Fred Koch

Timeline Tags: Domestic Propaganda

Research from the media analysis firm Borrell Associates and other sources shows that spending for the 2010 midterm elections will outstrip the record-breaking spending of the 2008 elections, which centered around a presidential contest. The controversial Citizens United Supreme Court decision (see January 21, 2010) has “opened the floodgates” for corporate money to be used in electioneering and advertising, much of that money going anonymously to political parties and operations. It is unprecedented for midterm elections to involve more spending than presidential-year elections. Kip Cassino, vice president of research at Borrell Associates, says the Citizens United decision is directly responsible for the massive upswing in spending. “Unlike a lot of industries in the United States right now, which are seeing some downturns, political spending is absolutely a growth industry,” Cassino says. Corporate money is behind the surge, accounting for what he says is at least a 10 percent jump in advertising. Evan Tracey, president of the Campaign Media Analysis Group, says: “The unwritten charter of these [anonymously funded political] groups is to really be disruptive and try to go in there and turn a race on its head—or put a candidate on the defense. And by that nature, most of those ads that they’re gonna run this fall are gonna be negative ads.” Labor unions account for some of the surge in spending, but most of it comes from corporate donors, from conservative organizations such as the US Chamber of Commerce (see September 20, 2010, September 30, 2010, and October 2010), Americans for Prosperity (AFP—see Late 2004, May 29, 2009, November 2009, and July 3-4, 2010), and American Crossroads, a nonprofit political group headed by former Bush political advisor Karl Rove (see September 20, 2010, February 21, 2012, Late March 2012, and Late May 2012). Senator Robert Menendez (D-NJ) says, “While each of our campaigns has the resources they need to be competitive, we now face shadow groups putting their thumbs on the scale with undisclosed, unlimited, and unregulated donations.” However, national groups are not all of the important players in the spending surge. Tracey says: “We have a lot of little individual state-type groups that are starting to show up in some of the bigger races. And I think they’re going to play a much larger role in the fall.” One group cited in the research is a Nevada-based group called Americans for New Leadership, which has targeted Senate Majority Leader Harry Reid (D-NV) for defeat in a barrage of advertisements aired recently throughout the state. The group says it has spent $300,000 in ads attacking Reid and is prepared to spend more, but has not disclosed from whom that money comes. Senate and House races are seeing more involvement by heavily-funded groups placing ads in local markets for Republican candidates, or attacking Democrats, particularly from AFP, which has already spent some $1.5 million on House races. Craig Holman of the watchdog group Public Citizen says: “In 2004 and 2006, literally 100 percent of the groups were fully complying with the disclosure laws. Today, most groups do not disclose where they’re getting their money from.” The New York Times reports, “The situation raises the possibility that a relatively small cadre of deep-pocketed donors, unknown to the general public, is shaping the battle for Congress in the early going.” Sheila Krumholz of the Center for Responsive Politics observes: “Corporate interests are buying the elections? Oh no, it’s much worse than that. We don’t know who’s buying the election.” [New York Times, 9/13/2010; National Public Radio, 9/16/2010; Think Progress, 9/17/2010]

Entity Tags: Evan Tracey, Americans for New Leadership, American Crossroads, Americans for Prosperity, Craig Holman, Robert Menendez, Borrell Associates, US Chamber of Commerce, Kip Cassino, Karl C. Rove, Sheila Krumholz, Harry Reid

Timeline Tags: Civil Liberties, 2010 Elections

The Tea Party Patriots (TPP—see August 24, 2010), one of the most influential of national “umbrella” tea party organizations, announces the receipt of a $1 million donation for get-out-the-vote (GOTV) efforts. The TPP refuses to disclose the name of the donor. Two thousand eight hundred local tea party groups are eligible for money from the grant, and the TPP says it will distribute all of the monies by October 4. TPP’s Mark Meckler says: “This particular fund is intended to be applied for and spent by the [November midterm] election. The people who get the grants are required to spend them by election day.” TPP policy advisor Ernie Istook, a former Republican congressman, calls the donation “fertilizer for the grassroots.” Istook continues: “If you have a lawn, you water it, you tend to it, you weed it. That’s what’s happening here. And it is unique. I can’t think of anything quite like it happening before.” The TPP has said it will not endorse particular candidates for office, unlike another “umbrella” tea party organization, Tea Party Express and that group’s affiliated PAC. TPP official Jenny Beth Martin says the money is not to be used to endorse or attack individual candidates. Instead, she says: “What we’re doing is what our 2,800 local groups on the ground have been asking us to do. We’re not taking advantage of a loophole. What we’re making sure is that we support the local organizers on the ground.” Meckler adds, “We want to make sure people are out there voting for fiscal responsibility.” However, as the elections approach, tea party groups begin speculating where exactly the money is going. The TPP consistently refuses to disclose what groups receive money, or how much is disbursed. Dee Park of the Moore Tea Citizens in Moore County, North Carolina, is one who wonders about the money. “We wrote what we thought was a terrific proposal, but they didn’t fund it,” she says. No one from the TPP has contacted Park to inform her that her proposal was turned down. Appeals from other tea party groups asking for information about the money disbursement have been ignored—though the TPP regularly sends out appeals for more donations. Rhode Island tea party organizer Marina Peterson is in a similar position to Park; she submits a proposal for five groups in her area, but never hears anything from the TPP. Asked by a reporter if she knows who is receiving grants, she replies, “Wouldn’t we all like to know?” She says she was concerned from the outset about the anonymous nature of the donation, telling the reporter: “How do we know we want to take that money if we don’t know who the person is? What if it was [liberal billionaire] George Soros?” (see January - November 2004) Peterson says that every political organization, including the TPP and local tea parties, should be upfront and transparent about their funding. She recalls asking Meckler via email about the grant, and says that “[h]e went completely on the defensive when I asked him about it.” Meckler later tells Peterson that the TPP would not release information about the grant recipients to “shield” them from any controversy associated with the donation. Two groups do admit to receiving donations. The Chico Tea Party in California received $5,000, which it says it is spending on buying advertising on highway billboards. And the Nevada County, California, Tea Party Patriots received $10,000, which it says it is spending on billboards and newspaper ads. The Nevada County organization is headed by Stan Meckler, Mark Meckler’s father. The Chico organization says 12 groups in California have received money, though it does not disclose their names. Arizona tea partiers say they have used grant money to buy radio and billboard ads, but refuse to disclose amounts. And the TPP’s Florida coordinator Everett Wilkinson says his South Florida Tea Party received funding, but refuses to disclose an amount. Reporter Stephanie Mencimer writes: “This scuffle over the secret donation is symbolic of the internal conflict within the tea party movement. There are tea party activists who believe the movement’s rhetoric about transparency and accountability. But the movement also includes leaders and others who are willing to engage in and tolerate the funny-money games of business-as-usual politics. With the elections likely to enhance the political clout of the tea party movement, this tension between principles and practices is likely to intensify. After all, can tea partiers really claim they are ‘we the people’ when they are being subsidized by secret millionaires and guided by leaders who refuse to be accountable to those very people?” [Slate, 9/21/2010; Mother Jones, 11/1/2010] The donation is later shown to come from Republican financier Raymon F. Thompson, a former CEO who has provided Meckler and Martin with a luxurious private jet which they are using to fly around the country (see October 28, 2010).

Entity Tags: George Soros, Everett Wilkinson, Dee Park, Chico Tea Party, Stephanie Mencimer, Stan Meckler, Tea Party Patriots, Ernest Istook, Mark Meckler, Marina Peterson, Jenny Beth Martin, South Florida Tea Party, Raymon F. Thompson, Nevada County, California Tea Party Patriots

Timeline Tags: Civil Liberties

The reclusive but highly influential Charles Koch, of the Koch brothers oil empire (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, and August 30, 2010), pens an 18-page memo inviting some 210 wealthy American corporate and political leaders to a meeting with him and his brother David at the exclusive Rancho Las Palmas resort in Rancho Mirage, California, in January 2011. The theme is how to “combat… the multitude of public policies that threaten to destroy America as we know it… it is up to us to combat what is now the greatest assault on American freedom and prosperity in our lifetimes.… We must stop—and reverse—this internal assault on our founding principles.” The meeting will help plan how to use the prospective Republican gains in the November 2010 elections to “foster a renewal of American free enterprise and prosperity.” The memo references a June 2010 meeting in Aspen, Colorado, where strategies to manipulate and influence the 2010 elections were codified (see June 26-28, 2010). “In response, participants committed to an unprecedented level of support,” Koch writes. He includes the program from the June 2010 meeting. [Think Progress, 8/23/2010; Koch, 9/24/2010 pdf file]

Entity Tags: Rancho Las Palmas, David Koch, Charles Koch

Timeline Tags: Civil Liberties

Fred Wertheimer of Democracy 21, an organization devoted to stricter campaign finance reform, writes an impassioned op-ed about the deleterious effects of unchecked corporate money pouring into elections as a result of the Citizens United decision (see January 21, 2010). Wertheimer is also angry about the success of recent Republican efforts to block passage of the DISCLOSE Act, which would have required some accountability for corporate and union donors (see July 26-27, 2010). Wertheimer begins by tracing how drastically the landscape of campaign finance has changed: In 2000, when Congress passed legislation restricting the ability of so-called “527” groups to affect federal elections, the laws passed with heavy bipartisan support (see 2000 - 2005 and June 30, 2000). Only six Republican senators, including current Senate Minority Leader Mitch McConnell (R-KY), voted against the legislation. Last week, when the Senate voted down the latest iteration of the DISCLOSE Act, McConnell led the Republican efforts against the bill, and all 38 GOP senators voted against it. (The latest version of the DISCLOSE Act failed to reach the Senate floor, as Democrats were unable to break a Republican filibuster against the bill.) Wertheimer writes, “Senate Republicans went from 89 percent support for campaign finance disclosure in 2000 to 100 percent opposition to campaign finance disclosure in 2010.” Wertheimer goes on to write: “Ten years after Congress passed campaign finance disclosure for 527 groups by overwhelming bipartisan votes, the campaign finance disclosure issue hasn’t changed nor has the national consensus in the country in favor of disclosure; the votes of Senate Republicans, however, have changed. In 2000, Senator McConnell was a lonely Senate Republican voice against campaign finance disclosure. In 2010, Senator McConnell had 38 Republican Senators voting in lockstep with him to block campaign finance disclosure and to deny citizens information they have a basic right to know.” [Huffington Post, 9/28/2010]

Entity Tags: Fred Wertheimer, Mitch McConnell, DISCLOSE Act of 2010

Timeline Tags: Civil Liberties

US-Bahrain Business Council logo.US-Bahrain Business Council logo. [Source: US-Bahrain Business Council]The US Chamber of Commerce (USCC), in a methodology made legal by the Citizens United Supreme Court decision (see January 21, 2010), uses foreign-generated funds to disseminate “attack ads” against Democrats running for office in the November midterm elections. The USCC has targeted, among others, Jack Conway (D-KY), Senator Barbara Boxer (D-CA), Governor Jerry Brown (G-CA), and Representatives Joe Sestak (D-PA) and Tom Perriello (D-VA). The USCC, a private trade association organized as a 501(c)(6) that can raise and spend unlimited funds without disclosing any of its donors, has promised to spend $75 million to prevent Democrats from winning in the upcoming elections. The USCC has, as of September 15, aired over 8,000 television ads supporting Republican candidates and attacking Democrats, according to information from the Wesleyan Media Project. The USCC has far outspent any other public or private group, including political parties. The funds for the USCC’s efforts come from its general account, which solicits foreign funding. Legal experts say that the USCC is likely skirting campaign finance law that prohibits monies from foreign corporations being spent in American elections. The USCC has been very active in recent years in raising funds from overseas sources, with such funds either going directly to the USCC or being funneled to the USCC through its foreign chapters, known as Business Councils or “AmChams.” Some of the largest donations come from the oil-rich country of Bahrain, generated by the USCC’s internal fundraising department in that nation called the “US-Bahrain Business Council” (USBBC). The USBBC is an office of the USCC and not a separate entity. The USBBC raises well over $100,000 a year from foreign businesses, funds shuttled directly to the USCC. A similar operation exists in India through the auspices of the USCC’s US-India Business Council (USIBC). The USIBC raises well over $200,000 a year for the USCC. Other such organizations exist in Egypt, Russia, China, Saudi Arabia, Brazil, and other countries, with those nations’ laws making it difficult or impossible for the public to learn how much money is being raised and by which foreign entities. Multinational firms such as BP, Shell Oil, and Siemens are also active members of the USCC, and contribute heavily to the organization. If those firms’ monies are going to fund political activities, the Citizens United decision makes it legal to keep that fact, and the amount of money being used to fund those political activities, entirely secret. It is known that the health insurer Aetna secretly donated $20 million to the USCC to try to defeat the Affordable Care Act (ACA) last year, and News Corporation, the parent of Fox News, donated $1 million to the USCC to use in political activities (see September 30, 2010). The USCC is a strong opponent of Democrats’ efforts to persuade American businesses to hire locally rather than outsourcing jobs to countries such as China and India, and has fought Democrats who oppose free trade deals that would significantly benefit foreign entities. The USCC claims that it “has a system in place” to prevent foreign funding for its “political activities,” but refuses to give any details. [Think Progress, 10/5/2010]

Entity Tags: Joe Sestak, British Petroleum, Barbara Boxer, Aetna, Jack Conway, US-India Business Council, Wesleyan Media Project, US Chamber of Commerce, News Corporation, Royal Dutch/Shell, US-Bahrain Business Council, Siemens, Thomas Perriello, Edmund Gerald (“Jerry”) Brown, Jr

Timeline Tags: Civil Liberties

American Future Fund logo.American Future Fund logo. [Source: American Future Fund / Talking Points Memo]Three citizen watchdog and pro-campaign finance groups, the Center for Media and Democracy, Protect Our Elections, and Public Citizen, allege that the tax-exempt nonprofit group American Future Fund (AFF) is violating tax law by operating primarily as a political advocacy group. AFF was founded and is operated by Nick Ryan, a former campaign advisor for former Senator Rick Santorum (R-PA) and former Representative Jim Nussle (R-IA), and the head of a political consulting firm, the Concordia Group. Ryan also founded a pro-Santorum “super PAC” called the Red, White and Blue Fund. State Senator Sandra Greiner (R-IA) and prominent Iowa Republican Allison Dorr Kleis serve as the organization’s directors. The group states that it advocates for “conservative and free market ideals.” The New York Times will later confirm that Bruce Rastetter, co-founder and CEO of Hawkeye Energy Holdings, a large ethanol company, provided the seed money for AFF in 2008. Investigations by the Center for Public Integrity will also show that the Pharmaceutical Research and Manufacturers of America (PhRMA) contributed $300,000 to the organization in 2010. The group also received $2.44 million from another 501(c)4 group, the American Justice Partnership, which advocates for “tort reform,” and over $11 million from the Center to Protect Patients’ Rights, another 501(c)(4) organization. The Times will find that AFF-supported candidates win 76 percent of the time, making the group “one of the most effective outside spending groups of the 2010 election cycle.” The law allows 501(c)4 groups (see 2000 - 2005) such as AFF to operate without taxation or legal scrutiny as long as they spend the bulk of their resources on “further[ing] the common good and general welfare of the people of the community” and not political advocacy. Moreover, federal election law provides that if a group’s major purpose is electioneering and it spends at least $1,000 to influence elections, it must register as a political action committee (PAC). A New York Times analysis recently showed that AFF spent 56 percent of its television budget on political advertising, and so far has spent $8.8 million on television ad buys. Its ads attack Democratic candidates in Indiana, Iowa, New Mexico, and West Virginia, and expressly tell voters to cast their ballots against these candidates. And the organization’s Web site says it exists to “target… liberal politicians.” The group says it plans to spend as much as $25 million on the 2010 elections. In a press release, Public Citizen says that AFF, “a conservative nonprofit group pouring money into the 2010 midterm elections, appears to be violating campaign finance law.” The three groups file a complaint with the Federal Election Commission (FEC) asking it to decide whether AFF has violated the tax code. If so, AFF would be forced to re-register as a PAC and be subjected to more disclosure requirements, particular who donates to the organization and how much they donate. Craig Holman of Public Citizen says: “American Future Fund is pulling out the stops to ensure that Republicans are elected this November. That imposes on the group the legal duty to register with the FEC and disclose exactly who is funding all those expenditures.” Protect Our Elections spokesperson Kevin Zeese says: “In this first post-Citizens United (see January 21, 2010) election, corporations and their executives are testing the limits of the law and crossing over into illegality. They cross the line when they use nonprofit groups to urge people to vote ‘for’ or ‘against’ a specific candidate. Political committees violate the law when they accept anonymous contributions for their work. These violations of federal election and tax laws need to be challenged now; otherwise we will see even more anonymous corporate donations trying to illegally manipulate voters into voting against their own interests in future elections.” And Lisa Graves of the Center for Media and Democracy says: “Groups spending millions to attack Americans running for office should not be able to use their tax-free status to hide the truth about which fat cats are behind their ads. Voters have a right to know which corporations or millionaires are laundering their profits through nonprofits like the American Future Fund, whose main business seems to be electioneering. We have joined this complaint to demand that the law be enforced and the truth be told.” [Center for Media and Democracy, Protect Our Elections, and Public Citizen, 10/12/2010 pdf file; Public Citizen, 10/20/2010; Mother Jones, 1/28/2011; iWatch News, 6/21/2012] AFF will continue to operate as a 501(c)4 group in spite of the FEC complaint, and will continue to spend heavily on anti-Democratic ads, many of which will be proven to be false by organizations such as FactCheck (.org). More complaints will be filed against the organization, including a February 2011 IRS complaint by Citizens for Responsibility and Ethics in Washington (CREW). [iWatch News, 6/21/2012]

Entity Tags: Center to Protect Patients’ Rights, Red, White and Blue Fund, Center for Public Integrity, Bruce Rastetter, American Justice Partnership, American Future Fund, Allison Dorr Kleis, Public Citizen, Protect Our Elections, Sandra Greiner, Nick Ryan, Federal Election Commission, Kevin Zeese, Craig Holman, Citizens for Responsibility and Ethics in Washington, Concordia Group, Center for Media and Democracy, Pharmaceutical Research and Manufacturers of America, New York Times, Lisa Graves

Timeline Tags: Civil Liberties

A conservative super PAC, American Action Network (AAN), launches a $19 million advertizing blitz against Democrats in 22 House districts. AAN was founded by former US Senator Norm Coleman (R-MN) and former Nixon administration official Fred Malek. AAN has already pumped $5 million into races featuring Republican Senate candidates. Founded in February, the group was formed, according to Malek, to “counter what the labor unions are doing on the Democratic side.” The group is split into two parts: the Action Forum, a 501(c)(3), which allows donations to be tax-deductible but limits political activities, and the Action Network, a 501 (c)(4), in which contributions are not deductible or disclosed but the group can advocate for political causes. AAN president Rob Collins says: “This Democrat-controlled Congress has already voted for higher taxes and promises next month to raise taxes on America’s families and businesses. This is simply unacceptable and something we wanted to call attention to.” AAN is part of a larger network of conservative super PACs (see March 26, 2010), including American Crossroads, that plans to spend as much as $50 million on Congressional races. AAN shares office space with American Crossroads. [Politico, 10/13/2010; New York Times, 10/17/2010; CT Mirror, 10/17/2010]
Objectionable Ads - The AAN ads airing in Connecticut draw fire after accusing Democrats Christopher Murray (D-CT) and Jim Himes (D-CT) of voting to provide free health care to illegal immigrants and Viagra to sex offenders. Murray accuses AAN of being linked to a number of Republicans in the Bush administration, and asks who is providing the money for the ads. Campaign finance law allows the donors to organizations such as AAN to remain anonymous. “This is one of the biggest TV buys this district has ever seen,” Murphy says. “And what we deserve to know is who is standing behind it. I want to know. I think that’s what the voters want as well.… These ads on TV right now, fronted by a shadowy, anonymous group of billionaire donors and multi-national corporations are a clear sign of what the difference is in this election.” An AAN spokesman refuses to discuss the finances behind the organization, saying only: “What we do is we comply with the letter of the law. That’s all we have to offer about that.” Murray calls the ad’s allegations “laughable.” Both claims have been debunked by independent fact-checking organizations, though Murray’s opponent Sam Caligiuri (R-CT) says the ad’s content is “verifiable,” and says even if the ad is questionable, Murray has told lies of his own about Caligiuri.
AAN Co-Founder Involved in Criminal Activities as Nixon Administration Official - CT Mirror notes that Malek, a Wall Street millionaire and the co-founder of AAN, was not only a member of the Nixon administration (whose crimes and excesses concerning the Watergate scandal led to a round of campaign finance reforms—see 1974 and May 11, 1976), but was also involved in a recent investment scandal. The New York Times goes further in its examination of Malek, noting that he was heavily involved in the 1972 “Townhouse operation” that raised illegal corporate cash in so-called “slush funds” and distributed the monies in key Senate races (see December 1, 1969, Early 1970, March 23, 1971, and August 18, 1974). Malek, the White House personnel chief in 1972, helped dispense illegal patronage deals to Nixon donors and served as deputy director of CREEP (the Committee to Re-Elect the President), an organization heavily involved in criminal activities. And the liberal news Web site Think Progress notes that Malek was the Nixon administration’s unofficial “Jew counter” (see July 3, 1971 and September 1971) and was part of the administration’s illegal persecution of Jews who worked in the federal government. During the Watergate investigation, Malek admitted that some of CREEP’s activities might have “bordered on the unethical.” Malek worked with American Crossroads co-founder Karl Rove during the Nixon administration, when Rove worked to re-elect Nixon as the executive director of the College Republican National Committee. Malek is a member of the Weaver Terrace Group, an informal amalgamation of Republican strategists from “independent” groups who regularly meet, trade political intelligence, and make joint fund-raising trips. The group is named after the street where Rove used to live. Former Watergate prosecutor Roger Witten says: “It creates all the appearances of dirty dealings and undue influence because our candidates are awash in funds the public is ignorant about. This is the problem that was supposedly addressed after Watergate.” [New York Times, 10/17/2010; Think Progress, 10/18/2010]

Entity Tags: Jim Himes, Christopher Murray, CT Mirror, American Crossroads, American Action Network, Fred Malek, Weaver Terrace Group, Sam Caligiuri, Committee to Re-elect the President, Think Progress (.org), Nixon administration, Rob Collins, Norm Coleman, Roger Witten, Karl C. Rove, New York Times

Timeline Tags: Civil Liberties

Campaign spending by outside “independent” organizations on Congressional races currently stands at $147.5 million, a 73 percent rise from two years ago, according to information from the nonpartisan Campaign Finance Institute (CFI). In mid-October 2008, Congressional election spending by outside groups was at $85.3 million. In 2006, that number was $32 million. The spending dramatically favors Republicans, with groups supporting GOP candidates spending $105.5 million and groups supporting Democrats spending $42 million. According to the press, the huge spike in spending is traceable to the Citizens United decision that allows corporations and labor unions to spend unlimited funds in campaign activities (see January 21, 2010). The CFI notes that the record-breaking spending “is before the traditionally heavy-spending final weeks of the campaign.” [McClatchy News, 10/18/2010]

Entity Tags: Campaign Finance Institute

Timeline Tags: Civil Liberties, 2010 Elections

Impelled by polls showing that Democrats may not do as badly as predicted in the upcoming November midterm elections, Republican political organizations pour vast amounts of money into tight Senate and House races in the final days, according to a Reuters analysis of data provided by the Wesleyan Media Project and from Democratic organizers. The controversial Citizens United Supreme Court decision (see January 21, 2010) has “opened the floodgates” for corporate money to be used in electioneering and advertising, much of that money going anonymously to political parties and operations (see September 13-16, 2010 and October 2010). Much of the money is targeting three Senate races in Colorado, Kentucky, and California. Republicans are confident that they will gain control of the House of Representatives, but must gain 10 seats to control the Senate, a prospect that is not as likely. Last-minute spending surges are common in elections, but experts say they have never seen so much spending in the last days of a race. Pollster Andrew Kohut of the Pew Research Center is not sure the last-minute surge of spending, almost all of which is going to advertising, will have a major effect. Most voters’ minds are made up by now, Kohut says. Data shows that organizations affiliated with Republicans have outspent their Democratic rivals by more than a 3-1 ratio. In Nevada, “independent” organizations are pouring money into attack ads against Senator Harry Reid (D-NV) and in support of challenger Sharron Angle (R-NV). Late campaign spending is fairly equal, according to the data, and the polls for that race are very tight. In Colorado, “tea party” favorite Ken Buck (R-CO) is losing ground to incumbent Michael Bennet (D-CO), and in response, Republican groups have funneled money into ads supporting Buck and attacking Bennet to create a 2-1 spending ratio in favor of Buck. A similar instance exists in Kentucky, where another tea party favorite, Rand Paul (R-KY), is losing ground to Jack Conway (D-KY), and Republican spending on Paul’s behalf has made for a 2-1 spending ratio in favor of Paul. In California, where popular Democrat Barbara Boxer (D-CA) once had a 2-1 spending advantage over her opponent Carly Fiorina (R-CA), pro-Fiorina groups have recently outspent pro-Boxer groups 5-1. In Pennsylvania, pro-Republican groups are heavily outspending Democrats, largely to support Republican favorite Pat Toomey (R-PA) over Joe Sestak (D-PA). In Delaware, Senate candidate Christine O’Donnell (R-DE), whose campaign has raised large amounts of money from out-of-state financiers, has not received the lavish funding that her Republican colleagues have gotten to defeat her opponent Chris Coons (D-DE). O’Donnell has received some $300,000 from right-wing and tea party groups. But Coons is receiving virtually no support from independent pro-Democratic groups, possibly because polls indicate he will win the election and does not need the last-minute funding support. The elections will be held on November 2. [Reuters, 10/27/2010] The results of the massive spending are mixed. The Republican winners include Paul and Toomey. The Republican losers include Angle, Buck, Fiorina and O’Donnell. [National Public Radio, 11/3/2010]

Entity Tags: Christine O’Donnell, Chris Coons, Wesleyan Media Project, Barbara Boxer, Andrew Kohut, Sharron Angle, Reuters, US House of Representatives, Carly Fiorina, Joe Sestak, Jack Conway, Harry Reid, Rand Paul, Pat Toomey, Ken Buck, Michael Bennet

Timeline Tags: Civil Liberties

In light of a flood of recent media advertisements attacking Democratic candidates paid for by corporate donations, and recent media stories revealing that the US Chamber of Commerce may be using foreign monies to pay for political attack ads against candidates it opposes (see October 2010), AFL-CIO president Richard Trumka says he now believes the country would have been better off if Congress had managed to pass the DISCLOSE Act, a bill that would have forced the disclosure of the identities of corporate and union donors for campaign purposes (see July 26-27, 2010). Trumka and his labor union organization did not support the DISCLOSE Act when it was up for consideration, and Democrats were unable to break a Republican filibuster of the bill in the Senate. “That’d be good for the system, I think,” Trumka tells reporters. “Because the system is awash—there’s more money in the system than there was oil in the Gulf, quite frankly. [Trumka is referring to the recent catastrophic spill of crude oil in the Gulf of Mexico by BP, a multinational oil corporation.] It’s from people that you don’t know. You eventually find out I guess, but it’s this mysterious money coming in and targeting at three, four, five times what either of the candidates are doing.” Trumka says that the union organization never opposed disclosure as an objective: “What we did was say if you’re going to do it, make sure it applies to everybody—that we were being totally disadvantaged while other people weren’t being disadvantaged.” However, three weeks ago, Trumka released a statement saying that the AFL-CIO “must reluctantly oppose [the DISCLOSE Act] because it would impose extraordinarily costly and impractical new record-keeping and reporting obligations on thousands of labor and other non-profit membership organizations with regard to routine inter-affiliate payments that bear little or no connection with public communications about federal elections.” AFL-CIO political director Karen Ackerman says: “What’s heartbreaking is there’s an imbalance here. So there’s not an equal playing field with the amount of money that corporate America has to protect their own interests, and protect their tax breaks, and protect their trade deals, and protect their profit-making… there are not comparable institutions or interests—moneyed-interests—on the side that represents working people.” [TPMDC, 10/12/2010]

Entity Tags: Karen Ackerman, AFL-CIO, DISCLOSE Act of 2010, US Chamber of Commerce, Richard Trumka

Timeline Tags: Civil Liberties

In an interview with PBS’s Judy Woodruff, Haley Barbour, the chairman of the Republican Governors Association (RGA), falsely claims that Democrats are outspending Republicans in the midterm election campaigns. The elections are tomorrow, November 2. Barbour agrees with projections that Republicans will do very well in tomorrow’s elections, probably taking back control of the US House and perhaps the US Senate as well. Barbour predicts a stronger sweep than the 1994 elections, which put Republicans in control of both houses of Congress, motivated by Americans’ “anger and even fear” at what he calls “the lurch to the left given us by [Democratic House Speaker Nancy] Pelosi and [President Barack] Obama.” Barbour goes on to claim that one difference between 1994 and 2010 is that “this year, we got outspent pretty heavily. The labor unions saw this coming early, and they have poured money in to try to save Democrat seats. And it hasn’t been any secret to the news media or the Democratic incumbents that this was going to be a hard year for them because the president’s policies are unpopular.” Woodruff does not challenge Barbour’s claims. [PBS, 11/1/2010] In reality, Republican and Republican-supporting organizations have outspent Democrats and their supporters by a 3-1 ratio (see September 13-16, 2010, October 2010, and Around October 27, 2010). Data from the nonpartisan Center for Responsive Politics shows that while the Democratic Party does outspend the Republican Party in the 2010 elections, pro-GOP outside groups have vastly outspent labor unions and other organizations supporting Democrats. The four biggest outside groups spending money on the elections—the US Chamber of Commerce, the American Action Network (see Mid-October 2010), American Crossroads, and Crossroads GPS—all spend their money on behalf of Republicans. Together those four groups spend $99.6 million, far more than the $28.1 million spent on behalf of Democrats by the two largest labor unions. American Crossroads and Crossroads GPS intend to continue spending money to attack Obama and the Democrats even after the election. “It’s a bigger prize in 2012, and that’s changing the White House,” says American Crossroads chairman Robert Duncan. “We’ve planted the flag for permanence, and we believe that we will play a major role for 2012.” American Crossroads and other such groups, on both Republican and Democratic sides, intend to continue fundraising in the wake of the midterm elections and begin campaigning almost immediately for the 2012 presidential elections. Privately, some Democratic strategists say they are not sure how they will answer the challenge posed by Republican-supporting “independent” groups and the huge amounts of cash they raise from wealthy corporate donors. Obama’s senior political advisor David Axelrod says that special interests “have driven a huge truck filled with undisclosed cash through a legal loophole to try and buy this election… is it any surprise that this same, stealthy crowd will try to move on to the White House next? Whatever the outcome Tuesday, this issue is not going away.” [New York Times, 10/31/2010; Washington Independent, 11/1/2010; Think Progress, 11/2/2010]

Entity Tags: David Axelrod, American Crossroads, American Action Network, Center for Responsive Politics, US Chamber of Commerce, Robert Duncan, Democratic Party, Haley Barbour, American Crossroads GPS, Republican Party, Judy Woodruff

Timeline Tags: Civil Liberties

A group of Democratic donors, shaken from the defeat the party suffered in the November midterm elections, meets in a Washington hotel to discuss how to counter the huge influx of corporate spending that helped defeat dozens of Democrats and give control of the US House of Representatives back to Republicans. Outside conservative groups such as the US Chamber of Commerce, the American Action Network (see Mid-October 2010), and American Crossroads/Crossroads GPS outspent Democratic groups by more than a two to one ratio. The donors are split on whether to try to emulate their opponents by raising as much money as possible from wealthy corporations and donors, or continuing down their traditional path of funding their campaign efforts via labor unions and organizations such as the Sierra Club. If they decide to pursue corporate cash, some argue, they will be viewed as hypocrites in light of Democrats’ almost-uniform opposition to the 2010 Citizens United decision, which “opened the floodgates” for unlimited corporate and labor donations (see January 21, 2010). One of the fundamental problems, Democrats note, is that while unions are allowed to contribute unlimited funds just as corporations do, unions, which traditionally support Democrats, are far less wealthy than their corporate counterparts. And despite record-breaking fundraising by the Obama presidential campaign in 2008, most corporations donate to Republicans. The donors are not expected to come up with simple answers as they begin to strategize for 2012, where Republicans are expected to raise and spend an unprecedented half-billion dollars trying to defeat President Obama. Moreover, the White House has sent decidedly mixed messages on the subject. During the 2008 race, the Obama campaign instructed an independent progressive “527” PAC, the Fund for America, to shut down its operations after it began releasing attack ads against Obama’s opponent, Senator John McCain (R-AZ). The Obama campaign did not want independent organizations conducting their own operations, but wanted full control of the campaign message. And campaign leaders said they wanted to win with small individual contributions from ordinary citizens, not with massive corporate donations. The White House’s opposition to such outside funding continued through 2010, and as a result, corporate donations to Democratic-supporting groups were far outstripped by Republican donations. Since then, Obama’s top political advisor David Axelrod has indicated the White House would support liberal donors’ independent efforts to counter Republican political donations, but many Democratic donors still believe the Obama administration is not fully behind those efforts. A Democratic strategist who refuses to be identified says: “By and large, the political people in the Obama firmament really have disdain for outside groups. They think they whine and snivel and make all these demands and don’t produce very much.” Some liberal donors and organizations are ignoring the resistance from the White House and making their own plans, such as David Brock, the founder of Media Matters for America (MMFA), who is considering forming his own 527 (see 2000 - 2005) for 2012. Another Democratic activist, Joan Fitz-Gerald of the umbrella group America Votes, says Democrats cannot depend on the courts or Congress to rein in corporate spending, noting that Congressional Democrats failed to get the DISCLOSE Act, a campaign finance reform measure, to the floor of the Senate for a vote (see July 26-27, 2010). Fitz-Gerald says Democrats must adapt to the new political landscape or risk another trouncing in 2012. However, she recommends working through existing progressive organizations more than using hastily formed PACs and 527s funded by one or two wealthy sources. Unions and environmental groups have large, citizen-based funding sources, whereas Republican organizations are often funded by a small group of wealthy donors who bankroll numerous such organizations. Those organizations, she says, lack credibility with voters. The traditional grassroots-based organizations, she says, “are trusted messengers, whether they’re a union that someone belongs to or a group that people have been a member of for many years. At some point the American people, as they see these ads pushing this right-wing agenda, they’re going to ask: ‘Who are these people? What’s the goal of American Crossroads?’” But the funding garnered by the right made the difference in the 2010 elections, Democratic donors agree. Mike Palamuso of the League of Conservation Voters recalls, “For every $500,000 we spent, it felt like American Crossroads spent another $5 million.” Many agree with Democratic political strategist Harold Ickes, who says: “Is small money better? You bet. But we’re in a f_cking fight. And if you’re in a fistfight, then you’re in a fistfight, and you use all legal means available.” [Mother Jones, 11/15/2010]

Entity Tags: David Brock, American Action Network, America Votes, American Crossroads, David Axelrod, US House of Representatives, Sierra Club, Harold Ickes, Joan Fitz-Gerald, US Chamber of Commerce, American Crossroads GPS, Mike Palamuso, Obama administration

Timeline Tags: Civil Liberties

Tim Phillips (L) and David Koch, together at an Americans for Prosperity event.Tim Phillips (L) and David Koch, together at an Americans for Prosperity event. [Source: Americans for Prosperity]Oil billionaire and conservative activist David Koch (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, and September 24, 2010) attends the 112th Congress’s swearing-in ceremony, accompanied by Tim Phillips, the head of the Koch-financed Americans for Prosperity (AFP—see May 29, 2009) and a number of current and former Koch Industries lobbyists, including Nancy Pfotenhauer. The event marks the ascendance of Republicans to the majority of the House, and the selection of John Boehner (R-OH) as speaker of the House. After the ceremony, Koch asks Frank Guinta (R-NH), a freshman Republican and “tea party” member elected in part by lavish AFP spending on his behalf, if he will attend a party that Koch is throwing for Republican Congressional members. Guinta affirms that he will attend. Lee Fang, a reporter for Think Progress who observes the Koch-Guinta conversation, speaks to Koch after the two conclude their discussion. Fang identifies himself as a Think Progress reporter and asks Koch what he expects from the Boehner-led Congress; Koch replies, “Well, cut the hell out of spending, balance the budget, reduce regulations, and, uh, support business.” Phillips immediately intervenes, identifying Fang to Koch as “a good blogger on the left, we’re glad to have him—” but Fang continues interviewing Koch. During the relatively brief interview, Phillips repeatedly attempts to push Fang’s cameraman Scott Keyes away from Koch, and shouts into Keyes’s camera, in an apparent attempt to disrupt the interview. However, Koch is cooperative with being interviewed. Koch is apparently proud of the work being done by AFP and says, “We’re going to do more too in the next couple of years.” Fang asks Koch if he is proud of the tea party movement, and Koch replies: “Yeah. There are some extremists there, but the rank and file are just normal people like us. And I admire them. It’s probably the best grassroots uprising since 1776 in my opinion.” Koch is hesitant to answer questions about “climate change,” agreeing only that “[c]limate does fluctuate,” but refusing to answer questions about the effect of carbon pollution on the climate. Instead, he says that any attempts to regulate carbon emissions will “really damage the economy.” Fang concludes by asking about the Citizens United decision that allows unlimited corporate spending on elections (see January 21, 2010). According to Fang, Koch looks uncomfortable discussing the subject and is quite reticent. Koch refuses to answer when Fang asks him about a recent meeting he sponsored with former Fox News talk show host Glenn Beck “and several other conservatives” (see June 26-28, 2010). While Phillips continues to interrupt and chide Fang for asking about the Citizens United decision, Koch refuses to answer Fang’s question, “Could you tell the public what you discussed at that meeting?” [Think Progress, 1/5/2011; Think Progress, 1/6/2011; Think Progress, 1/7/2011; Think Progress, 1/10/2011]

Entity Tags: Koch Industries, David Koch, Americans for Prosperity, Frank Guinta, John Boehner, Scott Keyes, Glenn Beck, Tim Phillips, Nancy Pfotenhauer, Lee Fang

Timeline Tags: Civil Liberties

Ahmed Khalfan Ghailani at arraignment in New York, June 9th, 2009.Ahmed Khalfan Ghailani at arraignment in New York, June 9th, 2009. [Source: Reuters / Christine Cornell]Ahmed Khalfan Ghailani is sentenced to life in prison for his role in the 1998 bombings of two US embassies in Africa (see 10:35-10:39 a.m., August 7, 1998). US District Judge Lewis Kaplan imposes the maximum sentence. In November 2010, Ghailani was convicted of conspiracy to destroy buildings or property of the United States. The verdict included a special finding that his conduct caused at least one death. But this was only one of the 285 charges against him, and he was acquitted of 273 counts of murder or attempted murder. Ghailani was captured in Pakistan in 2004 (see July 25-29, 2004), kept in the CIA’s secret prison system, and then was held in the US prison in Guantanamo, Cuba, starting in late 2006 (see September 2-3, 2006). He was transferred to the mainland of the US in 2009. He was the first former Guantanamo prison to be tried in a US civilian court, and his trial has been widely seen as a test case on whether other prisoners held outside the US legal system should be tried in US courts. Critics argue that Ghailani’s verdict shows the other prisoners still in Guantanamo should be tried in military tribunals there. But others point to the verdict as an example of the fairness of the US justice system. Prosecutors had been seeking life in prison for Ghailani, and that is the sentence he ultimately receives, even though he is only convicted of one count. His defense lawyers didn’t try to argue that Ghailani had no role in the embassy bombings, but instead argued that he was duped by other people and didn’t really know what he was doing. [Christian Science Monitor, 1/25/2011]

Entity Tags: Ahmed Khalfan Ghailani

Timeline Tags: Complete 911 Timeline

The progressive magazine Mother Jones reports on Congressional Democrats’ plans to curb the effects of the Supreme Court’s Citizen United decision, which allows unlimited contributions to campaign organizations by corporate and union donors (see January 21, 2010). Last year, Senate Republicans refused to allow a campaign finance reform bill, the DISCLOSE Act, to come to the floor for a vote (see July 26-27, 2010). Now Democratic leaders say they are considering filing challenges to the nonprofit tax statuses of many of the groups that were so influential in the 2010 elections. Representative Chris Van Hollen (D-MD) tells a Mother Jones reporter about the plan. According to Van Hollen, two of the groups they plan to target are Karl Rove’s Crossroads GPS and the American Action Network (AAN—see Mid-October 2010), headed by former Senator Norm Coleman (R-MN). Together, the two groups spent over $43 million supporting conservative candidates and targeting Democrats, accounting for some 23 percent of all outside conservative spending between them. According to Van Hollen, “People are looking at different legal strategies through the courts because there’s emerging evidence that these groups have abused the rules.” Representative David Price (D-NC) agrees. “I think there are ample goals for challenging the way those groups have acted,” he says. Crossroads GPS spokesperson Jonathan Collegio says in return, “Van Hollen is irresponsibly making claims on zero evidence whatsoever and this is extremely irresponsible for an elected official holding high office.” No one from AAN is willing to respond to the Mother Jones reporting. Both Crossroads GPS and AAN, like many other such groups, are organized under the IRS’s 501(c)4 tax status—tax-exempt, not-for-profit groups whose purpose under the IRS code is “primarily to further the common good and general welfare of the people of the community” (see 2000 - 2005). The law allows such groups to engage in political advocacy, such as running ads for or against candidates, but such “electioneering” activities must not be those groups’ “primary activity.” As far as is known, Crossroads GPS and AAN have no other purpose except electioneering. 501(c) groups do not have to register as political action committees (PACs) and are allowed to conduct their business with very little outside scrutiny. However, if the Federal Election Commission or the IRS determine a group has violated the rules, that group would be forced to register as a PAC and disclose the sources of its funding. If the Democrats challenge the status of these groups, they would be following in the footsteps of private organizations. A coalition of public advocacy groups has filed complaints against Crossroads GPS and another 501(c)4 group, American Future Fund (AFF—see October 12, 2010), claiming that their primary functions are, according to the Crossroads GPS complaint, to “influence the 2010 federal elections and to elect Republicans to office.” The complaints are still pending. In September 2010, Senator Max Baucus (D-MT) asked the IRS to examine several 501(c) groups to “ensure that political campaign activity” wasn’t their primary activity (see September 28, 2010). [Mother Jones, 1/28/2011]

Entity Tags: David E. Price, American Crossroads GPS, American Action Network, American Future Fund, DISCLOSE Act of 2010, Max Baucus, Norm Coleman, Jonathan Collegio, Karl C. Rove, Chris Van Hollen, Mother Jones, US Congress

Timeline Tags: Civil Liberties

An image from a ‘Team Themis’ proposal given to the US Chamber of Commerce in late 2010.An image from a ‘Team Themis’ proposal given to the US Chamber of Commerce in late 2010. [Source: Docstoc (.com)]The liberal news Web site Think Progress, an affiliate of the Center for American Progress, reports that it has discovered evidence of a potentially illegal scheme to entrap and destabilize political organizations, including Think Progress, that support President Obama and other Democrats. The scheme, in development since November 2010 at least, centers around the US Chamber of Commerce (USCOC), a large trade organization that makes large secret donations to Republican candidates and organizations (see January 21-22, 2010 and October 2010), and a law firm, Hunton and Williams, hired by the USCOC. According to emails secured by Think Progress, Hunton and Williams is working with a set of private security firms—HBGary Federal, Palantir, and Berico Technologies (collectively called “Team Themis”)—to develop tactics to damage progressive groups and labor unions. Some of the organizations and unions targeted include Think Progress, a labor coalition called Change to Win, the Service Employees International Union (SEIU), US Chamber Watch, and StopTheChamber.com. The last two are small organizations dedicated to exposing some of the secretive practices of the USCOC. One project proposed by Team Themis is an entrapment scheme. The proposal called for the creation of a “false document, perhaps highlighting periodical financial information,” to give to a progressive group opposing the USCOC, and then exposing the document as a fraud, thus undermining the credibility of the organization. Another proposal involved using potentially illegal computer-hacking techniques to create what the group calls a “fake insider persona” to “generate communications” with Change to Win and to undermine the credibility of US Chamber Watch. The proposal actually advocates the creation of two such personas, one to be used “as leverage to discredit the other while confirming the identity of the second.” Together, “Team Themis” asked for $200,000 for initial background research and another $2 million for an active disinformation campaign. It is unclear from the emails whether any of the proposals were accepted, and if the disinformation campaign was ever launched. Think Progress was recently provided with the emails by members of “Anonymous,” an online “hacktivist” community responsible for attacking the Web sites of oppressive regimes in Tunisia and Egypt, along with American corporations that have censored the online information repository WikiLeaks. The emails were secured from HBGary Federal after one of that firm’s executives, Aaron Barr, tried to take Anonymous down. Barr claimed to have penetrated the group and intended to sell the data he collected to Bank of America (BoA) and to US federal authorities. In return, Anonymous hackers penetrated Barr’s email account and published some 40,000 company emails. Barr intended to approach Bank of America, Think Progress writes, because WikiLeaks is believed to have sensitive information about the firm that it intends to publish later in the year. BoA hired Hunton and Williams and other law firms to pursue WikiLeaks. BoA’s legal team also targeted Salon columnist Glenn Greenwald, an outspoken supporter of WikiLeaks, saying that it had plans for “actions to sabotage or discredit” him. The USCOC posts a response to Think Progress on its blog dismissing the report as “baseless attacks.” And prominent liberal blogger Marcy Wheeler (see April 18, 2009) says that the Think Progress report will probably “cause the Chamber of Commerce to rethink the spying work with HBGary it apparently has been considering.” [Berico Technologies, 11/3/2010 pdf file; Think Progress, 2/10/2011] Liberal blogger Brad Friedman, who has spent years covering voter suppression tactics by political organizations, will soon learn that he is targeted by Team Themis. An email sent by Barr and provided to Friedman “focused on me included names, personal information, home addresses, etc. of myself, family members, and a number of other members of VR,” Friedman will write. (Velvet Revolution is an “umbrella group” that includes StopTheChamber.) “Part of the plan included highlighting me as a ‘Tier 1’ player in a sophisticated disinformation/discrediting scheme that relied on high-tech tools developed for the US government’s ‘War on Terror.’ Team Themis’ US Chamber of Commerce plan was to deploy the very same techniques and technology used to track terrorists, terror organizations, and nations such as Iran, against private non-profit political advocates and citizens in the US.” The email also lists the names of people whom Barr clearly believes to be Friedman’s wife and two children (Friedman says the names listed are not family members—he is not married and has no children). The email also lists a Maryland address as Friedman’s home—another error, as Friedman lives in another state. Friedman will write that obviously Barr and his researchers found another, unrelated person named Brad Friedman and learned personal details about that person and his family. Prominent officials such as Ilyse Hogue of MoveOn.org and Robert Weissman of Public Citizen are also listed for “targeting.” [Brad Friedman, 2/14/2011]

Entity Tags: Democratic Party, Change to Win, WikiLeaks, Berico Technologies, Barack Obama, Bank of America, Aaron Barr, US Chamber Watch, Think Progress (.org), US Chamber of Commerce, Service Employees International Union, Ilyse Hogue, Marcy Wheeler, Hunton and Williams, Glenn Greenwald, HBGary Federal, StopTheChamber.com, Robert Weissman, Palantir, Brad Friedman

Timeline Tags: Civil Liberties

The government watchdog and campaign finance advocacy group Common Cause asks the Supreme Court to explain why Justice Clarence Thomas did not completely disclose the nature of his participation in a 2008 retreat hosted by Charles and David Koch, the influential oil billionaires and conservative advocates (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, and October 4, 2011). According to a Court spokesperson, Thomas made a “brief drop-by” at a four-day event in Palm Springs, California, held in January 2008, and gave a talk. But disclosure reports filed by Thomas show that he was reimbursed an undisclosed amount for four days of “transportation, meals, and accommodations” over the weekend of the retreat. The reimbursement came from the Federalist Society, an influential conservative legal group. Today Common Cause sends a letter to the Court asking for “further clarification” as to why the two statements are at odds. Common Cause official Arn Pearson says, “I don’t think the explanation they’ve given is credible.” If Thomas’s visit was a “four-day, all-expenses paid trip in sunny Palm Springs,” Thomas should have reported it as a gift under federal law. The Court, the Federalist Society, and Koch Industries all refuse to comment on the issue. Common Cause has said that because of Thomas’s past appearances at the Koch retreats, and the conservative political work done by his wife Virginia Thomas (see November 2009 - November 2010 and February 4, 2011), he should have recused himself from the 2010 Citizens United decision (see January 21, 2010). Common Cause notes that both Thomas and Justice Antonin Scalia have appeared at Koch-hosted retreats. Both Thomas and Scalia voted as part of the 5-4 majority that decided the case. Political analysts say the Koch brothers have been some of the main beneficiaries of the decision. [New York Times, 2/14/2011]

Entity Tags: David Koch, Antonin Scalia, Arn Pearson, Charles Koch, Federalist Society, US Supreme Court, Virginia (“Ginni”) Thomas, Common Cause, Clarence Thomas

Timeline Tags: Civil Liberties

The press learns that the Obama administration is considering having President Obama (see January 27-29, 2010) issue an executive order that would force federal contractors to disclose donations over $5,000 to political organizations. Such firms seeking government contracts would be required to disclose contributions to groups that air political ads either attacking or supporting candidates. Both Republicans and Democrats say that if issued, the order would have an immediate effect. Groups such as the US Chamber of Commerce (USCOC), a large Republican donor that has made large undisclosed donations to Republican-supporting candidates and organizations (see January 21-22, 2010 and October 2010), attacks the White House over the considered executive order, saying it proves Obama is using his executive power to punish political adversaries and reward supporters. USCOC spokesperson Blair Latoff calls the proposed order “an affront to the separation of powers [and] to free speech” (see January 21, 2010) that would create a litmus test for companies wanting to work with the federal government. The order, Latoff adds, could mean “prospective contractors that fund political causes unpopular with the government or the current administration may find that they don’t get a contract award due to political discrimination.” Republican senators will raise the same concerns in a letter sent to the White House the next day. Lawyer Jan Baran, who has worked for both the USCOC and Republican interests, acknowledges that the order could curtail fundraising attempts for the 2012 elections. White House officials and Congressional Democrats say the order would prevent the 2012 elections from being taken over by wealthy anonymous donors on both sides of the political aisle. Fred Wertheimer of Democracy 21, a nonprofit group that favors stricter campaign finance rules, says, “The fact that Congressional Republicans may oppose disclosure does not mean that efforts to obtain it are, by definition, partisan.” [United Press International, 4/20/2011; Los Angeles Times, 4/21/2011; New York Times, 4/27/2011] A week later, Bruce Josten, the top lobbyist for the USCOC, will assail Obama and the White House over the proposed executive order, telling a reporter that the organization “is not going to tolerate” what it considers a “backdoor attempt” by the White House to silence private-sector opponents by disclosing their political spending. Josten will even indirectly compare Obama to Libyan leader Mu’ammar al-Qadhafi; citing the Obama administration’s efforts to hasten the deposing of al-Qadhafi, Josten will say of the order: “We will fight it through all available means. To quote what they say every day on Libya, all options are on the table.” White House spokesman Jay Carney will say in response to Josten’s attack, “What the president is committed to is transparency, and he certainly thinks that the American taxpayer should know where his or her money is going.” Josten is joined by the Business Roundtable, a powerful business association made up of a number of chief executives, which will call the proposed order “yet another example of regulatory over-reach,” and will claim the order would increase paperwork and drive up costs for businesses. [Think Progress, 4/27/2011] Lee Fang, a reporter for the liberal news Web site Think Progress, will write that the executive order could have a powerful impact on the USCOC. “[T]he White House’s disclosure rule threatens the entire existence of the Chamber,” Fang will write. “This is because the Chamber only exists to hide the identity of corporations seeking to fight nasty political battles without having their name or brand exposed. As the Wall Street Journal noted, the Chamber’s ‘most striking innovation has been to offer individual companies and industries the chance to use the chamber as a means of anonymously pursuing their own political ends.’ The Chamber’s members include defense contractors, bailed out banks, and other donors likely to be affected by the government contractor campaign disclosure rule.” Fang will also cite a recent plan by the USCOC to sabotage organizations that support Obama and Democratic candidates by using legally questionable tactics such as false entrapment strategies and even computer hacking (see February 10, 2011). The funding for the scheme was never made public. He also cites recent monies secured by the USCOC from foreign entities that, because of the Citizen United decision, could be flowing into US political activities without disclosure (see October 2010). [Think Progress, 4/27/2011] Republicans in Congress will move to pass legislation that would thwart the order, if it is ever issued (see May 26, 2011 and July 15, 2011).

Entity Tags: Barack Obama, Fred Wertheimer, Blair Latoff, Business Roundtable, Jan Witold Baran, US Chamber of Commerce, Lee Fang, Wall Street Journal, Mu’ammar al-Qadhafi, Obama administration, Bruce Josten

Timeline Tags: Civil Liberties

Chris Van Hollen, in an undated appearance on Fox News.Chris Van Hollen, in an undated appearance on Fox News. [Source: Associated Press / Politico]Representative Chris Van Hollen (D-MD) and other prominent Democrats file a lawsuit against the Federal Election Commission (FEC) asking that entity to force the disclosure of political campaign donor information. In 2007, after a Supreme Court ruling (see June 25, 2007), the FEC drastically rewrote its disclosure requirements, creating what Van Hollen calls a “major loophole” that many 501(c)4 entities funded by corporate or labor union donations are using to operate “under a veil of anonymity.” Van Hollen and his colleagues say they want to force wealthy corporations and individuals to disclose who they are and how much they donate to political organizations. Currently, the Citizens United decision (see January 21, 2010) allows such donors to remain anonymous, and the organizations that receive their donations to conceal the amounts they are receiving. Van Hollen cites the 2002 Bipartisan Candidate Reform Act (BCRA—see March 27, 2002) as applying in this instance. In the brief he submits for the lawsuit, Van Hollen writes: “The US Chamber of Commerce, a Section 501(c) corporation, spent $32.9 million in electioneering communications in the 2010 Congressional elections, and disclosed none of its contributors; American Action Network (AAN—see Mid-October 2010), a Section 501(c) corporation, spent $20.4 million in electioneering communications in the 2010 Congressional elections, and disclosed none of its contributors; Americans for Job Security, a Section 501(c) corporation, spent $4.6 million in electioneering communication in the 2010 Congressional elections, and disclosed none of its contributors.” The lawsuit comes almost simultaneously with news that the White House is considering issuing an executive order that would require federal contractors to reveal their donations (see April 20, 2011). Democrats admit that even as they push the lawsuit forward, and President Obama publicly criticizes the practice of secret donations, they, too, are raising undisclosed donations for the various 2012 campaigns. Experts note that in most cases, Democrats’ efforts to raise undisclosed donations are far smaller than efforts by Republicans, and the amounts they are receiving are, so far, much smaller. Fred Wertheimer of Democracy 21, who is leading Van Hollen’s legal team, acknowledges that the lawsuit will not alter campaign finance policy before the 2012 elections, though he says it is possible that the lawsuit could receive a favorable decision and force disclosure while appeals are pending.
Similarities to DISCLOSE Act - Both the lawsuit and the executive order are similar to sections of the DISCLOSE Act, a legislative package drafted by Van Hollen and other Congressional Democrats that was blocked by Senate Republicans from coming to a vote (see July 26-27, 2010). USCOC spokesperson Blair Latoff says the lawsuit and the order comprise a “desperate attempt by the White House and House Democrats to resurrect the corpse of the DISCLOSE Act.” (Law professor Steven D. Schwinn will refute Latoff’s accusation, writing that Van Hollen’s lawsuit in no way seeks to force the DISCLOSE Act into law via the courts.) Like the failed legislation, the lawsuit and the proposed executive order would work to curtail the effects of the Supreme Court’s controversial Citizens United decision, which allows virtually unlimited and anonymous political spending by corporations and other entities. The lawsuit argues that the concealment of donor identities contradicts both the law and the Court’s ruling, citing the following language in the majority ruling: “With the advent of the Internet, prompt disclosure of expenditures can provide shareholders and citizens with the information needed to hold corporations and elected officials accountable.”
Seeks Change in FEC Regulations - The lawsuit specifically challenges an FEC regulation adopted in 2007 that contravened language in the 2002 Bipartisan Campaign Reform Act (see March 27, 2002) that required disclosure of donations of $1,000 or more if the donations were made for the purpose of furthering “electioneering communications.” Another petition filed by Van Hollen’s group asks the FEC to revise a regulation that “improperly allowed nonprofit groups to keep secret the donors” whose funds were being used to pay for so-called independent expenditures in federal elections. [van Hollen, 4/21/2011 pdf file; Los Angeles Times, 4/21/2011; New York Times, 4/21/2011; Steven D. Schwinn, 4/25/2011; Think Progress, 4/27/2011]
'Sign of Weakness' - Bradley A. Smith, a former FEC commissioner and the head of the Center for Competitive Politics, a conservative advocacy group, says of the lawsuit: “This is a sign of weakness by a group that’s afraid they’re going to lose, and lose big. Again and again, you see evidence that their real purpose is to try to shut down their political opposition.” Smith and other conservatives say Democrats want to “chill” free speech. [New York Times, 4/21/2011]
FEC Will Refuse to Consider Accompanying Petition - In December 2011, the FEC will refuse to consider an accompanying petition on a 3-3 vote. [Commission, 12/16/2011; Commission, 12/16/2011] The vote is along partisan lines, with the three Democrats on the commission voting to consider the petition and the three Republicans voting against. The law prohibits the FEC from having a majority of commissioners from either party. [Think Progress, 1/21/2012]
Judge Will Rule in Favor of Plaintiff - In March 2012, a district judge will rule in favor of Van Hollen in the lawsuit (see March 30, 2012).

Entity Tags: Bipartisan Campaign Reform Act of 2002, Americans for Job Security, Barack Obama, American Action Network, Blair Latoff, Bradley A. (“Brad”) Smith, Steven D. Schwinn, US Chamber of Commerce, DISCLOSE Act of 2010, Chris Van Hollen, Fred Wertheimer, Federal Election Commission

Timeline Tags: Civil Liberties

Long-shot Republican presidential candidate Buddy Roemer (R-LA), a former governor of Louisiana, gives an interview to the liberal news Web site Think Progress in which he blasts the current system of campaign finance. Roemer is campaigning on a promise to reduce the influence of the wealthy on the government, and refuses to accept over $100 in contributions from any one source. He also forces the disclosure of the identities of his donors. After speaking at a tea party rally in New Hampshire, Roemer speaks to Think Progress reporter Lee Fang. Roemer is highly critical of large corporate donors and the trade organizations that represent them, and decries the failure of the DISCLOSE Act to pass Congress (see July 26-27, 2010). “It’s disastrous, it’s dysfunctional, to their shame,” he says. Large corporations such as General Electric using their influence to avoid paying taxes is “what’s wrong with America.” Roemer adds: “Right now, too often the political debate has become about the money and not about the issues. And those who have the money have a vested interest in the results and you never know who they are.… I have full disclosure and I challenge my opponents to do the same.” Fang notes that some of the largest corporate donors and “bundlers” (groups like the US Chamber of Commerce, which “bundle” donations from corporations and individuals and funnel them to political organizations) support Roemer’s fellow Republican candidates, and are the primary reason why the DISCLOSE Act failed to pass. “They lobbied both Democrats and Republicans to kill the bill in the Senate,” Fang says. Roemer says Congress and the campaign financial system are both “dysfunctional,” and adds Democratic-supporting labor unions to the list of organizations that are corrupting politics. “The guys with the bucks want unfettered regulation. They want to run America.… The reason the tax code is four thousand pages long and paid no taxes last year and made five billion dollars? It’s [campaign] checks. That’s whats wrong with the American system. It’s not free anymore. It’s bought.” Roemer says the only way he knows to challenge the system is by example. “You know I’ve got to run against the system,” he says. “It’s corrupt. And the only way I know how to do it… is by example. I’m going to show that a grassroots campaign can capture New Hampshire, South Carolina. I’m going to whip ‘em, on my own terms.” The Republican Party does not support Roemer’s campaign, and is blocking Roemer from participating in primary debates. [Think Progress, 5/4/2011]

Entity Tags: US Chamber of Commerce, Republican Party, Think Progress (.org), Buddy Roemer

Timeline Tags: Civil Liberties

The Center for Responsive Politics (CRP), a nonpartisan campaign finance watchdog organization, finds that independent organizations supporting Republicans and Democrats are spending unprecedented amounts of money on supporting, or more often attacking, candidates for office. The huge rise in spending comes as a direct result of the Citizens United decision that allowed corporations and labor unions to spend unlimited amounts of money on campaign donations (see January 21, 2010). While organizations are spending huge amounts of money on both sides of the political divide, spending for conservative candidates outweighs spending on liberal candidates by an 8-1 margin. CRP’s analysis finds that the increased spending helped Republicans retake the US House of Representatives in 2010, and is having a long-term effect on the nation’s campaign and election systems. [Center for Responsive Politics, 5/5/2011; Think Progress, 5/6/2011]
Most Democratic Spending Comes from Unions - Labor unions gave over $17.3 million in independent expenditures opposing Republican candidates. The union contributing the most: the American Federation of State County and Municipal Employees (AFSCME), with over $7 million. The National Education Association (NEA) formed a “super PAC” (see March 26, 2010) that spent $3.3 million on election activities. Super PACs must disclose their donors and the amounts donated (see 2000 - 2005), but an array of groups under the 501(c) tax laws do not have to disclose that information (see September 28, 2010).
Corporations Spend Lavishly for Republicans - While corporations donated some money to Democratic causes, most of their money went to Republicans. Corporations gave over $15 million to super PACs such as American Crossroads, which supports an array of conservative candidates. CRP notes that conservative groups that do not have to disclose their donors spent $121 million, and corporations and wealthy individuals were the likely sources of almost all of that money.
Secret Donations on the Rise - In the 2006 elections, the percentage of spending from groups that do not disclose their donors was 1 percent. In 2010, it was 47 percent. “Nonprofit” organizations that can legally hide their donors and donations increased their spending from zero percent in 2006 to 42 percent in 2010. For the first time in over 20 years, outside interest groups outspent party committees, by $105 million. The amount of independent expenditure and electioneering communication spending by outside groups has gone up 400 percent since 2006. And 72 percent of political advertising spending by outside groups in 2010 came from sources that were prohibited from spending money in 2006. [Center for Responsive Politics, 5/5/2011]

Entity Tags: American Crossroads, American Federation of State County and Municipal Employees, US House of Representatives, National Education Association, Center for Responsive Politics

Timeline Tags: Civil Liberties

In response to reported discussions by the Obama administration on the possible issuance of an executive order forcing government contractors to disclose their political contributions (see April 20, 2011), Republicans in the House and Senate introduce legislation that would block such an order. Representative Tom Cole (R-OK) already successfully added a rider to a defense authorization bill that would block the order. Cole says he hopes that the White House will rethink the proposed executive order in light of the opposition from Congressional Republicans. “I am hoping they’re having second thoughts,” he tells a reporter. “This is the executive branch trying to legislate and use a very powerful weapon to do it. And not just legislate, but it is the executive branch trying to intimidate, in my opinion.” In the House, Representatives Cole, Darrell Issa (R-CA), and Sam Graves (R-MO) are sponsoring legislation against the order, while in the Senate, Senators Susan Collins (R-ME), Lamar Alexander (R-TN), Rob Portman (R-OH), and Minority Leader Mitch McConnell (R-KY) are introducing similar legislation. The bills prohibit federal agencies from collecting political information from government contractors as a condition for receiving a government contract. Cole says though his amendment is in the defense bill, he wants to ensure that government contractors are able to keep their political expenditures out of the public eye. “This is one of those things you attack from as many angles and avenues as you possibly can, because it is so important,” he says. “This will get less scrutiny in that process, and it’s a lot easier for Democrats in the Senate to avoid or to kill. A bill is a big statement.” Senate Democrats are likely to vote down the bills. Fred Wertheimer of Democracy 21, an advocacy group that stands for stricter campaign finance laws, says the Republican bills are “continuation[s] of abandonment of campaign finance disclosure by House Republicans, which began last year.” Wertheimer is referring to the DISCLOSE Act, legislation that would have forced outside political groups to disclose their donors, but was blocked by Republicans from coming to a vote (see July 26-27, 2010). Conservative donor organizations such as the US Chamber of Commerce (see January 21-22, 2010, July 26, 2010, August 2, 2010, October 2010, November 1, 2010, and February 10, 2011) support the Republican legislation. The Republican-led House Administration Committee has scheduled a hearing on the draft order. [The Hill, 5/26/2011]

Entity Tags: Obama administration, Darrell E. Issa, DISCLOSE Act of 2010, Fred Wertheimer, Mitch McConnell, US Senate, US Chamber of Commerce, Robert Jones (“Rob”) Portman, Sam Graves, US House of Representatives, Lamar Alexander, Susan Collins, Thomas Jeffery Cole

Timeline Tags: Civil Liberties

A new “super PAC” aligned with presidential candidate Mitt Romney (R-MA) is being formed by a group of Romney backers and former Romney campaign aides, according to a report by the Washington Post. Super PACs are political organizations that exist to influence elections, which take unlimited amounts of outside money from donors, including individuals, unions, and corporations, and pool that money to advocate for or against a candidate (see March 26, 2010). By law, super PACs are supposed to operate independently of a candidate’s official campaign organization.
Restore Our Future - The Romney super PAC, “Restore Our Future” (ROF), is one of a number of such organizations created in the aftermath of the US Supreme Court’s Citizens United ruling (see January 21, 2010). Restore Our Future is apparently the first super PAC to form specifically in support of one of the 2012 presidential contenders, with the sole exception of Priorities USA Action, a super PAC in support of President Obama. ROF treasurer Charles R. Spies, who served as Romney’s general counsel in his 2008 presidential effort, refuses to disclose how much the organization has raised, or who is donating. Spies merely says: “This is an independent effort focused on getting Romney elected president. We will do that by focusing on jobs and his ability to fix the economy.” A Romney campaign aide says that a Federal Election Commission (FEC) filing coming up in July will show the organization having raised some $20 million. A major Romney donor who refuses to allow his identity to be revealed says, “We just want to show that we’ve got more dough than anyone.” The Romney campaign’s communication director, Gail Gitcho, says the campaign welcomes any outside support, and points to the Obama campaign as the largest fundraiser in the race, saying, “We are pleased that independent groups will be active in fighting this entrenched power [the Obama campaign] so the country can get back to work.”
Leaders of ROF - Members of the ROF board of directors include Spies; Carl Forti, political director for Romney’s 2008 campaign; and Larry McCarthy, a member of the Romney media team in 2008. Forti is the co-founder of the Black Rock Group consulting firm and the political director of American Crossroads, a conservative super PAC expected to raise over $120 million for candidates in 2012. Neither Forti nor American Crossroads will discuss the role played by Forti in both organizations. ROF actually registered itself with the FEC in October 2010, but has remained unaffiliated and essentially dormant until recent weeks. Now ROF officials are briefing top donors about the organization’s plans and fundraising goals. Former Obama spokesman Bill Burton, the head of Priorities USA Action, says: “I’m not surprised that there’s even more money coming into this race to help Mitt Romney. He’s a pretty deeply flawed candidate; he’s going to need all the help he can get.” Dave Levinthal of the Center for Responsive Politics says of the super PACs: “The outside groups are akin to the biggest booster club you can imagine for a college football team. The club can’t give cars or gifts to the players, but they can do everything else possible to support them.… It’s a brand-new way to play politics.” [Washington Post, 6/23/2011] The Post fails to note many of the details about ROF’s senior officials. According to the Public Campaign Action Fund, Spies is not only a lawyer and a consultant, but a registered lobbyist for Clark Hill PLC, representing a chain of luxury casinos. ROF’s address as listed on its FEC filings is the same as Clark Hill’s Washington, DC, office. The Action Fund observes, referring to the Republican primary and the number of wealthy donors lined up behind each major candidate, “While [ROF] officially can’t coordinate with the Romney campaign, having lobbyists on your side is definitely a good way to boost one’s standing in the so-called ‘wealth primary.’” [Public Campaign Action Fund, 6/23/2011] The liberal news Web site Think Progress will soon note that McCarthy is a veteran advertising creator for Republican candidates, and was one of the strongest creative forces behind the infamous 1988 “Willie Horton” ad, which many considered to be extraordinarily racist (see September 21 - October 4, 1988). In 2010, McCarthy served as a media strategist for the American Future Fund, which launched attack ads attempting to link Democrats to the Park 51 community center in Manhattan, deemed by conservatives as the “Ground Zero Victory Mosque” and mischaracterized as a monument celebrating the 9/11 attacks. Those ads were decried by many as being bigoted against Muslims. McCarthy has brushed off criticism of his ads, and said the fact-checking organizations that found his ads to be flawed suffered from a pro-Democratic bias. Think Progress reporter Lee Fang will write that when he tried to find the American Future Fund office in Iowa, the address listed for the group turned out to be a UPS mailbox in a strip mall near an airport. Fang will write, “With a record of such secrecy and racist, anything-goes campaign tactics, one can expect Romney’s new outside group to be just as ugly in the presidential race.” [Politico, 10/29/2010; Think Progress, 6/27/2011]

Entity Tags: Charles R. Spies, Washington Post, Willard Mitt Romney, Carl Forti, American Future Fund, American Crossroads, 2012 Obama presidential election campaign, US Supreme Court, Bill Burton, Think Progress (.org), Public Campaign Action Fund, Larry McCarthy, Gail Gitcho, Federal Election Commission, Dave Levinthal, Lee Fang, Restore Our Future, Priorities USA Action, Mitt Romney presidential campaign (2012)

Timeline Tags: Civil Liberties, 2012 Elections

A mysterious company that donated $1 million to a political action committee (PAC) favoring presidential candidate Mitt Romney (R-MA) dissolves just months after its formation, leading some to speculate that its only purpose was to make political donations. The company, W Spann LLC, was formed on March 15, 2011 by Boston lawyer Cameron Casey, who specializes in estate tax planning—“wealth transfer strategies”—for “high net worth individuals,” according to corporate records and the lawyer’s biography on her firm’s Web site. Casey filed a “certificate of formation” with the Delaware Secretary of State’s office, but provided no information about the firm. The only address listed was that of a Wilmington, Delaware, registered agent service, Corporation Service Company, which provides such services for many companies. That firm refuses to discuss its clients. Spann’s address was listed as 590 Madison Avenue, New York City, a midtown Manhattan office building, but the building’s management firm, Minskoff Equities, shows no records of any such tenant. On April 28, W Spann LLC donated $1 million to Restore Our Future, a “super PAC” (see 2000 - 2005 and June 30, 2000) aligned with the Romney campaign (see June 23, 2011). Casey dissolves the company today, two weeks before Restore Our Future makes its first campaign filing of the year reporting the donation, by filing a “certificate of cancellation.” Lawrence Noble, the former general counsel of the Federal Election Commission (FEC), says, “I don’t see how you can do this,” when asked about the donation. If the only purpose of Spann’s formation was to contribute to the pro-Romney group, “There is a real issue of it being just a subterfuge” and that could raise a “serious” legal issue, Noble says. At least, “[w]hat you have here is a roadmap for how people can hide their identities” when making political contributions. Casey will refuse to discuss the matter with the press, and her employer, the law firm Ropes & Gray, will say through a spokesman that it cannot comment. (Ropes & Gray has as a longtime client Bain Capital, the firm formerly headed by Romney. The law firm has its offices at 590 Madison.) Restore Our Future campaign treasurer Charles Spies, a former Romney campaign official, will also refuse to answer questions about Spann. He will say, “Restore Our Future has fully complied with, and will continue to comply with, all FEC disclosure requirements.” A Romney campaign official will later add, “Mitt Romney follows both the letter of the law and the spirit of the law in all circumstances.” Bain Capital spokesperson Alex Stanton says of W Spann: “Bain Capital has many employees who actively participate in civic affairs, and they individually support candidates from both parties. The firm takes no position on any candidate, and the entity in question is not affiliated with Bain Capital or any of our employees.” Critics say the Spann story shows how easily disclosure requirements are being avoided in the aftermath of the Citizens United decision (see January 21, 2010). “This is sham disclosure. It’s a barrier to disclosure,” says Michael Malbin of the Campaign Finance Institute. It is another example of how American political campaigns have gone “back to the future” and to the “pre-Watergate days” (of 1972) when Richard Nixon was raising unlimited amounts of money without disclosure, Malbin says. [MSNBC, 8/4/2011]

Entity Tags: Lawrence M. Noble, Bain Capital, Alex Stanton, Cameron Casey, Corporation Service Company, Restore Our Future, W Spann LLC, Michael Malbin, Minskoff Equities, Charles R. Spies, Ropes & Gray, Willard Mitt Romney

Timeline Tags: Civil Liberties, 2012 Elections

On a 259-169 vote, the US House of Representatives passes an amendment that would “prohibit the use of funds to implement any rule, regulation, or executive order regarding the disclosure of political contributions.” The amendment to an unrelated bill was introduced by Representative Rodney Frelinghuysen (R-NJ) on June 24, 2011. The amendment is aimed at preventing the Obama administration from implementing any policy or executive order that would force disclosure on the anonymous corporate donors that have spent tens of millions of dollars influencing elections since the Citizens United ruling (see January 21, 2010). Eighteen Democrats join almost every Republican in voting for the amendment. Ian Millhiser of the liberal news Web site Think Progress speculates that many of those voting for the amendment were influenced by a huge corporate public relations and lobbying effort against campaign finance. After the media revealed that the Obama administration was considering issuing an executive order that would force government contractors to disclose their campaign donations (see April 20, 2011 and May 26, 2011), as Millhiser writes, “industry groups responded by ginning up paranoid fantasies claiming that the administration would use these disclosures to create a ‘pay to play’ scenario where only contractors who donate to Democratic causes could receive contracts.” Recent history, however, indicates that mandated disclosure would bring about the opposite effect, Millhiser writes. He recalls the 2008 resignation of Housing and Urban Development Secretary Alphonso Jackson, who was implicated in a huge scandal involving his office’s illegal contracting practices, wherein President Bush’s political opponents were denied government contracts while “personal cronies” were awarded contracts. “Had a disclosure rule been in effect,” Millhiser writes, “it would have been possible to compare the donation patterns of all government contractors against who was awarding them contracts, and systematically uncover examples of political corruption. Transparency is the enemy of corruption—not the means to implement it.” [Washington Post, 5/15/2011; US House of Representatives, 7/15/2011; Think Progress, 7/18/2011]

Entity Tags: US House of Representatives, Ian Millhiser, Obama administration, Rodney Frelinghuysen

Timeline Tags: Civil Liberties

Law professor John Yoo, who during his tenure at the Justice Department wrote memos defending torture and the right of the executive branch to conduct its business in secret (see March 1996, September 25, 2001, September 25, 2001, October 4, 2001, October 23, 2001, October 23, 2001, November 2, 2001, November 5, 2001, and November 6-10, 2001), co-authors an article for the far-right American Enterprise Institute that attacks the Obama administration for considering the idea of an executive order to require government contractors to disclose their political contributions (see April 20, 2011 and May 26, 2011). The article, by Yoo and lawyer David W. Marston, is entitled “Overruling Citizens United with Chicago-Style Politics,” a reference to some of the unsavory and often-illegal political machinations undertaken by Chicago Democrats. The article repeatedly compares the Obama administration to the Nixon administration’s attempts to “use the available federal machinery to screw [their] political enemies,” as Yoo and Marston quote from a 1971 Nixon White House memo. Yoo and Marston say that the Obama administration, in an effort to recoup its losses from the Citizens United decision (see January 21, 2010]), “is making an unprecedented assault on free speech” by considering the executive order and by pushing the DISCLOSE Act (see July 26-27, 2010). (Yoo and Marston claim that the DISCLOSE Act, if passed into law, “would have forced all those doing business with the government to give up their ability to participate in the political process, as is their right under the First Amendment, aside from just voting on Election Day.”) They write: “Under the guise of ‘transparency’ and ‘accountability,’ the order curtails constitutionally protected speech rights and opens the door for retaliation against those not supporting the administration politically,” and go on to observe that in their opinion, this “assault on free speech” (see January 21, 2010 and January 22, 2010) is being joined by “the media [and] defenders of free speech.” Yoo and Marston claim that the Founding Fathers intended for corporations and other entities to be able to involve themselves in politics entirely anonymously, citing the example of Alexander Hamilton, John Jay, and James Madison publishing the Federalist Papers under the nom de plume “Publius.” Indeed, Yoo and Marston write, “disclosure of political contributions may be a prelude to the thuggish suppression of political speech by harassment and intimidation,” and they cite the instances of boycotts, vandalism, and death threats against people in California who donated money in support of Proposition 8, which declared gay marriage illegal. “Mandated disclosure of financial support for a political viewpoint can become the springboard for lawless retaliation against citizens for holding unpopular views,” the authors write. “Disclosure” and “transparency,” the “wonder drugs du jour,” are already “being used to silence core First Amendment speech rights and to threaten America’s long protection of anonymous political speech,” they contend, and claim that “thugs” are attempting to use violence and intimidation to nullify the Citizens United decision, force the issuance of the Obama executive order, and push the Federal Election Commission (FEC) to expand disclosure requirements. Only allowing financial donors to remain secret, the authors say, protects their rights to free speech and political involvement. “[D]isclosure invites retaliation,” they argue; only secrecy can protect free speech. The authors even cite a case brought on behalf of the NAACP, in which the organization was allowed to keep its membership lists secret for fear of attacks on its members or their families by white supremacists. [American Enterprise Institute, 7/20/2011] Ian Millhiser, a legal expert for the liberal news Web site Think Progress, angrily rebuts Yoo and Marston’s claims. Millhiser, referencing Yoo’s opinions issued during his stint in the Bush administration, writes, “If there is anyone in the universe who should think twice before criticizing a government lawyer for enabling a president to break the law, it is John Yoo.” He goes on to criticize Yoo’s legal thinking in the article, noting that the Citizens United ruling held that “disclosure could be justified based on a governmental interest in ‘provid[ing] the electorate with information’ about the sources of election-related spending.” Millhiser writes: “President Obama’s proposed executive order provides the electorate with information about the sources of election-related spending. So Yoo’s entire argument can be rebutted in exactly two sentences.” After rebutting other portions of Yoo and Marston’s arguments, Millhiser concludes, “Yoo’s defense of corporate America’s power to secretly buy elections is weak even by his own tragically incompetent standards.” [Think Progress, 7/22/2011]

Entity Tags: Ian Millhiser, American Enterprise Institute, DISCLOSE Act of 2010, Federal Election Commission, Nixon administration, US Department of Justice, John C. Yoo, David W. Marston, Obama administration

Timeline Tags: Civil Liberties

A dozen wealthy donors have contributed over half of the money collected by so-called “super PACs” in the first half of 2011, according to an analysis by USA Today. Super PACs are political organizations that exist to influence elections, which take unlimited amounts of outside money from donors, including individuals, unions, and corporations, and pool that money to advocate for or against a candidate (see March 26, 2010). By law, super PACs are supposed to operate independently of a candidate’s official campaign organization.
Majority of Donors Republican Contributors - The majority of those donors are contributing to Republican/conservative organizations, and overall, Republican organizations are outraising Democratic organizations by a 2-1 margin. American Crossroads, the organization formed by former Bush political advisor Karl Rove, has collected $2 million from billionaire Jerry Perenchio, another million from billionaire Robert B. Rowling, and $500,000 from Texas real estate billionaire Bob Perry. The super PAC supporting the Obama reelection campaign, Priorities USA Action, founded by former Obama spokesperson Bill Burton, has collected $2 million from Hollywood mogul Jeffrey Katzenberg, and $500,000 each from media owner Fred Eychaner and from the Service Employees International Union (SEIU). The super PAC supporting the presidential campaign of Mitt Romney (R-MA), Restore Our Future (see June 23, 2011), has received million-dollar donations from hedge fund manager John Paulson, Utah firms Eli Publishing and F8 LLC, and the shadowy W Spann LLC (see July 12, 2011). It has also received half a million each from Perry, financiers Louis Moore Bacon and Paul Edgerly, Edgerly’s wife Sandra Edgerly, New Balance Athletic Shoes executive James S. Davis, J.W. Marriott of the hotel chain Marriott International, and Richard Marriott of Host Hotels and Resorts. Meredith McGehee of the Campaign Legal Center says: “The super PACs are for the wealthy, by the wealthy, and of the wealthy. You’re setting up a dynamic where the candidates could become bit players in their own campaigns,” particularly in less-expensive races for the House of Representatives. Katzenberg says his donation to the Obama-supporting super PAC was because of the increasing dominance of “Republican extremists” in national elections: “The stakes are too high for us to simply allow the extremism of a small but well-funded right wing minority to go unchallenged.” Charles Spies, the treasurer of Restore Our Future and Romney’s former general counsel, refuses to discuss donors, but says, “Donors recognize Mitt Romney is the most experienced and qualified candidate to challenge President Obama’s record of out-of-control, big government spending.” One donation drawing scrutiny is a $193,000 donation to the presidential campaign of Governor Rick Perry (R-TX) from a group called Americans for Rick Perry. The primary funder of that group is Texas billionaire Harold Simmons, who gave $100,000 to the group 10 days after Perry signed legislation allowing Simmons’s company to accept low-level radioactive waste from other states at its West Texas facility. A Perry spokesman denies any coordination between Simmons and his campaign, and says Perry has not even decided whether to run for president. Simmons helped fund the 2004 group Swift Boat Veterans for Truth, which launched a powerful campaign that smeared then-presidential candidate John Kerry (D-MA) and his Vietnam War record. American Crossroads has reported raising $3.9 million during the first six months of 2011. Its affiliate, Crossroads GPS, has spent $19 million on anti-Democrat advertising so far. That group does not have to report its donors or the amounts it receives. [USA Today, 8/4/2011]
'Recipe for Corruption - Legal expert Ian Millhiser of the liberal news Web site Think Progress comments: “It’s tough to imagine a surer recipe for corruption. Although super PAC’s are prohibited from giving money directly to candidates—one of the few remaining campaign finance laws that wasn’t eviscerated by Citizens United and similar cases (see January 21, 2010)—it’s not like a presidential candidate isn’t perfectly capable of finding out which billionaires funded the shadowy groups that supported their campaign. Moreover, if just a handful of people are responsible for the bulk of these donations, a newly elected president will have no problem figuring out who to lavish favors on once they enter the White House.” [Think Progress, 8/4/2011]

Entity Tags: Charles R. Spies, Robert B. Rowling, Richard Marriott, Bobby Jack Perry, Sandra Edgerly, Service Employees International Union, USA Today, W Spann LLC, A. Jerrold Perenchio, American Crossroads, American Crossroads GPS, Priorities USA Action, Paul Edgerly, Restore Our Future, Bill Burton, Harold Simmons, Meredith McGehee, Fred Eychaner, Eli Publishing, F8 LLC, Ian Millhiser, Louis Moore Bacon, James S. Davis, John Paulson, Karl C. Rove, James Richard (“Rick”) Perry, Jeffrey Katzenberg, J. W. (“Bill”) Marriott

Timeline Tags: Civil Liberties

The campaign of presidential candidate Mitt Romney (R-MA), the former governor of Massachusetts, acknowleges the influence of the Koch brothers (see July 3-4, 2010 and August 30, 2010) on Republican politics and the “tea party” movement. According to an internal campaign memo, the Koch brothers, particularly David Koch, are the “financial engine of the tea party” even though Koch “denies being directly involved.” The memo explicates the attempts that Romney and the campaign have taken to secure the support of the Koch brothers, including a January 2011 meeting between Romney and David Koch at an elite club in Manhattan, and an August 28 meeting that was canceled because of Hurricane Irene. David Koch publicly endorsed Romney for president in 2008, and one of Romney’s first major campaign fundraisers for the 2012 race was held at Koch’s mansion in the Hamptons. Political strategists acknowledge the success the Koch brothers have had in getting dozens of far-right candidates elected to Congress in 2010 and creating a network of tea party members who can help Romney secure the 2012 presidential nomination. Strategists have also noted Romney’s lack of support among many tea party members and organizations, and the likelihood that Romney will fail to capture the 2012 Republican presidential nomination without tea party support. “In many national surveys, Romney has had difficulty breaking 25 percent in support and that’s because [tea party] conservatives are suspicious of him and doubt his commitment to their issues,” says the Brookings Institution’s Darrell West. “He’s courting the tea party because he needs them to win.” But that support is far from certain. Judson Phillips, the co-founder of Tea Party Nation, says: “Our vote is split up among so many candidates—none of whom are Romney. Romney’s problem with a lot of tea party voters, myself included, is at this point I don’t know what he believes and I don’t care—because even if he tells me, ‘When I get to the White House I’m going to be fiscally conservative,’ he will probably change his mind, depending on which way the political winds are blowing.” Romney has a reputation as a “flip-flopper” who has changed his mind on a number of key issues, and a closet moderate who once supported abortion rights, the 2008 government bank bailouts, gay rights, and gun control. [Washington Examiner, 11/2/2011; Think Progress, 11/3/2011]

Entity Tags: David Koch, Charles Koch, Mitt Romney presidential campaign 2000, Willard Mitt Romney, Judson Phillips

Timeline Tags: Domestic Propaganda

A new report by the Brennan Center for Justice shows that just three “independent” corporate political organizations outspent the US labor movement in judicial elections for 2009-10. The report, entitled “The New Politics of Judicial Elections 2009-10,” shows that three corporate interest groups—the Ohio Chamber of Commerce (Partnership for America’s Future), the Business Council of Alabama, and the Illinois Civil Justice League (JustPAC) outspent the US labor movement 13-1 in trying to influence state Supreme Court elections. Together, the three groups spent $3,554,445 on activities involving judicial elections. In total, organized labor groups spent $261,4230. Labor unions have always contended that they could not spend nearly as much on election activities as corporations. [Skaggs et al., 10/2011 pdf file; Think Progress, 10/27/2011]

Entity Tags: Ohio Chamber of Commerce, Illinois Civil Justice League, Brennan Center for Justice, Business Council of Alabama

Timeline Tags: Civil Liberties

Representative Ted Deutch (D-FL) introduces a resolution proposing a constitutional amendment that would ban corporate money in politics and end “corporate personhood.” Deutch calls his proposal the Outlawing Corporate Cash Undermining the Public Interest in our Elections and Democracy (OCCUPIED) Amendment. The proposal reads, “Proposing an amendment to the Constitution of the United States to expressly exclude for-profit corporations from the rights given to natural persons by the Constitution of the United States, prohibit corporate spending in all elections, and affirm the authority of Congress and the states to regulate corporations and to regulate and set limits on all election contributions and expenditures.” The amendment, if adopted, would overturn the Citizens United decision (see January 21, 2010), re-establish the right of Congress and the states to regulate campaign finance laws, and effectively outlaw the ability of for-profit corporations to contribute to campaign spending. Deutch says in a statement that refers to the Occupy protesters demonstrating throughout the nation: “No matter how long protesters camp out across America, big banks will continue to pour money into shadow groups promoting candidates more likely to slash Medicaid for poor children than help families facing foreclosure. No matter how strongly Ohio families fight for basic fairness for workers, the Koch brothers will continue to pour millions into campaigns aimed at protecting the wealthiest 1 percent (see November 8, 2011). No matter how fed up seniors in South Florida are with an agenda that puts oil subsidies ahead of Social Security and Medicare, corporations will continue to fund massive publicity campaigns and malicious attack ads against the public interest. Americans of all stripes agree that for far too long, corporations have occupied Washington and drowned out the voices of the people. I introduced the OCCUPIED Amendment because the days of corporate control of our democracy. It is time to return the nation’s capital and our democracy to the people.” [US House of Representatives, 11/18/2011 pdf file; Think Progress, 11/18/2011] Three weeks ago, a group of Democratic senators introduced a similar amendment (see November 1, 2011). On December 8, Senator Bernie Sanders (I-VT) will introduce a version of the OCCUPIED Amendment in the Senate that he calls the Saving American Democracy Amendment. Deutch will say of Sanders’s action: “There comes a time when an issue is so important that the only way to address it is by a constitutional amendment. I am thrilled that Senator Bernie Sanders has introduced the Saving American Democracy Amendment, a companion bill to H.J. Res 90, my legislation in the House. The dominance of corporations in Washington has imperiled the economic security of the American people and left our citizens profoundly disenchanted with our democracy. I look forward to working with Senator Sanders to save American democracy by banning all corporate spending in our elections and cracking down on secret front groups using anonymous corporate cash to undermine the public interest.” [Think Progress, 12/8/2011] Two House Democrats introduced similar legislation in September 2011 (see September 20, 2011).

Entity Tags: 2011 Outlawing Corporate Cash Undermining the Public Interest in our Elections and Democracy (OCCUPIED) Amendment, Bernie Sanders, Theodore E. (“Ted”) Deutch, 2011 Saving American Democracy Amendment

Timeline Tags: Civil Liberties

The Federal Election Commission (FEC) unanimously rejects a petition by Senator Mike Lee (R-UT) for him to be allowed to head his own “super PAC” (see March 26, 2010). Lee’s “leadership PAC,” the Constitutional Conservatives Fund PAC (CCFPAC), had requested permission from the FEC to turn itself into a PAC capable of accepting donations directly from corporations and unions (see October 17, 2011). Previously, the FEC had released a draft opinion opposing the request, but Lee’s lawyer Dan Backer had said he felt the FEC would approve the request. Lee spokesperson Brian Phillips calls the decision “a head-scratcher.” Backer and Lee had counted on the controversial Citizens United Supreme Court decision (see January 21, 2010) that allowed corporations and labor unions to spend unlimited amounts in independent expenditures on behalf of candidates, and essentially say that if corporations and unions can run super PACs, politicians should be able to do so as well. They argued that because the law bars Lee from spending the money on his own reelection efforts, and because he is willing to pledge that he would not personally solicit large donations, the FEC should grant the request. The draft opinion said that Lee’s request violates campaign finance law that expressly prohibits elected officials from being associated with a political entity that collects money beyond the legal limits (see March 27, 2002), and the unanimous decision echoes that finding. A PAC such as the CCFPAC is limited to collecting $5,000 per person per year and is banned entirely from accepting corporate donations. Lee, a “tea party” favorite, would have been the first politician in the country to have his own super PAC. Commissioner Donald McGahn, the most conservative commissioner and an opponent of most campaign finance laws, told Lee and his legal team: “Your argument essentially does away with contribution limits. It’s well beyond what we do here and well beyond what I do here, which is saying something.” McGahn says he agrees that the government should not discriminate when applying regulations on independent expenditures, but that the statute and regulations clearly limit contributions to members of Congress to protect against corruption or the appearance of corruption. Lee’s office says that letting Lee run a super PAC of his own would actually increase transparency and accountability. Lee may yet appeal the decision to the Supreme Court. [Salt Lake Tribune, 11/24/2011; Think Progress, 11/28/2011; Deseret News, 12/1/2011]

Entity Tags: Federal Election Commission, Brian Phillips, Constitutional Conservatives Fund PAC, Donald McGahn, Michael Shumway (“Mike”) Lee

Timeline Tags: Civil Liberties

According to a Washington Post analysis, 10 percent of US billionaires have given to the presidential campaign of Mitt Romney (R-MA), who seems to be securing enough primary wins to be named the Republican Party’s presidential nominee. Romney himself is a former venture capitalist worth at least $250 million. Forty-two of the US’s 412 billionaires have donated to Romney’s campaign and third-party “super PACs” (see March 26, 2010, June 23, 2011, and November 23, 2011). President Obama has 30 billionaires on his donor list, or something over 7 percent. Romney opponents Rick Perry (R-TX) and Jon Huntsman (R-UT) have 20 and 12, respectively. The Washington Post reports: “Very wealthy donors are likely to play a greater role in this election cycle in the wake of recent court decisions that have loosened rules for campaign contributions (see January 21, 2010). That will only heighten one of the dominant narratives of the 2012 campaign: the nation’s rising income inequality and the outsize political influence of the super-wealthy.” Donors can only give $5,000 directly to candidates’ campaigns, but under the Citizens United ruling, they can give unlimited amounts to super PACs that run independent ads on behalf of, or in opposition to, candidates. “The only limit on the resources is the willingness of the donors to give,” says government professor Anthony Corrado, a former Democratic official. “It doesn’t take long to transfer $500,000 from one account to another.” Obama had a head start in raising campaign funds going into October 2010, largely because the Republican candidates were spending money against one another in primary battles. But now that Romney seems more and more assured as the Republican nominee, Republican donors are expected to focus on donating to his campaign and super PACs, and are expected to catch up to and surpass Obama and the Democrats in short order (see August 2, 2010, September 20, 2010, September 13-16, 2010, October 2010, Around October 27, 2010, May 5, 2011, and August 4, 2011). In 2008, Obama distanced his campaign from third-party donors, and donations from those individuals and interests were relatively down. But, perhaps recognizing the advantage Republicans have in raising money from the wealthy, Obama no longer objects to those donations. Romney’s largest donor so far is hedge-fund billionaire John Paulson, who has given $1 million to Romney’s super PAC Restore Our Future (see June 23, 2011). Think Progress’s Travis Waldron notes that Paulson made millions by shorting the housing market before the mortgage collapse that sparked the global financial crisis and drove the US economy into a recession. Other billionaires supporting Romney include Washington Redskins owner Dan Snyder, California real estate developer Donald Bren, and developer and publisher Sam Zell. Several billionaires who used to support Romney’s primary opponent Newt Gingrich (R-GA), including casino mogul Sheldon Adelson and Amway founder Richard DeVos, are expected to begin giving generously to the Romney campaign or to his super PAC. Obama’s richest donor is Len Blavatnik, a Russian-American industrialist who has also donated to Romney. Other billionaires supporting Obama include insurance magnate Peter Lewis, former Google executive Eric Schmidt, and venture capitalist John Doerr. Obama campaign spokesman Ben LaBolt downplays the billionaire contributions, saying, “Our campaign is fueled by donations from more than 1 million Americans, 98 percent of which were in amounts of $250 or less.” Corrado says that as the November elections approach, spending will only increase. “One of the things about large investors in campaigns is that they’re very interested in getting results,” he says. “And it is much easier to get a large effect in a race if you can give to directly advocate for and against a candidate.” [Washington Post, 12/1/2011; Think Progress, 12/6/2011]

Entity Tags: Dan Snyder, Sam Zell, Sheldon Adelson, Washington Post, Willard Mitt Romney, Anthony J. Corrado Jr., 2012 Obama presidential election campaign, Ben LaBolt, Restore Our Future, Richard DeVos, Newt Gingrich, James Richard (“Rick”) Perry, Eric Schmidt, Donald Bren, Peter Lewis, Mitt Romney presidential campaign (2012), John Paulson, Barack Obama, Len Blavatnik, Jon Huntsman, John Doerr

Timeline Tags: Civil Liberties, 2012 Elections

Presidential candidate Mitt Romney (R-MA) criticizes the influence of super PACs and third-party organizations in political campaigns, calling the “new entities” a “disaster” and claiming that campaign finance laws have “made a mockery of our political campaign season.” Romney was the first to form a presidential super PAC, Restore Our Future (ROF—see June 23, 2011), and that organization has been extraordinarily successful in raising money to use for Romney’s benefit (see January 31, 2012, February 6, 2012, March 11, 2012, May 21, 2012, and Late May 2012). In an appearance on MSNBC, Romney says: “This is a strange thing in these campaign finance laws. They set up these new entities, which I think is a disaster, by the way. Campaign finance law has made a mockery of our political campaign season.… We really ought to let campaigns raise the money they need and just get rid of these super PACs.” Republicans have advocated for unlimited direct contributions (see April 27, 2011, May 26, 2011 and After, January 10, 2012, January 21, 2012, and January 31, 2012) to candidates’ campaigns. Such direct contributions are currently illegal. Asked if he would ask ROF to stop running an ad that drew criticism from its target, Romney’s primary challenger Newt Gingrich (R-GA), he answers: “It’s illegal, as you probably know. Super PACs have to be entirely separate from a campaign and a candidate. I’m not allowed to communicate with a super PAC in any way, shape, or form. If we coordinate in any way whatsoever, we go to the big house.” Gingrich has recently said that the idea of super PACs running entirely independently of the campaigns they work to assist is “baloney,” stating: “They ought to take this junk [negative ads] off the air. And don’t hide behind some baloney about, this ‘super PAC that I actually have no control over that happens to be run by five of my former staff.’ That’s just baloney.” ROF was created by, and is staffed by, many former aides and colleagues of Romney’s. Gingrich has named a former aide, Rick Tyler, to work with his super PAC, Winning Our Future. [CBS News, 12/11/2011]

Entity Tags: Winning Our Future, Restore Our Future, Willard Mitt Romney, Newt Gingrich

Timeline Tags: Civil Liberties, 2012 Elections

Congress passes a defense spending bill with controversial provisions authorizing the indefinite military detention, or rendering to a foreign country or entity, without charge or trial, of any person, including US citizens, detained, arrested, or captured anywhere in the world, including the US. The bill is the 2012 National Defense Authorization Act (NDAA) (H.R. 1540 and S. 1867). [GovTrack, 12/31/2012] The NDAA created controversy soon after the indefinite detention provisions were revealed (see July 6, 2011 and after). Civil liberties and human rights advocates raised concerns about sections 1026, 1027, and 1028, which restrict transfers and releases of prisoners from the US prison at Guantanamo, including those found to be innocent, but the most controversial parts of the bill are Sections 1021 and 1022, which provide for indefinite military detention. A federal judge will later issue a preliminary injunction barring enforcement of Section 1021, finding it unconstitutional (see May 16, 2012). [Verdict, 12/21/2011]
Detention Authorities Currently Unclear, Not Settled by NDAA - The Supreme Court ruled by plurality in Hamdi v. Rumsfeld (2004) (see June 28, 2004 that Yaser Esam Hamdi, a US citizen captured by the Northern Alliance in Afghanistan and alleged to have been armed and traveling with a Taliban unit (see December 2001), could be held by the military without charge or trial until the end of hostilities authorized by the 2001 Authorization for Use of Military Force (AUMF). In other circumstances, such as persons not engaged in armed combat with US forces, or persons arrested or captured away from a battlefield, or inside the United States, the rights of prisoners and the legality of indefinite military detention are unsettled issues, and the NDAA provides no clarification. The AUMF makes no reference to the detention of prisoners or military operations inside the United States, but both the Bush and Obama administrations have consistently interpreted language giving the president authority to use “all necessary and appropriate force” to include broad powers of detention. Due to the lack of clear expression of the scope of these authorities in the AUMF, as well as potential conflicts with the Constitution, related case law includes differing judicial opinions. Supreme Court rulings have not addressed all the questions raised by the complexity of the issues involved. [New York Times, 12/1/2011; Secrecy News, 2/6/2012; Elsea, 6/11/2012 pdf file; Salon, 12/15/2012] The NDAA states in 1021(d), “Nothing in this section is intended to limit or expand the authority of the president or the scope of the [AUMF],” and (e): “Nothing in this section shall be construed to affect existing law or authorities relating to the detention of United States citizens, lawful resident aliens of the United States, or any other persons who are captured or arrested in the United States.” [Public Law 112 81 pdf file] This language was included following the nearly unanimous passage of Senate Amendment (SA) 1456. It was a compromise, following the defeat of three other amendments proposed by members of Congress concerned about the NDAA’s blanket detention authority: SA 1107, introduced by Senator Mark Udall (D-CO), which would have removed detention provisions from the bill and required the executive branch to submit a report to Congress on its interpretation of its detention powers and the role of the military; SA 1125, introduced by Senator Diane Feinstein (D-CA), which would have limited the definition of covered persons to those captured outside US borders; and SA 1126, also introduced by Feinstein, which would have would have excluded US citizens from indefinite detention provisions. [Senate, 12/1/2011; The Political Guide, 12/31/2012] Supporters of broad detention authority say the entire world is a battlefield, and interpret Hamdi to mean any US citizen deemed an enemy combatant can legally be detained indefinitely by the military. Opponents point out that Hamdi was said to have been fighting the US in Afghanistan, and that military detention without trial is limited to those captured in such circumstances. Opponents also say the 1971 Non-Detention Act outlawed indefinite detention of US persons arrested in the US. Feinstein, who submitted SA 1456 inserting the compromise language, states: “[T]his bill does not change existing law, whichever side’s view is the correct one. So the sponsors can read Hamdi and other authorities broadly, and opponents can read it more narrowly, and this bill does not endorse either side’s interpretation, but leaves it to the courts to decide.” Senator Carl Levin (D-MI), sponsor of the original NDAA in the Senate, agrees, saying: “[W]e make clear whatever the law is. It is unaffected by this language in our bill.” [Senate, 12/1/2011]
NDAA 'Affirms' Authority Not Expressly Granted in AUMF, Further Muddies Already Unclear Powers - In the NDAA, Congress attempts to settle some of the aforementioned legal questions by asserting in the NDAA that these authorities were included in the AUMF or that the president already possessed them (unless the courts decide otherwise). Section 1021(a) states: “Congress affirms that the authority of the president to use all necessary and appropriate force pursuant to the [AUMF]… includes the authority for the Armed Forces of the United States to detain covered persons (as defined in sub-section (b)) pending disposition under the law of war… (c)(1) until the end of the hostilities authorized by the [AUMF].” This clear statement regarding detention authority is an implicit acknowledgment that the AUMF neither explicitly authorizes indefinite military detention, nor spells out the scope of such authority. As noted above, both the George W. Bush and Obama administrations, citing the AUMF, have claimed this authority, and some courts have upheld their interpretation. However, as noted by critics of the bill such as the American Civil Liberties Union (ACLU), Human Rights Watch (HRW), and constitutional scholar Glenn Greenwald, this is the first time Congress has codified it. Also, despite Congress’s assertion in the NDAA that it does not “expand… the scope of the [AUMF],” the language in the bill does exactly that. The AUMF pertained only to those responsible for the 9/11 attacks, or those who harbored them. Subsection (b)(2) of the NDAA expands the definition of covered persons and activities to include “[a] person who was a part of or substantially supported al-Qaeda, the Taliban, or associated forces that are engaged in hostilities against the United States or its coalition partners, including any person who has committed a belligerent act or has directly supported such hostilities in aid of such enemy forces.” Terms such as “substantially supported,” “directly supported,” and “associated forces” are not defined in the NDAA and are thus subject to interpretation, introducing new ambiguities. In addition, though the AUMF does not explicitly authorize it, the NDAA clearly covers any person, including US persons, “captured or arrested in the United States,” should the courts decide that the AUMF did, in fact, authorize this, or that it is otherwise constitutional. A federal judge will later issue a preliminary injunction barring enforcement of this section of the NDAA, in part because of its conflicting, vague language but also because of her finding that it infringes on the right to due process, and to freedom of speech and association (see May 16, 2012). [Public Law 112 81 pdf file; American Civil Liberties Union, 12/14/2012; Human Rights Watch, 12/15/2012; Salon, 12/15/2012]
Section 1022: Mandatory Military Custody for Non-US Citizen Members of Al-Qaeda - Section 1022 requires that those determined to be members of al-Qaeda or “an associated force” and who “participated in the course of planning or carrying out an attack or attempted attack against the United States or its coalition partners” be held in “military custody pending disposition under the law of war.” This section is somewhat less controversial than section 1021 as it is more specific and limited in scope, and contains an exemption for US citizens, such that section 1022 may be applied to US citizens, but is not required to be: (b)(1) “The requirement to detain a person in military custody under this section does not extend to citizens of the United States.” [Public Law 112 81 pdf file]
Obama Administration Insisted on Broad Detention Authority - According to Senators Levin and Lindsey Graham (R-SC), the Obama administration required that detention authorities be applicable to US citizens, including those arrested in the US. Levin says that “language which precluded the application of section 1031 [1021 in the final bill] to American citizens was in the bill we originally approved in the Armed Services Committee, and the administration asked us to remove the language which says that US citizens and lawful residents would not be subject to this section.” [Senate, 11/17/2011] Graham says: “The statement of authority I authored in 1031 [1021 in final bill], with cooperation from the administration, clearly says someone captured in the United States is considered part of the enemy force regardless of the fact they made it on our home soil. The law of war applies inside the United States not just overseas.” [Senate, 11/17/2011]
How Congress Votes - With President Obama having signaled he will sign the bill, the Senate votes 86-13 in favor, with one abstention. Six Democrats and six Republicans vote against it, along with Senator Bernie Sanders (I-VT). [Open Congress, 12/15/2011] The House votes 283-136 in favor of the bill, with 14 abstentions. Democrats are evenly divided, with 93 voting for the NDAA and 93 against. Republicans voting are overwhelmingly in favor: 190-43, almost four out of five. Obama will sign the NDAA into law by December 31, 2011 (see December 31, 2011). [Open Congress, 12/14/2011]
Fallout over Bill - The same day Congress votes to pass the bill, two senators who voted for it, Feinstein and Patrick Leahy (D-VT), introduce a bill to restrict presidential authority to indefinitely detain US citizens (see December 15, 2011). A poll that will be conducted shortly after the bill is passed finds that only one in four “likely voters” approve of it (see December 22-26, 2011). Less than six months after the bill is signed into law, a federal judge will issue a preliminary injunction barring enforcement under section 1021 (see May 16, 2012), in response to a lawsuit that will be filed by seven activists and journalists (see January 13, 2012).

Entity Tags: Bernie Sanders, George W. Bush, Dianne Feinstein, Carl Levin, Glenn Greenwald, Patrick J. Leahy, Barack Obama, Mark Udall, Human Rights Watch, American Civil Liberties Union

Timeline Tags: Civil Liberties

The logo of InfoCision, the telemarketing firm that received much of the ASWF monies.The logo of InfoCision, the telemarketing firm that received much of the ASWF monies. [Source: InfoCision]Presidential candidate Newt Gingrich (R-GA) has apparently exploited a loophole in campaign finance law that has allowed him to build what McClatchy News calls “a political money machine that raised $54 million over five years,” according to McClatchy reports. Gingrich has used “a supposedly independent political committee that collected unlimited donations” to “finance… a coast-to-coast shadow campaign that raised his profile and provided a launch pad for his presidential run.” Critics call the ASWF issue another aftereffect of the Citizens United decision (see January 21, 2010).
$54 Million over 5 Years - The Gingrich-supporting PAC, “American Solutions for Winning the Future” (ASWF) was closed down in July 2011. Organized as a so-called “527 group” (see 2000 - 2005 and June 30, 2000), the tax-exempt, “nonprofit” organization raised $28.2 million in the two-year period ending December 31, 2010, the last period for which McClatchy has data. The Center for Responsive Politics reports that ASWF raised almost double the amount garnered by the next closest 527. The organization raised some $54 million throughout its existence, from 2006 to July 2011. McClatchy has learned some of the details behind ASWF and is now revealing them to the public. The organization provided at least $8 million to pay for the chartered luxury jets that Gingrich used to fly back and forth around the nation for public appearances and campaigning for president. The jet charters occurred during the 2008 and 2012 presidential primaries.
Largely Financed by Billionaire, Corporate Donations - ASWF has accepted enormous cash donations from billionaires such as Sheldon Adelson, a Las Vegas casino owner, who has emerged as Gingrich’s primary benefactor. Adelson has given $7.65 million to ASWF, including a million-dollar startup contribution in 2006. According to an Adelson spokesperson, “he and Speaker Gingrich go back a number of years.” Adelson is a prominent supporter and financier of Israeli Prime Minister Benjamin Netanyahu, and like Gingrich holds far-right, aggressively territorial views about Israel. Gingrich has made provocative statements about Israel and the Palestinian people over the years, denying that the Palestinians are a separate people and declaring his support for Israel’s forced-settlement plans that have displaced many Palestinians. A Gingrich spokesman says Adelson and others merely gave to the organization because they agree with Gingrich’s views. Charlotte, North Carolina, real estate developer Fred Godley gave ASWF $1.1 million in 2007 and another $100,000 in 2009. Energy firms donated heavily to ASWF: Peabody Energy, the world’s largest private coal producer, and its chief lobbyist Fred Palmer gave ASWF $825,000. Arch Coal, the US’s second-largest coal company, gave $100,000. Oil and gas firm Devon Energy gave $400,000, as did American Electric Power Company and its CEO Michael Morris. Plains Exploration Company gave $200,000. The late Cincinnati billionaire Carl Lindner gave $690,000. Dallas real estate firm Crow Holdings gave $600,000. Minnesota broadcasting mogul Stanley Hubbard gave $385,000. Wisconsin businessman Terry Kohler gave $328,082. California businessman Fred Sacher gave $275,000. NASCAR president James France gave $264,000. Home Depot co-founder Bernie Marcus gave $250,000. Another Las Vegas casino owner, the late Frank Fertitta Jr., gave $250,000, along with his sons; together the three of them co-owned a casino and the Ultimate Fighting Championship sports league. Former CarMax and Circuit City chief Richard Sharp gave $150,000. Stock brokerage titan Charles Schwab gave $150,000. Cincinnati Reds owner Robert Castellini gave $146,000. Political science professor Larry Sabato says that in light of such enormous contributions, “there’s no way that any politician is going to deny you much of anything that you want.”
New Super PACs Supplanting ASWF - In place of ASWF, two new pro-Gingrich super PACs have formed to support Gingrich’s attempt to close the gap between himself and frontrunner Mitt Romney (R-MA) in the Republican primary.
'Diabolical Scheme' to 'Circumvent' Campaign Finance Law - Campaign expert Lawrence Jacobs calls Gingrich’s use of ASWF “clever,” and adds, “Looking back, and now seeing Gingrich as the frontrunner… it’s an ingenious, diabolical scheme to circumvent what’s left of the campaign finance regime.” Jacobs says of the organization: “The money wasn’t used literally to finance a campaign for a particular office. It was used for a general, over-time campaign to keep Gingrich alive politically—an enormously luxurious campaign operation to sustain his political viability for the right time to jump into the presidential race. It’s no accident that he’s popped in in 2012.” Jacobs says ASWF operated “right on the line” of legality. Sabato says ASWF played a key role in resuscitating Gingrich’s flagging political career. His term as speaker of the House ended in scandal and resignation, and his high-profile divorces and profligate personal and campaign spending had led many to assume that Gingrich’s political career was over. But Sabato says Gingrich used ASWF to create what he calls a new kind of informal candidacy, one that shows the inherent weakness of campaign finance laws that are supposed to ensure “nobody could give so much money that they would become too influential, too powerful.” ASWF was always nominally independent, as required by law, but in 2009 Gingrich ousted its board of directors and took the title of general chairman. Gingrich never formed a formal exploratory committee before declaring his candidacy for president. McClatchy observes, “None of his Republican presidential rivals, nor any other federal candidate for that matter, is known to have operated such a committee before formally declaring his or her candidacy.” Gingrich spokesperson R.C. Hammon says Gingrich did not begin considering a presidential campaign until April 2011, and all of his committee activities were “legitimate.” Hammond says: “The purpose of American Solutions was to advance an agenda of free enterprise and tri-partisan solutions. Those were the activities he was undertaking.” ASWF is just one of a network of political entities that Gingrich has created over the last 10 years. He has managed to enrich himself by charging lucrative fees for speeches, consulting for undisclosed health care industry firms, and selling historical documentaries and books. After the group was formed in the fall of 2006, Gingrich sent a letter to potential backers calling it a unique organization “designed to rise above traditional gridlocked partisanship” and to develop “breakthrough solutions to the most important issues facing this country.” Vin Weber, a former Minnesota congressman who served on ASWF’s board for two years, says the group “certainly helped build his path back into political prominence.” He adds, “They basically sent Newt around the country promoting American Solutions.” Weber is now supporting Romney for the presidency. He says that ASWF had “not gotten really up to speed in terms of programming” when he received a call, apparently in 2008, advising him that the board was being abolished. Gingrich then took over as the group’s general chairman.
Relatively Little Spent on Campaign Initiatives, Most Spent on Raising More Money - ASWF proposed a number of campaign and advertising initiatives that would appeal to conservative donors, including:
bullet a “Drill Now!” movement aimed at increasing US oil exploration;
bullet attempts to rally opposition to President Obama’s health care reform efforts;
bullet a campaign to fight climate change legislation that would call for reduced carbon emissions by industrial concerns.
But of $37.9 million raised from 2006 through 2009, the committee spent just $7.2 million on programs, according to its filings with the Internal Revenue Service. Most of the ASWF money was spent on telemarketers and direct-mail appeals to develop a loyal pool of wealthy contributors. InfoCision, an Ohio telemarketing firm that specializes in building lists of “small” donors, was paid some $30 million over the course of the organization’s existence, exhausting much of the money contributed. $17 million of that money was used to finance Gingrich’s travel. [McClatchy News, 12/19/2011; Think Progress, 12/19/2011]

Entity Tags: Bernie Marcus, Benjamin Netanyahu, Richard Sharp, R.C. Hammon, Plains Exploration Company, Sheldon Adelson, Stanley Hubbard, Terry Kohler, Vin Weber, American Electric Power Company, Barack Obama, American Solutions for Winning the Future, Willard Mitt Romney, Arch Coal, Newt Gingrich, Robert Castellini, McClatchy News, Michael Morris, Crow Holdings, Charles Schwab, Center for Responsive Politics, Carl Lindner, Devon Energy, Frank Fertitta Jr., Peabody Energy, Fred Palmer, Internal Revenue Service, InfoCision, James France, Fred Sacher, Larry J. Sabato, Fred Godley, Lawrence Jacobs

Timeline Tags: Civil Liberties, 2012 Elections

Representatives John Yarmuth (D-NY) and Walter Jones (R-NC) file a bill, the Yarmuth-Jones Disclose Act, that would amend the US Constitution to overturn the Citizens United ruling (see January 21, 2010) and take special-interest money out of American politics. The proposed amendment establishes that financial expenditures and in-kind contributions do not qualify as protected free speech under the First Amendment (see January 30, 1976, April 26, 1978, June 25, 2007, June 26, 2008, January 21, 2010, January 21, 2010, January 22, 2010, March 26, 2010, and December 12, 2011). It also makes Election Day—the first Tuesday in November—a legal holiday, and enables Congress to establish a public financing system that would serve as the sole source of funding for federal elections (see 1974, January 26, 2011 and After, June 27, 2011, and December 1, 2011). Yarmuth explains his proposal in the context of the Citizens United case, saying: “Corporate money equals influence, not free speech. The last thing Congress needs is more corporate candidates who don’t answer to the American people. Until we get big money out of politics, we will never be able to responsibly address the major issues facing American families—and that starts by ensuring our elections and elected officials cannot be bought by the well-off and well-connected.” Jones says in a statement: “If we want to change Washington and return power to the citizens of this nation, we have to change the way campaigns are financed. The status quo is dominated by deep-pocketed special interests, and that’s simply unacceptable to the American people.” Jones is one of the very few Republicans in Congress who is willing to advocate for campaign finance reform. It is unlikely the bill will pass the Republican-controlled House, and Senate Republicans would likely block it if it made it to that chamber. Amendments to the Constitution require a two-thirds vote in both chambers of Congress before being approved by three-fourths of state legislatures. [US House of Representatives, 12/20/2011; WFPL, 12/20/2011; Think Progress, 12/20/2011] This is not the first attempt to amend the Constitution to overturn Citizens United and regulate campaign financing (see September 20, 2011, November 23, 2010, November 1, 2011, and November 18, 2011).

Entity Tags: Walter Jones, 2012 Yarmuth-Jones Disclose Act, John Yarmuth

Timeline Tags: Civil Liberties

2012 Iowa caucuses logo.2012 Iowa caucuses logo. [Source: MediaBistro (.com)]As Republican voters in Iowa go to cast their votes for the party’s presidential nominee in statewide caucuses, spending by the various candidates in the state is at an all-time high, topping $16 million. Broken down by candidate, the spending on candidate advertising, voter drives, and other political activities is as follows:
bullet Governor Rick Perry (R-TX): $4.3 million from his campaign. Perry’s super PAC, Make Us Great Again, has spent $1.6 million.
bullet Representative Ron Paul (R-TX): $2.8 million from his campaign.
bullet Former Governor Mitt Romney (R-MA): $1.5 million from his campaign. His super PAC, Restore Our Future (see June 23, 2011 and January 3, 2012), has spent $2.8 million.
bullet Former Representative Newt Gingrich (R-GA): $980,000 from his campaign. His super PAC, Winning Our Future (see December 19, 2011), has spent $264,000.
bullet Former Senator Rick Santorum (R-PA): $30,000 from his campaign. His super PAC, the Red White and Blue Fund, has spent $530,000.
bullet Representative Michele Bachmann (R-MN): $180,000 from her campaign.
The super PAC expenditures in Iowa primary activities—at least $6 million—far outstrip the $1.5 million spent by outside groups in Iowa in 2004 and the $3.4 million spent in 2008. Spending in upcoming primaries in other states is predicted to be even higher. [NBC News, 1/3/2012; Think Progress, 1/3/2012] The day before the primaries, the New York Times writes a blistering op-ed, “The Slush Funds of Iowa,” decrying the “unrelenting arctic blast of campaign ads” featuring “constant negativity” from the various campaigns. The Times calls the super PACs behind most of the ads “essentially septic tanks into which wealthy individuals and corporations can drop unlimited amounts of money, which is then processed into ads that are theoretically made independently of the candidates.” The Times says that regardless of the pretense of independence both the super PACs and the candidates maintain, “the PACs are, in fact, a vital part of the campaigns’ strategy.” The editorial cites an earlier Times report that cited Romney as an example, comparing the upbeat, family-oriented ads aired in Iowa by the Romney campaign with the relentless negative ads aired by his PAC, and saying that Romney “has effectively outsourced his negative advertising to a group that has raised millions of dollars from his donors to inundate his opponents with attacks.” The editorial notes, “Mr. Romney’s name is never mentioned [in the negative ads], and few [Iowa] viewers will realize that the ad’s producers are all close associates of his who worked on his campaign four years ago.” [New York Times, 1/2/2012]

Entity Tags: Make Us Great Again, Michele Bachmann, Newt Gingrich, James Richard (“Rick”) Perry, New York Times, Red, White and Blue Fund, Winning Our Future, Restore Our Future, Rick Santorum, Willard Mitt Romney, Ron Paul

Timeline Tags: Civil Liberties, 2012 Elections

Sheldon Adelson at a celebration of the opening of his Sands Cotai Central casino in Macau, April 2012.Sheldon Adelson at a celebration of the opening of his Sands Cotai Central casino in Macau, April 2012. [Source: Aaron Tam / AFP / Getty Images / ProPublica]Casino owner Sheldon Adelson, one of America’s wealthiest individuals, gives $5 million to a super PAC acting on behalf of Republican presidential candidate Newt Gingrich. Adelson’s fortune comes from casinos he owns in Las Vegas and Asia. Adelson has let it be known that he intends to donate much more during the campaign season, both in the primaries and in the general election, when a Republican will challenge President Obama for the presidency. The Washington Post calls Adelson’s donation “the latest in an avalanche of campaign cash flooding the presidential season to independent groups known as super PACs.” Adelson donates the money to Winning Our Future, a super PAC whose predecessor, American Solutions for Winning the Future (ASWF), is plagued with allegations of misconduct and illicit involvement by Gingrich (see December 19, 2011). ASWF was also a benefactor of Adelson’s donations, both monetary and in Adelson’s permission for Gingrich to use his personal aircraft. According to a person close to Adelson, the billionaire is willing to spend at least $5 million more, either on Gingrich or the Republican nominee for president. The source adds that Adelson wants to keep Gingrich competitive in the primary race at least through the January 21 South Carolina primary. If Gingrich does well in South Carolina, as he is predicted to, the source says Gingrich’s super PAC may well receive another hefty donation. In December 2011, Adelson denied saying he planned on donating $20 million to the organization. Adelson and his wife Miriam have known Gingrich since the mid-1990s, when Adelson was locked in disputes with labor unions and government regulators over his construction of the massive Venetian casino in Las Vegas. Like Gingrich, Adelson is extremely conservative on the subject of Israel. Gingrich, buoyed with super PAC donations in recent weeks, did well in the Iowa caucuses (see January 3, 2012) against frontrunner Mitt Romney, whose own super PAC, Restore Our Future, has a stable of wealthy donors keeping pro-Romney and anti-Gingrich ads on the airwaves (see June 23, 2011 and January 3, 2012). Reportedly, Romney’s supporters begged Adelson not to make his contribution to Gingrich, and instead to let Gingrich’s campaign wither without Adelson’s support. Gingrich’s campaign intends to use much of the donation for airtime in South Carolina, and to air portions of a film documenting Romney’s time as CEO of Bain Capital, a private equity firm that oversaw the bankruptcy and dissolution of numerous small businesses and corporations. Gingrich claims Adelson is acting entirely on his own, saying, “If he wants to counterbalance Romney’s millionaires, I have no objection to him counterbalancing Romney’s millionaires.” [Washington Post, 1/7/2012; New York Times, 1/9/2012] Slate columnist Will Oremus observes: “There’s no question that Gingrich has been paid for by Sheldon Adelson. It’s up to voters to decide whether he’s been bought.” [Slate, 1/27/2012]

Entity Tags: Newt Gingrich, Bain Capital, American Solutions for Winning the Future, Miriam Adelson, Winning Our Future, Will Oremus, Restore Our Future, Willard Mitt Romney, Washington Post, Sheldon Adelson, Barack Obama

Timeline Tags: Civil Liberties, 2012 Elections

The Republican National Committee (RNC) files a court brief calling the federal ban on direct corporate donations to candidates unconstitutional, and demanding it be overturned. Such direct donations are one of the few restrictions remaining on wealthy candidates wishing to influence elections after the 2010 Citizens United decision (see January 21, 2010). The brief is in essence an appeal of a 2011 decision refusing to allow such direct donations (see May 26, 2011 and After). The RNC case echoes a request from Senator Mike Lee (R-UT) that he be allowed to form and direct his own super PAC (see November 23, 2011), and recent remarks by Republican presidential frontrunner Mitt Romney (R-MA) calling for donors to be allowed to contribute unlimited amounts to candidates (see December 21, 2011). The RNC brief claims: “Most corporations are not large entities waiting to flood the political system with contributions to curry influence. Most corporations are small businesses. As the Court noted in Citizens United, ‘more than 75 percent of corporations whose income is taxed under federal law have less than $1 million in receipts per year,’ while ‘96 percent of the 3 million businesses that belong to the US Chamber of Commerce have fewer than 100 employees.’ While the concept of corporate contributions evokes images of organizations like Exxon or Halliburton, with large numbers of shareholders and large corporate treasuries, the reality is that most corporations in the United States are small businesses more akin to a neighborhood store. Yet § 441b does not distinguish between these different types of entities; under § 441b, a corporation is a corporation. As such, it is over-inclusive.” Think Progress legal analyst Ian Millhiser says the RNC is attempting to refocus the discussion about corporate contributions onto “mom and pop stores” and away from large, wealthy corporations willing to donate millions to candidates’ campaigns. If the court finds in favor of the RNC, Millhiser writes: “it will effectively destroy any limits on the amount of money wealthy individuals or corporation[s] can give to candidates. In most states, all that is necessary to form a new corporation is to file the right paperwork in the appropriate government office. Moreover, nothing prevents one corporation from owning another corporation. For this reason, a Wall Street tycoon who wanted to give as much as a billion dollars to fund a campaign could do so simply by creating a series of shell corporations that exist for the sole purpose of evading the ban on massive dollar donations to candidates” (see October 30, 2011). [United States of America v. Danielcytk and Biagi, 1/10/2012 pdf file; Think Progress, 1/11/2012] The RNC made a similar attempt in 2010, in the aftermath of Citizens United; the Supreme Court refused to hear an appeal of its rejection. [New York Times, 5/3/2010; Tom Goldstein, 5/14/2012] Over 100 years of US jurisprudence and legislation has consistently barred corporations from making such unlimited donations (see 1883, 1896, December 5, 1905, 1907, June 25, 1910, 1925, 1935, 1940, March 11, 1957, February 7, 1972, 1974, May 11, 1976, January 30, 1976, January 8, 1980, March 27, 1990, March 27, 2002, and December 10, 2003). Shortly after the Citizens United ruling, RNC lawyer James Bopp Jr. confirmed that this case, like the Citizens United case and others (see Mid-2004 and After), was part of a long-term strategy to completely dismantle campaign finance law (see January 25, 2010).

Entity Tags: Republican National Committee, Halliburton, Inc., ExxonMobil, Ian Millhiser, Michael Shumway (“Mike”) Lee, Willard Mitt Romney, US Supreme Court, US Chamber of Commerce, James Bopp, Jr

Timeline Tags: Civil Liberties, 2012 Elections

Bradley A. Smith, the chairman of the Center for Competitive Politics (CCP) and a former commissioner and chairman of the Federal Election Commission (FEC) during the second Bush administration, writes that the Citizens United decision (see January 21, 2010) and the subsequent flood of corporate money into the political campaign continuum (see January 21, 2010, January 21, 2010, January 21-22, 2010, January 21, 2010, January 21, 2010, January 21, 2010, March 26, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, June 23, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 23, 2011, December 1, 2011, January 3, 2012, January 6, 2012, and January 10, 2012) are good for American politics. [US News and World Report, 1/13/2012] According to a 2008 press report, Smith co-founded the CCP in 2006 in order to roll back campaign finance regulations, claiming that virtually any regulation is bad for politics. Smith has refused to reveal the financial sponsors that gave him the “seed money” to start the organization. Smith helped win the landmark SpeechNow case (see March 26, 2010) that allowed for the creation of “super PACs,” the organizations that are primarily responsible for flooding the campaign with corporate money. According to law professor Richard Hasen, Smith and the CCP have worked diligently to bring cases like the SpeechNow case to the Supreme Court so that the conservative-dominated Court can “knock them out of the park.” [Politico, 8/12/2008] Smith now writes: “Super PACs are not an evil tolerated under the First Amendment—they are what the First Amendment is all about. A super PAC, after all, is simply a group of citizens pooling resources to speak out about politics.” He claims that super PACs merely “leveled the playing field” after Democrats and Democratic-supporting organizations consistently outfunded Republican campaigns during elections. Super PACs have kept the presidential campaigns of candidates such as Rick Santorum (R-GA—see February 16-17, 2012) and Newt Gingrich (see December 19, 2011 and January 6, 2012) alive. Smith predicts that Democrats will easily outspend Republicans again once the presidential primary campaign concludes (see Around October 27, 2010), November 1, 2010 and May 5, 2011), but says, “Super PACs, however, will help level the field.” Smith claims that super PACs “disclose all of their expenditures and all of their donors,” and claims that any information to the contrary is wrong, as it is “confusing super PACs with traditional nonprofits such as the NAACP or the Sierra Club.” He concludes: “Super PACs are helping to shatter the old, established order, create more competition, and break the hold of special interests lobbyists—big business actually joined the ‘reform’ community in opposing super PACs in court. Are super PACs harming politics? Of course not. How odd that anyone would think that more political speech was bad for democracy.” [US News and World Report, 1/13/2012] The Citizens United decision specifically allows for donors to super PACs to remain anonymous, despite Smith’s claims to the contrary (see January 27-29, 2010, July 26, 2010, July 26-27, 2010, September 13-16, 2010, September 21 - November 1, 2010, Mid-October 2010, Around October 27, 2010, April 20, 2011, April 21, 2011 and After, July 12, 2011, and November 18, 2011). Republicans have fought to preserve that anonymity (see July 26-27, 2010, May 26, 2011, July 15, 2011, and July 20, 2011). Smith is correct in saying that traditional nonprofit groups must disclose their donors, though many are apparently failing to do so (see October 12, 2010).

Entity Tags: Rick Santorum, Center for Competitive Politics, Bradley A. (“Brad”) Smith, Newt Gingrich, Richard L. Hasen

Timeline Tags: Civil Liberties, 2012 Elections

Former Republican presidential candidate Tim Pawlenty (R-MN), now a supporter of Republican frontrunner Mitt Romney (R-MA), tells a reporter from the liberal news Web site Think Progress that the 2010 Citizens United decision allowing donors to contribute unlimited amounts of money to independent groups supporting individual candidates (see January 21, 2010) is “leveling the playing field” in politics. Reporters Scott Keyes and Travis Waldron call Pawlenty’s comment “a turn of phrase that would give George Orwell satisfaction.” Since the decision, a relatively small number of wealthy corporations and individuals have transformed US politics with their multi-million dollar donations (see January 21-22, 2010, March 26, 2010, August 2, 2010, September 13-16, 2010, September 21 - November 1, 2010, September 28, 2010, October 2010, Around October 27, 2010, November 1, 2010, (May 4, 2011), May 5, 2011, July 12, 2011, August 4, 2011, October 27, 2011, October 30, 2011, December 1, 2011, December 19, 2011, January 3, 2012, and January 6, 2012). But Pawlenty seemingly believes that campaign finance laws are still too restrictive, and says he believes that donors should be able to make unlimited donations directly to candidates (see December 21, 2011 and January 10, 2012) instead of making those donations to third-party groups. Pawlenty refuses to say the Citizens United decision will help Romney defeat President Obama in the November general election, and instead says that the decision helps “free speech” (see January 21, 2010 and January 22, 2010). Pawlenty continues: “Every time they try to contain speech, it pops up somewhere else. This is just me talking personally, I’m not speaking for Mitt’s position on this. The better position is to allow full and free speech in whatever form, but have instant disclosure.” Keyes asks, “You’re talking completely unlimited donations?” and Pawlenty responds: “We have that now, it’s just a question of where the money gets pushed to the third party groups. This leveling the playing field to some extent because in the past, unions in particular (see June 25, 1943 and June 23, 1947) and other interest groups had an advantage in the old system. Now the playing field’s being leveled a little bit.” He clarifies: “Right now, with super PACs and third party groups, there’s essentially unlimited giving to various aligned super PACs and groups. The point is, the United States Supreme Court has spoken. They have said we’re going to have free speech as it relates to political contributions. The First Amendment should be respected and protected, but I think we should also have full disclosure.” Keyes and Waldron write that billionaire corporate owners such as the Koch brothers (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) have pledged staggering amounts of money to defeat Obama in the November elections, and conclude, “This massive influx of unregulated campaign spending will almost certainly be the new normal as wealthy individuals and corporations find new ways to influence elections, helped in large part by the now-two year old Citizens United decision.” [Think Progress, 1/21/2012]

Entity Tags: Travis Waldron, Barack Obama, US Supreme Court, Scott Keyes, Willard Mitt Romney, Tim Pawlenty

Timeline Tags: Civil Liberties, 2012 Elections

Nevada casino owner and billionaire Sheldon Adelson, who has already given an unprecedented $5 million to a super PAC supporting Republican presidential candidate Newt Gingrich (R-GA—see January 6, 2012), has his wife Miriam donate another $5 million to Gingrich’s super PAC, Winning Our Future. That organization spent over $6 million on “independent expenditures” in the recent South Carolina primary, mostly on attack ads against primary opponent Mitt Romney (R-MA). Winning Our Future outspent all other Republican super PACs involved in that primary, whose expenditures totaled some $5.3 million. The new $5 million contribution will likely go to Gingrich’s campaign efforts in Florida, which is seen as a “must-win” state for Gingrich. Other groups have already spent some $6.4 million in Florida. Think Progress reporter Josh Israel writes: “[T]his contribution will allow the pro-Gingrich super PAC to instantly achieve almost immediate parity.… At this pace, the Adelson family could outspend Gingrich’s competition by themselves.” The Adelson funds come from a joint account; Sheldon Adelson signed the first check and Miriam Adelson signs the second. [Los Angeles Times, 1/23/2012; Think Progress, 1/23/2012]

Entity Tags: Newt Gingrich, Josh Israel, Sheldon Adelson, Miriam Adelson, Winning Our Future

Timeline Tags: Civil Liberties, 2012 Elections

Republican candidates and campaign financiers are beginning to advocate for unlimited donations by wealthy contributors directly to presidential campaigns, using language that is remarkably similar to one another, says Think Progress reporter Scott Keyes. While most Americans disagree with letting so much unregulated and unaccountable money into politics (see January 23, 2012), advocates of direct donations apparently believe that current campaign finance laws, even after the Citizens United ruling (see January 21, 2010), are still too restrictive. Keyes writes, “The language used by different high-ranking Republicans is so similar that it suggests a certain level of message-coordination on the subject.” He notes a recent statement by Republican presidential frontrunner Mitt Romney (R-MA—see December 21, 2011), a similar statement by former Republican presidential candidate and current Romney supporter Tim Pawlenty (R-MN—see January 21, 2012), and a January 27 statement by Republican financier Fred Malek (see Mid-October 2010), who told him, “I would favor unlimited contributions to candidates with full disclosure.” Keyes writes that although Romney, Pawlenty, and Malek couple their calls for direct donations with calls for disclosure and transparency, Republicans have consistently voted against measures that would actually bring transparency to campaign finance (see July 26-27, 2010). [Think Progress, 1/31/2012] The Republican National Committee (RNC) has a lawsuit pending that would legalize unlimited donations directly to candidates (see January 10, 2012).

Entity Tags: Scott Keyes, Fred Malek, Tim Pawlenty, Republican National Committee, Willard Mitt Romney

Timeline Tags: Civil Liberties

The Obama campaign reverses its previous policy and begins asking major contributors to donate to a super PAC, Priorities USA, that supports President Obama’s re-election. Previously, the Obama campaign, and Obama himself, had been reluctant to ask for donations for the PAC. Since 2010, Democrats have been worried about the effect of the Republican super PACs on the presidential campaign as well as Congressional and even state and local races, but have been divided on how to respond to the flood of money in support of their Republican opponents (see August 2, 2010, September 13-16, 2010, September 24, 2010, October 18, 2010, Around October 27, 2010, Mid-November 2010, August 4, 2011, October 27, 2011, December 1, 2011, January 3, 2012, and January 6, 2012). Obama campaign spokesman Jim Messina says that Republican-supporting super PACs are collectively expected to spend “half a billion dollars, above and beyond what the Republican nominee and party are expected to commit to try to defeat the president. With so much at stake, we can’t allow for two sets of rules in this election whereby the Republican nominee is the beneficiary of unlimited spending and Democrats unilaterally disarm.… We’re not going to fight this fight with one hand tied behind our back.” Messina also says that Obama is strongly against such campaign finance practices, and supports strong action “by constitutional amendment, if necessary” to once again restrict campaign donations from the wealthy. (In January 2012, Politico reported that Obama was completely opposed to the idea of super PACs, including his own—see January 18, 2012.) Joe Pounder of the Republican National Committee issues a statement harshly critical of the decision, which reads in part, “Yet again, Barack Obama has proven he will literally do anything to win an election, including changing positions on the type of campaign spending he called nothing short of ‘a threat to our democracy.’” So far, super PACs supporting Republican candidates have raised over $50 million, putting the Obama campaign at a distinct disadvantage. New York Democratic fundraiser Robert Zimmerman observes: “It’s hard to pass the plate for super PAC money while Democratic leaders have been preaching about the sins of it. But the reality is, it is essential in 2012.” Campaign and White House officials will appear at fundraisers for Priorities USA, though neither the president nor the first lady will make such appearances. Super PACs, created by the Citizens United decision (see January 21, 2010) and a lower court decision in the wake of that ruling (see March 26, 2010), have come to dominate US election activities, particularly in the area of television, radio, and print advertising. Shortly after the Citizens United decision, Obama criticized it during his State of the Union address, saying: “I don’t think American elections should be bankrolled by America’s most powerful interests or, worse, by foreign entities. They should be decided by the American people, and I’d urge Democrats and Republicans to pass a bill that helps correct some of these problems” (see January 27-29, 2010). However, Congress has been unable to rein in the super PACs, with the most visible effort, Congressional Democrats’ DISCLOSE Act, being successfully filibustered by Senate Republicans (see July 26-27, 2010). CBS News political expert John Dickerson says the Obama campaign has no choice but to emulate the Republicans: “What the Obama camp saw is these fundraising numbers from last year. The Republicans were able to raise so much money. They also saw what Romney was able to do to Newt Gingrich in Florida, just absolutely bury him under ads, and they started to worry about what this was going to mean for the president in the general election.” Dickerson says that with the public perception of Republican frontrunner Mitt Romney (R-MA) being so negative, the ads in support of Romney will undoubtedly be quite negative against Obama. Dickerson expects the Obama campaign to retaliate in kind, saying: “Some of the things that Romney had to do to combat those [primary] attacks, he had to get a little bit more negative, seem a little bit more unpleasant as a candidate.… That’s another reason why [Obama] had to make this decision on super PACs: that this is going to be ugly, it’s going to be on the airwaves, and they need to be able to compete.” [New York Times, 2/6/2012; CBS News, 2/7/2012] The Obama campaign’s announcement comes on the same day as news that the Romney campaign has benefited from $1.22 million in funding from oil, gas, and coal corporations (see February 6, 2012).

Entity Tags: Priorities USA Action, Barack Obama, 2012 Obama presidential election campaign, Jim Messina, John Dickerson, Willard Mitt Romney, Joe Pounder, Robert Zimmerman

Timeline Tags: Civil Liberties, 2012 Elections

Foster Friess.Foster Friess. [Source: New York Magazine]Foster Friess, a multi-millionaire who is the chief supporter of a “super PAC” supporting the presidential candidacy of Rick Santorum (R-PA), weighs in on the controversy surrounding new federal mandates for providing birth control in employers’ health care coverage. Friess dismisses the controversy by suggesting that if women just kept their legs closed, they would not need contraception. In an interview with MSNBC’s Andrea Mitchell, Friess is asked if Santorum’s rigid views on sex and social issues (see April 7, 2003, April 23, 2003 and After, January 2011, January 7, 2011, October 18, 2011 and After, June 2011, September 22, 2011, January 1-3, 2012, January 2, 2012 and January 4, 2012) would hurt his chances in the general election. Friess responds by saying: “I get such a chuckle when these things come out. Here we have millions of our fellow Americans unemployed; we have jihadist camps being set up in Latin America, which Rick has been warning about; and people seem to be so preoccupied with sex. I think it says something about our culture. We maybe need a massive therapy session so we can concentrate on what the real issues are. And this contraceptive thing, my gosh, it’s [so] inexpensive. Back in my day, they used Bayer aspirin for contraceptives. The gals put it between their knees and it wasn’t that costly.” Mitchell says, “Excuse me, I’m just trying to catch my breath from that, Mr. Friess, frankly.” Think Progress’s Alex Seitz-Wald writes: “Given that [a]spirin is not a contraceptive, Friess seems to be suggesting that women keep the pill between their knees in order to ensure the[ir] legs stay closed to prevent having sex. Conspicuously, Friess doesn’t put the same burden on men.” [Think Progress, 2/16/2012; National Public Radio, 2/16/2012] Friess’s comment draws quick reaction from a number of sources, with many women’s groups expressing their outrage. Santorum quickly distances himself from the comment, calling it a “bad joke” and implying that the media is trying to smear him with it: “When you quote a supporter of mine who tells a bad off-color joke and somehow I am responsible for that, that is ‘gotcha,’” he tells a CBS News reporter. [Washington Post, 2/17/2012] Fox News’s late-night political humor show, Red Eye, features guest host Andy Levy sarcastically speculating that Friess’s joke is part of a “guerrilla marketing” scheme by the Bayer Corporation, which manufactures Bayer aspirin. Guest Anthony Cumia dismisses Friess’s comment by saying that Friess is “an old guy, he’s got old jokes.” [Mediaite, 2/17/2012] The next day, Friess issues an apology on his blog that reads: “To all those who took my joke as modern day approach I deeply apologize and seek your forgiveness. My wife constantly tells me I need new material—she understood the joke but didn’t like it anyway—so I will keep that old one in the past where it belongs.” New York Magazine’s Dan Amira writes, perhaps sarcastically, that he does not understand why either Santorum or Friess apologized, as he believes Friess stated Santorum’s position on sex and birth control rather clearly. “‘Hold an aspirin between your knees’ is just a more colorful way of saying, ‘just keep your legs closed,’ which is tantamount to ‘just don’t have sex,’” Amira writes. “It’s abstinence, pure and simple. Which is exactly what Santorum advocates. He’s said that unless you’re trying to procreate, you shouldn’t be having sex, and therefore, contraception is ‘not okay.’ He has promised to make this argument to the American people as president. As far we can tell, the only difference between Friess’s bad contraception joke and Santorum’s actual contraception beliefs is an aspirin.” [New York Magazine, 2/17/2012; Foster Friess, 2/17/2012] Friess is often described in the press as a “billionaire,” but both Friess and Forbes magazine say that appellation is inaccurate. [Forbes, 2/8/2012]

Entity Tags: Andrea Mitchell, Alex Seitz-Wald, Fox News, Rick Santorum, Dan Amira, Foster Friess, Andy Levy, Anthony Cumia

Timeline Tags: US Health Care, 2012 Elections

Bradley A. Smith, the chairman of the Center for Competitive Politics (CCP) and a former commissioner and chairman of the Federal Election Commission (FEC) during the George W. Bush administration, writes a second editorial for US News and World Report defending “super PACs,” the “independent” political entities responsible for infusing millions of dollars into the political campaign system. Smith wrote an editorial in January 2012 defending super PACs, claiming they are the direct outgrowth of First Amendment free-speech rights and are actually good for the campaign system (see January 13, 2012). However, as in his first editorial, Smith makes a number of false claims to bolster his arguments. Such organizations were created in the aftermath of the Supreme Court’s 2010 Citizens United decision (see January 21, 2010) and the following SpeechNow.org decision (see March 26, 2010). He notes, correctly, that until 1974 there were no federal restrictions on super PACs, apparently referring to that year’s amendments to the Federal Election Campaign Act (see 1974), though he fails to note that such organizations did not exist until after the SpeechNow decision. He claims that “[t]here is no evidence that super PACs have led to a greater percentage of negative ads” than in earlier presidential campaigns, though he cites no evidence to that effect. He also claims, as he did in the first editorial, that it is false to claim super PACs “spend ‘secret’ money. This is just not true. By law, super PACs are required to disclose their donors. There are groups that have never had to disclose their donors, non-profits such as the Sierra Club, Planned Parenthood, the NAACP, and the NRA. If you want more disclosure, super PACs are a step forward.” Unfortunately, the Citizens United decision specifically allows donors to super PACs to remain anonymous, despite Smith’s claims to the contrary (see January 27-29, 2010, July 26, 2010, July 26-27, 2010, September 13-16, 2010, September 21 - November 1, 2010, Mid-October 2010, Around October 27, 2010, April 20, 2011, April 21, 2011 and After, July 12, 2011, and November 18, 2011). Republicans have fought to preserve that anonymity (see July 26-27, 2010, May 26, 2011, July 15, 2011, and July 20, 2011). As in the first editorial, Smith is correct in saying that traditional nonprofit groups must disclose their donors, though many are apparently failing to do so (see October 12, 2010). He also claims that super PACs increase competition—“level the playing field,” as he wrote in the first editorial—by allowing Republican candidates to equal the spending of their Democratic opponents. In reality, Republicans have outstripped Democrats in outside, super PAC spending since the Citizens United decision (see Around October 27, 2010, November 1, 2010, and May 5, 2011). Smith bolsters his claim by citing direct campaign spending as offsetting “independent” super PAC spending, such as in the 2010 US House race involving incumbent Peter DeFazio (D-OR), who won re-election even after a $500,000 super PAC-driven effort on behalf of his challenger. DeFazio, Smith claims, “outspent his opponent by a sizable margin and won. Still, for the first time in years he had to campaign hard for his constituents’ support. That’s a good thing.” He cites the presidential campaigns of Republican contenders Newt Gingrich (R-GA—see December 19, 2011 and January 6, 2012) and Rick Santorum (R-PA—see February 16-17, 2012), which have relied on the contributions of a very few extraordinarily wealthy contributors to keep their candidacies alive against the frontrunner Mitt Romney (R-MA), whose own super PAC funding is extraordinary (see June 23, 2011). And, he writes, super PAC spending “improves voter knowledge of candidates and issues. Indeed, political ads are frequently a better source of information for voters than news coverage.” The most important benefit of the two Court decisions and the subsequent influx of corporate money into the US election continuum (see January 21, 2010, January 21, 2010, January 21-22, 2010, January 21, 2010, January 21, 2010, January 21, 2010, March 26, 2010, April 5, 2010, September 13-16, 2010, September 21 - November 1, 2010, October 2010, Mid-October 2010, October 18, 2010, Around October 27, 2010, June 23, 2011, July 12, 2011, August 4, 2011, October 27, 2011, November 23, 2011, December 1, 2011, January 3, 2012, January 6, 2012, January 10, 2012, and January 23, 2012), he writes, “is that they get government out of the business of regulating political speech. Who would say that you can’t spend your own time and money to state your own political beliefs? Vindicating that fundamental First Amendment right is good for democracy.” [US News and World Report, 2/17/2012]

Entity Tags: Newt Gingrich, Bradley A. (“Brad”) Smith, Center for Competitive Politics, Peter DeFazio, Federal Election Campaign Act of 1972, Willard Mitt Romney, Federal Election Commission, US Supreme Court

Timeline Tags: Civil Liberties

Kenneth Griffin.Kenneth Griffin. [Source: Start a Hedge Fund (.com)]Billionaire hedge fund investor Kenneth Griffin tells a Chicago reporter that he does not believe the extraordinarily wealthy wield enough political influence in America, and says that they must step up to stop America’s “drift” towards Soviet-style “socialism.” Griffin, alone and in conjunction with his wife Anne, has given $150,000 to Restore Our Future, the super PAC that supports Mitt Romney (see June 23, 2011). He has also given over $560,000 to the Republican Governors Association and $300,000 to American Crossroads, the advocacy organization founded by Republican strategists Ed Gillespie and Karl Rove. The Griffins have been heavy Republican donors in previous election cycles, and have given around $1.5 million to Americans for Prosperity (AFP—see Late 2004), the “astroturf” lobbying and advocacy organization founded and sponsored by the billionaire oil magnates Charles and David Koch. Of his contributions to AFP, he explains: “Charles and David Koch are huge advocates for free markets (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). I have a tremendous respect for their intellectual and financial commitment to embracing a set of economic policies that will give us global competitiveness.… I share their fundamental belief that economic freedom is core to the ethos of our country. It’s the idea that any person can pursue their dreams, whether it’s starting a business or who they choose to work for.” Asked, “Do you think the ultrawealthy have an inordinate or inappropriate amount of influence on the political process?” Griffith replies: “I think they actually have an insufficient influence. Those who have enjoyed the benefits of our system more than ever now owe a duty to protect the system that has created the greatest nation on this planet. And so I hope that other individuals who have really enjoyed growing up in a country that believes in life, liberty, and the pursuit of happiness—and economic freedom is part of the pursuit of happiness—[I hope they realize] they have a duty now to step up and protect that.… At this moment in time, these values are under attack. This belief that a larger government is what creates prosperity, that a larger government is what creates good [is wrong]. We’ve seen that experiment. The Soviet Union collapsed. China has run away from its state-controlled system over the last 20 years and has pulled more people up from poverty by doing so than we’ve ever seen in the history of humanity. Why the US is drifting toward a direction that has been the failed of experiment of the last century, I don’t understand. I don’t understand.” Asked if he believes he should continue to be allowed to make unlimited donations on behalf of candidates (see January 21, 2010), he answers: “In my opinion, absolutely. Absolutely. The rules that encourage transparency around that are really important.… My public policy hat says transparency is valuable. On the flip side, this is a very sad moment in my lifetime. This is the first time class warfare has really been embraced as a political tool. Because we are looking at an administration that has embraced class warfare as being politically expedient, I do worry about the publicity that comes with being willing to both with my dollars and, more importantly, with my voice to stand for what I believe in (see July 20, 2011).… I live in financial services, and every bank in the United States is really under the thumb of the government in a way it’s never been before. And that’s really worrisome to me, as someone who’s willing to say, ‘Wait, we need to step back and try to push government outside the realm of every dimension of our lives.’” [Think Progress, 3/10/2012; Chicago Tribune, 3/11/2012]

Entity Tags: David Koch, American Crossroads, Americans for Prosperity, Charles Koch, Republican Governors Association, Willard Mitt Romney, Kenneth Griffin, Anne Griffin, Restore Our Future

Timeline Tags: Civil Liberties, 2012 Elections

Senator John McCain (R-AZ), the co-author of the 2002 Bipartisan Campaign Reform Act (BCRA—see March 27, 2002), criticizes the Supreme Court’s 2010 Citizens United ruling that gutted the BCRA and allows corporations and labor unions to make unlimited contributions to election and campaign activities (see January 21, 2010). In a panel discussion, McCain calls the ruling “a combination of arrogance, naivete, and stupidity, the likes of which I have never seen.” He goes on to predict scandals as a result of the ruling enabling unlimited corporate contributions and a lack of disclosure surrounding those contributions (see October 2010, June 23, 2011, October 30, 2011, and December 19, 2011), saying: “I promise you this. I promise you there will be huge scandals… because there’s too much money washing around, too much of it… we don’t know who, who contributed it, and there is too much corruption associated with that kind of money. There will be major scandals.” Asked if he intends to give up on passing campaign reform legislation, he answers: “No. But I’ve got to wait until we think that can pass legislation. And I’m not sure right now, frankly, that we could get it passed.” The next day, Josh Israel of the liberal news Web site Think Progress notes that McCain is somewhat responsible for the inability of Congress to pass meaningful campaign finance legislation. He refused to vote for the Democratically-sponsored DISCLOSE Act (see July 26-27, 2010), decrying it as “a bailout for the unions.” Had McCain voted with Senate Democrats to end the Senate Republican filibuster against the DISCLOSE Act, the bill could have been brought to the floor for an up or down vote. Israel calls McCain’s “grumbling” about campaign finance regulation “little more than grandstanding.” [Think Progress, 3/28/2012]

Entity Tags: DISCLOSE Act of 2010, Bipartisan Campaign Reform Act of 2002, US Supreme Court, John McCain, Josh Israel

Timeline Tags: Civil Liberties

Columnist Adam White, writing for the conservative Weekly Standard, lambasts a recent article by the New Yorker’s Jeffrey Toobin about the internal decision-making process behind the 2010 Citizens United decision (see January 21, 2010 and May 14, 2012). Most publications describe the decision as allowing corporations and labor unions to spend money freely in campaigns, but White defines it differently, calling it an affirmation of “a corporation’s First Amendment right to spend money on independent speech on political issues, even when that speech criticizes candidates for office” (see January 21, 2010, January 22, 2010, and February 2, 2010). Law professors Tom Goldstein and Jonathan Adler have found some “spin” in Toobin’s account of events (see May 14, 2012), and law professor Richard Hasen has asked that a draft dissent highly critical of the decision and its methodology be made public to shed light on Toobin’s narrative (see May 14-16, 2012). However, White goes significantly further than any of the professors in tarring Toobin’s article, and in some instances Toobin himself. White writes flatly that everyone outside of “Toobin’s base,” presumably meaning liberals who comprise “Chief Justice [John] Roberts’s critics,” is “skeptical” of the article, and cites Goldstein and National Review columnist Ed Whelan (see May 15-17, 2012) as examples of those presumed skeptics who have “poured cold water” on the story. According to White, Toobin “front-load[ed] his story with easily disprovable mischaracterizations of the case” that [e]ven a cursory review of the case’s briefs, and contemporary news coverage, disproves Toobin’s thesis” of Roberts using a narrowly drawn case to revamp and invalidate most of US campaign finance law. White writes that Toobin’s characterization of the narrow focus of the case is wrong: “The First Amendment stakes were well known, and much discussed, in the run-up to oral argument.” He cites the New York Times editorial published at the time of the first arguments, in March 2009 (see March 23, 2009), warning that if the Court ruled in favor of Citizens United, “it would create an enormous loophole in the law and allow corporate money to flood into partisan politics in ways it has not in many decades. It also would seriously erode the disclosure rules for campaign contributions.” He also notes that respected court reporter Lyle Denniston warned before the oral arguments that the Citizens United case threatened to deliver “a sweeping rejection of Congressional authority to regulate campaign spending by corporations.” Toobin himself made some of the same arguments on CNN the day of the arguments, White notes. He calls Toobin’s version of events in the article a “clumsy fictionalization of the case” designed to vilify Roberts. He also questions Toobin’s characterization of the first arguments from Citizens United (CU) lawyer Theodore Olson, going considerably further than either Goldstein or Adler in accusing Toobin of fundamentally misrepresenting Olson’s original, narrowly focused case. According to White, Olson’s opening argument claimed that the restriction being challenged by CU was “unconstitutional as applied to the distribution of Citizens United’s documentary film through video on demand… [it] plainly exceeds Congress’s sharply limited authority to abridge the freedom of speech.” White claims that Olson cited First Amendment grounds in a portion of the arguments not reported by Toobin, and quotes from Olson’s argument; that quote describes Olson’s citation of the 2007 case Wisconsin Right to Life (WRTL—see Mid-2004 and After and June 25, 2007), which indeed used First Amendment grounds for its successful positioning, and quotes Olson as saying the WRTL decision “errs on the side of permitting the speech, not prohibiting the speech.” White accuses Toobin of deliberately misrepresenting Olson’s argument to “advanc[e] his own anti-Roberts narrative.” White is unable to check the accuracy of Toobin’s behind-the-scenes narrative, as Toobin’s sources are not revealed in the article, but White is “skeptical,” writing, “Given Toobin’s inability of accurately handling straightforward, easily confirmable facts, why should anyone take at face value Toobin’s description of the justices’ private discussions, and their draft opinions—especially when Toobin only describes, never quotes, those deliberations or draft opinions?” Like Adler, Toobin questions the ethics of the person or persons at the Court who “leaked” the story to Toobin. [Weekly Standard, 5/17/2012]

Entity Tags: New York Times, Ed Whelan, Adam White, Jeffrey Toobin, Lyle Denniston, John G. Roberts, Jr, Theodore (“Ted”) Olson, Jonathan Adler, Richard L. Hasen, Thomas Goldstein

Timeline Tags: Civil Liberties

A federal judge denies the US government’s request (see May 25, 2012) to reconsider her order (see May 16, 2012) blocking enforcement of a law authorizing indefinite military detention, without charge or trial, of anyone, including US citizens arrested in the United States, accused of supporting groups hostile to the United States. Section 1021 of the 2012 National Defense Authorization Act (NDAA—see December 15, 2011) is under review in the case of Hedges v. Obama (see January 13, 2012) and Judge Katherine B. Forrest of the US District Court, New York Southern Division had issued a preliminary injunction enjoining enforcement of the law after finding it unconstitutional.
Controversy over Scope of Detention Authority - The US government had also stated in its request for reconsideration that it was interpreting Forrest’s order as applying only to the plaintiffs in the case. Forrest clarifies in her subsequent Memorandum Opinion and Order that by enjoining enforcement of § 1021(b)(2), the only remaining persons the law can be applied to are those defined in § 1021(b)(1): “A person who planned, authorized, committed, or aided the terrorist attacks that occurred on September 11, 2001, or harbored those responsible for those attacks.” This definition of covered persons is the same as the one given in the 2001 Authorization for Use of Military Force, passed by Congress following the September 11 attacks (see September 14-18, 2001). The Supreme Court has only ruled on a narrow range of relevant detention issues; one oft-cited case is Hamdi v. Rumsfeld (see June 28, 2004). Lower courts have produced a variety of opinions, some upholding an expansive view of detention authorities, others challenging it. In § 1021 of the NDAA, Congress asserted that it “affirms” detention authority granted under the AUMF, and does not “expand… the scope of the [AUMF].” Senator Carl Levin (D-MI), during a debate on the NDAA, explained the language in this way: “[W]e make clear whatever the law is. It is unaffected by this language in our bill” (see December 15, 2011). Congress included a separate, broader definition of covered persons in § 1021(b)(2) that potentially covered anyone alleged by the government to have supported groups hostile to the US, including US citizens arrested in the United States. This section is what prompted Hedges to sue, alleging these provisions violated his First and Fifth Amendment rights (see January 13, 2012). Forrest found the bill’s broad and vague provisions for indefinite military detention to be unconstitutional, and Congress’s statement that it was only affirming established law to be “contrary to basic principles of legislative interpretation that require Congressional enactments to be given independent meaning” (see May 16, 2012). [MEMORANDUM OPINION & ORDER: Hedges et al v. Obama 12 Civ. 331 (KBF) affirming preliminary injunction and scope, 6/6/2012]

Entity Tags: US Department of Justice, Katherine B. Forrest, Carl Levin, United States District Court, New York, Southern Division, National Defense Authorization Act of 2012

Timeline Tags: Civil Liberties

Former Senator Russ Feingold (D-WI) writes an article for the Stanford Law Review discussing the dominance of “big money” in the nation’s elections in the wake of the 2010 Citizens United decision (see January 21, 2010), documenting his belief that the rise in small-donor contributions that put Democrats in office in 2006 and 2008 led to the Citizens United backlash, and calling for sweeping campaign finance reform. Feingold writes, “Without a significant change in how our campaign finance system regulates the influence of corporations, the American election process, and even the Supreme Court itself, face a more durable, long-term crisis of legitimacy.” Feingold heads Progressives United, an advocacy group that pushes for the overturning of the Citizens United decision and campaign finance legislation.
Background - Feingold gives the background of campaign finance reform in America: the 1907 Tillman Act which banned corporations from spending their money in elections (see 1907), which he says was spurred by the realization that “corporate influence corrupts elections”; the Taft-Hartley Act of 1947, which extended the Tillman ban to labor unions (see June 23, 1947); and more recent legislation, including the Bipartisan Campaign Reform Act of 2002 (BCRA—see March 27, 2002), which Feingold co-authored with Senator John McCain (R-AZ). “And for several election cycles, between 2004 and 2008, our system seemed headed towards more fair and transparent elections,” he writes. “But Citizens United changed everything.” The “road to corruption” in modern elections, he says, began when Democrats in the early 1990s began exploiting a loophole in finance regulation that allowed the creation of “soft money” groups (see January 8, 1980, November 28, 1984, December 15, 1986, and December 10, 2003) that allowed parties to solicit unlimited amounts of donations from corporations, labor unions, and individuals. “This system was corrupting,” Feingold writes. “Senators would solicit gigantic, unregulated contributions from the same corporations that had legislation pending on the Senate floor. Both parties were guilty.” The BCRA plugged the “soft money” loophole. Even as the BCRA began to reform campaign finance practices, Feingold writes, “the same corporate interests that fought McCain-Feingold set to work to dismantle it. In what was clearly an orchestrated effort by opponents of campaign reform (see January 25, 2010), a group called Citizens United produced a movie savaging the record of then-Senator Clinton (see January 10-16, 2008). Ostensibly intended to educate the public about conservative concerns regarding Clinton’s run for the presidency, the film was little more than a legal vehicle to challenge some of the common-sense restrictions enacted by the BCRA (see January 10-16, 2008, March 24, 2008, March 15, 2009, June 29, 2009, and September 9, 2009). Specifically, the creators of the film sought to challenge the BCRA’s requirement that electioneering communications—commonly known as ‘phony issue ads’ that attack a candidate in the days before the election, but don’t explicitly advocate voting for or against that candidate—be subject to the same disclosure requirements and contribution limits as other campaign ads.” The case was argued on narrow grounds about a specific provision of the BCRA, but the Court’s conservative justices, led by Chief Justice John Roberts, “manipulated the Court’s process to achieve that result” (see May 14, 2012). Justice John Paul Stevens wrote in his dissent to the majority opinion, “[F]ive justices were unhappy with the limited nature of the case before us, so they changed the case to give themselves an opportunity to change the law.” The ruling, Feingold writes, “created a framework for corruption parallel to ‘soft money.’” Instead of “soft money” organizations, Citizens United led to the creation of the “super PAC” (see March 26, 2010, June 23, 2011, November 23, 2011, January 4, 2012, January 4, 2012, January 13, 2012, and February 20, 2012). It has also called into doubt the legitimacy of US elections themselves, due to the “increasing skepticism about the campaign finance system.” Many voters now believe “that the average participant’s small contribution is irrelevant, and that the average person’s vote is grossly outweighed by the gigantic contributions now allowed.”
Internet Politics and Small-Donor Contributions - In part due to the BCRA, Feingold writes, “[f]or three election cycles, in 2004, 2006, and 2008, our system of campaign financing began to take shape in a way that channeled citizen participation and provided incentive for candidates to turn to the democratic support of online activists and small-dollar contributors.” He cites the 2004 presidential campaign of Howard Dean (D-VT), who went on to chair the Democratic National Committee (DNC), as the first powerful instance of “online organizing,” using the Internet to garner millions of dollars in small donations from individual citizens. In 2008, the presidential campaign of Barack Obama (D-IL) pushed the Dean innovation even further. The Obama campaign “raised a historic amount in small-dollar contributions,” Feingold writes, and created an online platform to engage supporters. All told, the Obama campaign raised $500 million online.
An Ineffective FEC - By 2008, he writes, the Federal Election Commission (FEC) was completely impotent. The agency “has been fatally flawed since the time of its creation—any administrative law professor will point out that a law enforcement commission with an even number of commissioners [six] is probably designed specifically not to enforce the law at all,” he writes. By 2008, the FEC only had two seated commissioners, and in effect was not enforcing campaign laws whatsoever. Even after eventually receiving a full complement of commissioners, he writes, the agency “remains ineffective, as even Democratic violators go unpunished as conservative commissioners remain unwilling, philosophically, to enforce any campaign finance law.”
2012: Corporations Trump Citizens - In 2012, corporate contributions far outweigh small-dollar donations by individuals. “[T]he most prominent actors in the 2012 election cycle are unnamed corporations and a small group of influential—primarily conservative—billionaires.” Seventy percent of registered voters think super PACs should be illegal, according to polls, and the favorability rating of the Court has dropped a significant amount. Overall, Feingold writes, the public is firmly against the Citizens United paradigm of campaign finance. He advocates strong legislation from Congress, fixing the “broken system of presidential public financing,” and replacing the “dysfunctional” FEC “with a true enforcement agency.” The ultimate repair of campaign finance lies with the Court, he says, noting that the Court has a chance to do some early repair with the Montana case it is now considering (see June 25, 2012). Regardless of what the Court does or does not do in the Montana case, he concludes, “[t]oday’s framework for corruption cannot stand.” [Stanford Law Review, 6/14/2012]

Entity Tags: Howard Dean, Bipartisan Campaign Reform Act of 2002, Barack Obama, Citizens United, Hillary Clinton, Russell D. Feingold, Federal Election Commission, John McCain, John G. Roberts, Jr, Stanford Law Review, John Paul Stevens

Timeline Tags: Civil Liberties

Senate Minority Leader Mitch McConnell (R-KY) accuses President Obama and Congressional Democrats of subverting the constitutional guarantees of free speech by trying to restrict political campaign contributions, and says Democrats are using “mob” tactics against their critics. McConnell, speaking at the American Enterprise Institute, says that the White House has shown “an alarming willingness itself to use the powers of government to silence” political speech of groups with which it disagrees. “It is critically important for all conservatives—and indeed all Americans—to stand up and unite in defense of the freedom to organize around the causes we believe in, and against any effort that would constrain our ability to do so,” he says. McConnell is referring to Democrats’ push for the DISCLOSE Act, a campaign finance bill that would force disclosure of the identities of campaign donors that was defeated by a Republican filibuster in 2010 (see July 26-27, 2010) and is being brought up again. The DISCLOSE Act would affect both corporations and unions. Corporate spending in elections tends to favor Republicans, while union spending tends to favor Democrats. McConnell says the act would require “government-compelled disclosure of contributions to all grass-roots groups, which is far more dangerous than its proponents are willing to admit. This is nothing less than an effort by the government itself to expose its critics to harassment and intimidation, either by government authorities or through third-party allies.… The courts have said that Congress doesn’t have the authority to muzzle political speech. So the president himself will seek to go around it by attempting to change the First Amendment.” McConnell cites the Internal Revenue Service (IRS) as one government agency “persecuting” Republican-allied groups, saying, “Earlier this year, dozens of tea party-affiliated groups across the country learned what it was like to draw the attention of the speech police when they received a lengthy questionnaire from the IRS demanding attendance lists, meeting transcripts, and donor information.” The IRS has denied targeting groups based on their political views. IRS Commissioner Douglas H. Shulman says the information requirements stemmed from the tea party groups’ applications for nonprofit status, which triggered automatic IRS review procedures. “There’s many safeguards built in so this has nothing to do with election cycles and politics,” Shulman said before a House Appropriations subcommittee. “This notion that we’re targeting anyone is off.” McConnell says of Obama, “Not only did his campaign publish a list of eight private citizens it regards as enemies—an actual old-school enemies list—it recently doubled down on the effort when some began to call these thuggish tactics into question.” McConnell is referring to an Obama campaign “truth team” document that publicized information about eight wealthy Republican donors. “The tactics I’m describing extend well beyond the campaign headquarters in Chicago. To an extent not seen since the Nixon administration, they extend deep into the administration itself.” McConnell cites the example of Idaho businessman Frank VanderSloot, the national finance co-chair of the Mitt Romney presidential campaign, who was “smeared” as being “a bitter opponent” of gay rights by the Obama campaign. [Bloomberg, 6/15/2012; New York Times, 6/15/2012] VanderSloot is an outspoken opponent of gay rights, though he has hotly denied advocating such positions and often threatens lawsuits against those reporting his positions (see February 17-21, 2012). [Salon, 2/17/2012; KIFI Local News 8, 3/1/2012] The New York Times calls McConnell’s remarks “incendiary.” Fred Wertheimer of Democracy 21, a campaign-finance reform advocacy group, says McConnell “doesn’t have a constitutional or policy leg to stand on.” Democrats note that McConnell has failed to criticize organized efforts by the Romney campaign to heckle and disrupt campaign press conferences, nor has he criticized tea party efforts to disrupt and shout down Democrats during town hall meetings around the country. Wertheimer says McConnell is using his fiery rhetoric to, in the Times’s phrasing, “run interference for the secret donors pumping hundreds of millions of dollars into the US Chamber of Commerce and American Crossroads.” Obama campaign spokesperson Ben LaBolt says, “Senator McConnell has been running a cover-up operation for the special interest donors attempting to buy the election for the GOP in order to promote their agendas over the national interest.” [Bloomberg, 6/15/2012; New York Times, 6/15/2012]

Entity Tags: Barack Obama, Ben LaBolt, Douglas H. Shulman, Internal Revenue Service, Frank VanderSloot, US Congress, Fred Wertheimer, Mitch McConnell, New York Times

Timeline Tags: Civil Liberties, 2012 Elections

Senate Democrats try twice within a two-day period to bring the DISCLOSE Act, a campaign finance bill that would require the disclosure of the identities of political donors (see July 26-27, 2010), to the floor for a vote. If enacted, the Democracy Is Strengthened by Casting Light On Spending in Elections (DISCLOSE) Act would overturn many elements of the Supreme Court’s controversial Citizens United decision that allows virtually unlimited and anonymous political spending by corporations and other entities (see January 21, 2010). If passed, it would create new campaign finance disclosure requirements and make public the names of “super PAC” contributors (see March 26, 2010). Individuals, corporations, labor unions, and tax-exempt charitable organizations would, under the act, report to the Federal Election Commission (FEC) each time they spend $10,000 or more on campaign-related expenditures. The bill would also “prohibit foreign influence in federal elections [and] prohibit government contractors from making expenditures with respect to such elections.” Both Senate Democratic efforts are thwarted by a Republican filibuster. Democrats are unable to muster the 60 votes needed to grant “cloture,” which would break the filibuster and bring the bill to the floor to be voted up or down. The last vote supports cloture 53-45, not enough to invoke cloture; the first vote was 51-44 in favor. Senators Mark Kirk (R-IL), who is recovering from a seizure, and Richard Shelby (R-AL) do not vote. Democrats force an official recording of each senator’s vote, placing the names of senators voting for and against the bill in the public record. Democrats have tried since 2010 to pass the bill (see July 26-27, 2010). The bill, sponsored in its latest iteration by Sheldon Whitehouse (D-RI), would force unions, nonprofits, and corporate interest groups that spend $10,000 or more during an election cycle to disclose donors who give $10,000 or more. Whitehouse modified the original version of the bill to no longer require sponsors of “electioneering” ads to put a disclaimer at the end, and pushed the effective date of the bill to 2013, meaning it would not impact the 2012 presidential campaign. Whitehouse and 15 other senators take to the floor to press for its passage. “When somebody is spending the kind of money that is being spent, a single donor making, for instance, a $4 million anonymous contribution, they’re not doing that out of the goodness of their heart,” he tells the Senate. Democrats urge Republicans who have previously spoken out in favor of transparency and campaign finance reform to vote for the bill, targeting Senators Lamar Alexander (R-TN), Scott Brown (R-MA), John McCain (R-AZ), and Susan Collins (R-ME). However, none of them break ranks with their fellow Republicans. McCain, who co-authored the McCain-Feingold campaign finance bill of 2002 (see March 27, 2002) and has spoken out against the Citizens United Supreme Court decision that allows corporations and unions to anonymously spend unlimited amounts on “electioneering” activities (see January 21, 2010), refuses to join Democrats in supporting the bill. He tells the Senate before the final vote, “The American people will see it for what it is—political opportunism at its best, political demagoguery at its worst.” McCain asks Senate Democrats “to go back to the drawing board and bring back a bill that is truly fair, truly bipartisan, and requires true full disclosure for everyone.” Senate Minority Leader Mitch McConnell says the bill would “send a signal to unions that Democrats are just as eager to do their legislative bidding as ever,” and that it “amounts to nothing more than member and donor harassment and intimidation.” In his weekly press conference shortly before the floor votes, McConnell says of the bill: “This could best be described as a selective disclosure act. It has managed to generate opposition from everybody from the ACLU to [the] NRA. That’s quite an accomplishment.” Senate Majority Leader Harry Reid (D-NV) says of the bill: “[I]n a post-Citizens United world, the least we should do is require groups spending millions on political attack ads to disclose their largest donors. We owe it to voters to let them judge for themselves the attacks—and the motivations behind them.” And Ellen Miller of the Sunlight Foundation says that the Senate is “thumbing their noses at the very notion of democratic elections.” [Politico, 7/14/2012; OMB Watch, 7/24/2012] After the bill fails to pass, Reid says, “It is obvious Republicans’ priority is to protect a handful of anonymous billionaires—billionaires willing to contribute hundreds of millions of dollars to change the outcome of a close presidential contest.” [The Hill, 7/24/2012]

Entity Tags: Mitch McConnell, Harry Reid, Ellen Miller, DISCLOSE Act of 2010, John McCain, Mark Steven Kirk, Susan Collins, Lamar Alexander, US Senate, Scott Brown, Richard Shelby, Sheldon Whitehouse

Timeline Tags: Civil Liberties

An artist’s rendition of Adel Abdel Bary tearing up in court.An artist’s rendition of Adel Abdel Bary tearing up in court. [Source: Reuters]Adel Abdel Bary is sentenced to 25 years in prison after pleading guilty to several terror-related counts, including making bomb threats and conspiring to kill American citizens overseas. Bary is the father of Abdel-Majed Abdel Bary, a suspected Islamic State of Iraq (ISIS) militant, originally one of three people thought to be the infamous “Jihadi John” who beheaded journalist James Foley in August 2014. (Authorities will later determine “Jihadi John” to be Briton Mohammed Emwazi.) Adel Abdel Bary admits to being an al-Qaeda spokesman following the bombings of the US embassies in Kenya and Tanzania in 1998 (see 10:35-10:39 a.m., August 7, 1998). Anas al-Liby and Khalid al-Fawwaz, also accused of being al-Qaeda operatives, were set to appear alongside Adel Abdel Bary in New York in two months’ time. Al-Liby and Fawwaz have pleaded not guilty to their terror charges. [Independent, 9/20/2014; US Department of Justice, 2/6/2015; Washington Post, 2/26/2015]

Entity Tags: Khalid al-Fawwaz, Adel Abdel Bary, Anas al-Liby

Timeline Tags: Complete 911 Timeline

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