This page can be viewed at http://www.historycommons.org/entity.jsp?entity=bobby_jack_perry_1
a.k.a. Bob Perry
The New York Times reports on fundraising activities by two prominent super PACs, the Republican-favoring American Crossroads and the Democratic-favoring House Majority PAC. American Crossroads reports raising $3.8 million since the beginning of the year, almost all of that money coming from a few wealthy donors: former Univision chairman A. Jerrold Perenchio ($2 million), Robert B. Rowling ($1 million), and Bob Perry ($500,000). The House Majority PAC, which has not been in existence as long as American Crossroads, raised $800,000 in that same time period—less than a fourth of that raised by American Crossroads—with a larger number of lesser donations. Some of its donors include S. Donald Sussman ($150,000), Fred Eychaner ($100,000), George Soros ($75,000), and labor unions such as the American Federation of State, County and Municipal Employees (AFSCME) and the Communications Workers of America (CWA). The House Majority PAC has spent over half of its donations on US House races. Both super PACs filed earlier than the July 15 reporting date because of activity surrounding a recent special House election in New York. Super PACs are allowed to raise and spend unlimited amounts, but must report their donations and their donors. (Willis 6/24/2011)
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. (Schouten and Schnaars 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.” (Millhiser 8/4/2011)
The “independent” super PAC supporting the campaign of presidential aspirant Mitt Romney (R-MA), Restore Our Future (ROF—see June 23, 2011), releases its year-end campaign finance disclosure forms. Eighty-five percent of the 147 individual donors to ROF have also contributed the legal maximum to Romney’s official campaign committee. A large number of those donors are private equity managers, as Romney once was, or other wealthy members of the financial sector. Hedge fund investors Julian Robertson and Paul Singer contributed the maximum $2,500 to the Romney campaign, and $1 million apiece to ROF. Home builder Bob Perry and venture capitalist Steven Webster contributed the maximum $2,500 to the Romney campaign, and $50,000 apiece to ROF. Another five contributed the maximum $2,500 to the Romney campaign and $25,000 apiece to ROF. About $9 million of ROF contributions came from donors who had contributed the maximum amount to the Romney campaign. About $6 million came from venture capitalists, real estate developers, bankers, and investors. ROF has already spent some $17 million attacking Romney’s Republican primary opponents and another $800,000 on activities to support the Romney campaign, making it the most active super PAC to date. All of these contributions are legal under the Citizens United (see January 21, 2010) and SpeechNow (see March 26, 2010) court decisions. (Federal Election Commission 1/31/2012; Israel 2/1/2012)
Almost a quarter of the millions donated to super PACs so far during the campaign season comes from just five donors, a USA Today analysis shows. 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. In August 2011, a USA Today analysis showed that a dozen wealthy individuals and corporations contributed over half of the money given to super PACs (see August 4, 2011). Washington Post columnist Ruth Marcus has called the influence of the supposedly independent organizations corrosively corrupting and extraordinarily dangerous, and correctly predicted that their influence would increase as the campaign season wears on (see January 3, 2012). Four of those donors are:
Dallas industrialist Harold Simmons, who financed the 2004 “Swift Boat Veterans for Truth” campaign that vilified presidential candidate John Kerry (D-MA), has given $12 million to the Republican super PAC “American Crossroads” and $2.2 million to super PACs supporting Republican presidential candidates;
Las Vegas casino billionaire Sheldon Adelson, who with his wife Miriam has given $10 million to “Winning the Future,” the super PAC supporting Republican candidate Newt Gingrich (R-GA—see December 19, 2011 and January 6, 2012), and who says he is willing to donate up to $100 million more to keep Gingrich in the race (see February 21, 2012);
Silicon Valley venture capitalist Peter Thiel, who has given $2.6 million to “Endorse Liberty,” a super PAC backing Representative Ron Paul (R-TX) and his presidential campaign;
Houston real estate developer Bob Perry, who has given $3.6 million to super PACs, including $2.5 million to American Crossroads. Perry formerly backed Governor Rick Perry (R-TX) and former Governor Tim Pawlenty (R-MN) in the presidential primaries, but has now shifted his allegiance to frontrunner Mitt Romney (R-MA).
Republican organizations have vastly outraised their Democratic counterparts, though so far much of the money spent by Republican organizations has been to attack Republican presidential candidates during the primary campaigns. Indeed, some political observers say that Romney would have secured the nomination long ago if not for the billionaires supporting other Republican candidates. “Without the flow of super PAC money, the Republican race would be over,” says campaign finance expert Anthony Corrado. “Super PACs have become a vehicle for a very small number of millionaires and billionaires who are willing to spend large sums in pursuit of their political agenda.” Political scientist Cal Jillson says of the billionaires contributing these huge sums: “They are extremely wealthy people who put their resources behind their vision of the appropriate relationship between the government and the private sector. That vision is low taxes, small government, and personal responsibility.” The super PAC working on behalf of President Obama, “Priorities USA,” collected $2 million in late 2011 from Hollywood executive Jeffrey Katzenberg, but since then has raised relatively paltry amounts in comparison to its Republican counterparts. It raised a mere $59,000 in January 2012, most of that made up of a $50,000 contribution from John Rogers, CEO of Arial Investments and a close friend of Obama. (Schouten, Korte, and Schnaars 2/21/2012) The USA Today analysis is congruent with a recent analysis by Robert Reich, the former Treasury Secretary under President Clinton (see February 21, 2012).
The Washington Post reports that an anonymous donor gave the political advocacy organization Crossroads GPS $10 million to run television ads attacking President Obama and Democratic policies, part of the almost $77 million in secret donations the group has received. It also received another $10 million from an anonymous donor to use during the 2010 midterm elections. The Post says the donations are emblematic of “the money race that is defining the 2012 presidential campaign.” According to data provided by the Center for Public Integrity, $76.8 million of the money raised in 2010 and 2011—62 percent—was secretly contributed to Crossroads GPS. The money came from fewer than 100 individual donors, which works out as an average donation of over $750,000; 90 percent of its donors gave over $1 million in individual donations. Crossroads GPS is a conservative nonprofit 501(c)(4) group co-founded by former Bush administration political advisor Karl Rove. The information about the donations comes from draft tax returns that provide a limited insight into the donations received by the group. Under the law (see January 21, 2010 and March 26, 2010), Crossroads GPS is not required to identify its donors. The Post says it is possible both donations came from the same source, but it has no way to confirm that supposition.
Explanations and Criticisms - Crossroads GPS is the sister organization of American Crossroads, the super PAC also co-founded by Rove. The two groups share the same president (Steven Law), the same spokesperson, the same staffers, and the same mailing address. Together, they have raised $100 million for the 2012 election cycle and have already run millions of dollars of television ads. Crossroads GPS spokesperson Jonathan Collegio says that the organization “advocates for free markets, free trade, limited government, and personal responsibility.” The group’s donors are “individuals and businesses that support our vision of lower taxes and smaller government. We believe President Obama’s tax and regulatory policies are strangling economic growth through excessive regulation and government spending that is crowding out private investment.” Bill Allison of the Sunlight Foundation, which advocates for transparency in government and politics, says that the two groups are “certainly not a grassroots movement.… These donors can have a very disproportionate effect on politics, and the fact that we don’t know who they are and what kind of favors they will ask for is very troubling.” Allison speculates that some of the anonymous Crossroads GPS donors may be large public corporations, which according to the Post have “for the most part… not donated to super PACs or other groups that disclose donors.” American Crossroads is required to disclose its donors, which include Texas billionaire Harold Simmons ($12 million) and Texas home builder Bob Perry ($2.5 million). The Republican Jewish Coalition has identified itself on its tax returns as a donor to Crossroads GPS, having given $4 million to the organization. (Crossroads GPS donated back $250,000.) Sunlight and other critics have questioned Crossroads GPS’s status as a nonprofit “social welfare” group. Under IRS regulations, such groups cannot have as their primary purpose influencing elections, but they can spend up to half their money on political campaigning. The group has asked the IRS to grant it tax-exempt status. Critics have asked the IRS to revoke the group’s nonprofit status, saying that it is patently a political organization. A complaint filed by the Campaign Law Center and Democracy 21 in December 2011 said in part, “We are deeply concerned about the failure of the IRS to take any public steps to show that the agency is prepared to enforce the tax laws.” Crossroads GPS claims it has spent $17 million on direct election activities and $27 million on “grassroots issue advocacy,” including a $16 million expenditure in the summer of 2011 on ads pushing against tax increases during debate on raising the debt ceiling (see August 5, 2011). It has also given some $16 million to a network of conservative advocacy groups, including $4 million to Americans for Tax Reform (ATR), $3.7 million to the National Federation of Independent Business, and $2 million to the National Right to Life Committee. According to Crossroads GPS, all of its donation recipients are instructed to use the funds “only for exempt purposes and not for political expenditures.” In 2010, ATR spent $4 million—almost exactly the amount it received from Crossroads GPS—on political ads in 2010. Melanie Sloan of Citizens for Responsibility and Ethics in Washington (CREW) says that even if ATR did not spend the Crossroads GPS money on ads, the donation allowed it to divert $4 million of its own money to election ads. “It’s the same amount—does that seem likely to be a coincidence to you?” she asks a reporter. An ATR spokesperson says the Crossroads GPS donation was “in support of our work fighting tax hikes.” (Farnam 4/13/2012; iWatch News 4/20/2012; Israel 4/20/2012)
High Compensation - Steven Law, the former deputy secretary of labor under President Bush and the former general counsel for the US Chamber of Commerce who serves as the president of both organizations, pulled down $1.1 million in salaries and bonuses for the two groups. Collegio explains the high compensation to a reporter, saying: “Crossroads is a serious organization. Free market conservative donors know that hiring top CEO talent requires real compensation.” (iWatch News 4/20/2012)
USA Today, using data provided by the Federal Election Commission (FEC), reports that much of the unprecedentedly high political contributions in the 2012 presidential campaigns comes from anonymous donors. The report also shows that eight out of the top 10 donors give to Republican and/or conservative super PACs. The pattern is similar to that described in earlier reports, such as an August 2011 report that found a dozen wealthy donors made up the majority of super PAC donations, and most of those donors contributed to Republican or conservative organizations (see August 4, 2011), and a February 2012 analysis that found a quarter of the donations flowing into the super PACs came from just five wealthy donors, four of whom are Republican contributors (see February 21, 2012). The latest data shows that eight out of 10 of the top super PAC donors are either individuals or corporations who donate to Republican causes. One of the remaining two donors, the Cooperative of American Physicians, supports a single Democratic candidate and a range of Republicans. The other is a teachers’ union, the National Education Association. The top three donors—casino billionaire Sheldon Adelson and his wife Miriam, Dallas industrialist Harold Simmons and his wife Annette, and Houston real-estate mogul Bob Perry—have between them contributed over $45 million, more than four times the donations coming from the “bottom” six donors. Much of the money collected by nonprofit political advocacy organizations remains undocumented; for example, 80 percent of the donations collected by the Republican-aligned American Crossroads super PAC and its 501(c)4 sister organization Crossroads GPS is from anonymous donors (see April 13-20, 2012). The groups plan on spending at least $300 million during the campaign. FreedomWorks for America, the super PAC arm of the “astroturf” lobbying organization FreedomWorks (see April 14, 2009), garnered about a third of its contributions from anonymous donors who gave to the organization’s nonprofit arm. Law professor and campaign finance expert Richard Hasen says, “We have a dysfunctional system for financing our elections,” when anonymous donations can fund political activity. “It’s bad for our democracy when people refuse to be held accountable.” Russ Walker, the national political director of FreedomWorks for America, says simply, “Everything we are doing is within the law.” (Schouten and Schnaars 4/22/2012; Millhiser 4/23/2012)
Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike