Questionable challenges to recall petitions for Wisconsin State Senator Scott Fitzgerald (R-Juneau) bear a resemblance to a "voter caging" scheme led by Tea Party groups in the 2010 elections.
The Koch-founded Americans for Prosperity Foundation (AFP), a 501(c)(3) nonprofit "charity" prohibited from intervening in political campaigns, is spending $700,000 on ads and holding events around Wisconsin that look like appeals to re-elect Wisconsin Governor Scott Walker, who is facing a recall election. The campaigning comes as secretly-funded nonprofits are playing an increasingly important role in elections nationally.
While the popular understanding of the U.S. Supreme Court's Citizens United decision is that it opened the door to unlimited corporate spending, last week's FEC filings showed that many of the millions that Super PACs received in 2011 came not from corporations, but from deep-pocketed individuals and corporate CEOs. What remains unknown is just how much corporate money is secretly flowing through another vehicle being used to influence political outcomes, the 501(c)(4) nonprofit.
Notably, the Tea Party-affiliated FreedomWorks Super PAC received more than $1.3 million in contributions from its associated 501(c)(4). Under current law, the FreedomWorks (c)(4) is not required to disclose its donors to the public -- unlike a Super PAC -- suggesting one way that corporate donors can disguise their political spending.
South Carolina is again considering a bill from the American Legislative Exchange Council (ALEC) to limit access to the ballot box. A nearly identical version of an ALEC voting bill is moving through the state Senate and comes on the heels of the U.S. Department of Justice (DOJ) blocking South Carolina's ALEC-inspired voter ID law as discriminatory against people of color.
Mitt Romney's 2010 tax returns show that in 2010, Romney and his wife, Ann, paid an effective tax rate of 13.9 percent on $21.6 million in income -- much lower than the 35 percent the country's top wage-earners pay -- and hold millions of dollars in multiple offshore accounts in the Cayman Islands, a notorious tax haven. The official spin is that the Cayman accounts provide no particular tax advantage, that they pay higher interest rates and help "attract foreign investors." Romney's campaign counsel, Ben Ginsburg, assured journalists that Romney was in full compliance with U.S. tax laws, and Brad Malt, who operates the Romneys' blind trust, said Romney's Cayman funds are fully taxable and reported to the IRS. That may be so, but Rebecca Wilkins, a tax policy expert with Citizens for Tax Justice, points out that the federal government loses about $100 billion a year to just such foreign tax havens. Wilkins affirmed that the primary advantage to investors of setting up funds in places like the Cayman Islands is to help people avoid taxes. Jack Blum, a Washington, D.C. attorney who specializes in offshore banking and tax enforcement, said offshore investment vehicles allow investors to "avoid a whole series of small traps in the tax code that ordinary people would face if they paid tax on an onshore basis."
January 21 marks the second anniversary of Citizens United v. F.E.C., where a narrow majority of the U.S. Supreme Court asserted that the Constitution prevents Congress from limiting the amount of money that can be spent influencing our elections. The Center for Media and Democracy is working with a constellation of groups in support of amending the Constitution to reverse the decision and address the distortion of the democratic process.
January 20 marks the second anniversary of the U.S. Supreme Court's disastrous decision in Citizens United v. F.E.C., where a narrow majority of the Court asserted that the Constitution prevents Congress from limiting the amount of money that can be spent influencing our elections. A series of events are planned this week to mobilize opposition to the decision and to generate support for a constitutional amendment to reverse it.
While Mitt Romney came out ahead in New Hampshire, his front-runner status will soon be under the gun by some very deep pockets backing Newt Gingrich.
As previously reported by CMD, over $3 million dollars worth of ads cut by a Super PAC controlled by Mitt Romney's former aides, dropped Gingrich like a stone in Iowa. Gingrich sank from an overconfident front runner, who told ABC's Jake Tapper "I will be the nominee" on December 1, to an embittered candidate who placed fourth in Iowa a short time later.
After ineffectually whining about being totaled by Mitt Romney's "negativity" in the Iowa primary, Newt Gingrich may have decided that revenge is sweeter. A pro-Gingrich Super PAC is preparing to unleash a barrage of negativity on South Carolina voters.
Newt Gingrich's Baggage
The new Super PACs dominating the air wars in Iowa and New Hampshire were unleashed by the Citizens United revision of the First Amendment to allow individuals and corporations to give unlimited amounts of money to influence U.S. elections. Super PAC spending cannot be directly coordinated with a candidate, but provides candidates with an avenue for negative attack ads that they do not have to put their name on. (Numerous groups are calling for amending the Constitution to overturn the decision.)
The most omnipresent ad by the pro-Romney "Restore Our Future" Super PAC led with the line "You know what makes President Obama happy? Newt Gingrich's baggage." It then went on to detail a scorching list of allegations, including that Gingrich was paid $30,000 an hour by Fannie Mae and Freddie Mac, two organizations that "helped cause the financial crisis."
"I've been Romney-boated," Gingrich complained to the press in Iowa, referring to the ad campaign in 2004 launched by the group, Swift Boat Veterans for Truth, that helped sink presidential candidate John F. Kerry. According to the Campaign Media Analysis Group, 45 percent of all TV ads in Iowa have been attack ads against Gingrich, including this no-hold-barred attack by Ron Paul's campaign. (Note that Paul does not hesitate to put his name right on the ad.)
The pro-Mitt Romney Super PAC massively outspent the candidate's official presidential campaign on advertising, reportedly spending $7 million to the candidate's official $5 million so far. While Romney dodged responsibility for the negative ads, Gingrich put is succinctly: "It's very hard to run $3.5 million of negative ads and pretend it's not yours and not have people think you're being dishonest."
"The Man that Destroyed Us"
Now, a pro-Gingrich Super PAC is getting ready to unleash a world of harm on the Romney campaign. According to the New York Times, billionaire casino owner Sheldon Adelson has cut a $5 million check to the "Winning Our Future" Super PAC. Adelson has long been a Gingrich supporter.
Winning our Future just released a devastating 30 minute film, When Mitt Romney Came to Town, in advance of the South Carolina primary ten days away. The Super PAC has reserved more than $3.4 million in advertising time in the state to air clips of the movie as ads.
The ads and the film claim that as CEO of Bain Capital, a venture capital firm, Romney bought American businesses simply to shut them down. Romney describes his tenure at Bain as one in which he created "100,000 jobs." But the ad characterizes Romney and Bain "as group of corporate raiders ... more ruthless than Wall Street" and intones, "For tens of thousands of Americans, the suffering began when Mitt Romney came to town." A woman put out of work by Bain, characterizes Romney as "the man who destroyed us," a potent message in a country that currently has 25 million unemployed or underemployed citizens.
Gingrich characterized Romney and Bain as "rich people figuring out clever legal ways to loot a company," but Gingrich of course has his own private equity supporters including Blackstone Group and KKR & Co. according to the Boston Globe.
As for the truth of the matter, an old Bain prospectus obtained by the Los Angeles Timesshows a stunning 88 percent average annual rate of return under Romney's leadership. But did the firm earn this money by creating jobs or destroying them? The Washington Post recently gave Romney three Pinocchios for his unsubstantiated job claims.
Madison, WI, January 9, 2012—The Center for Media and Democracy today joined a coalition of public interest organizations in calling for the United States Supreme Court to agree to follow the Code of Conduct for U.S. judges.