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How to Squeeze the Political Parties
The Campaign Finance Ruling Helps Big Donors
By The Editorial Board, April 3, 2014
Reince Priebus, the Republican Party chairman, was practically giddy on Wednesday imagining the riches he can squeeze from big private bank accounts as a result of the Supreme Court decision that knocked down yet another campaign finance limit. “We are grateful and we are excited,” he said, explaining that donors will now be able to “max out” in giving to more party committees, at far higher levels than previously allowed.
But actually, it is the big donors who will be squeezing the parties, not the other way around. They now have far more power to dictate terms to politicians, and will soon begin issuing demands to benefit their special interests.
Why? Donors will now have a wide array of choices in where to spend their political dollars, thanks to the Supreme Court. The 2010 Citizens United decision, combined with lower-court rulings, opened the door to giving unlimited amounts of money to “super PACs” and nonprofit political groups, money that was spent on electing and defeating specific candidates. The court’s McCutcheon decision on Wednesday allows donors to give as much as $3.6 million to joint fund-raising committees set up by the parties, which can be used to benefit individual candidates.
That makes the parties players in the big-money race for the first time, since an individual’s contributions to party committees had been limited to $74,600 per election cycle. But the parties will be competing with the super PACs for those six-figure checks, and the check writers know it. For that kind of money, donors expect something beyond a nice table at a fund-raiser and a photo with a party leader. And the parties, which are controlled by the top lawmakers, are in a position to provide it — tax benefits, special clauses in regulatory bills, spending that helps a particular industry.
Donors, of course, have differing needs and demands. Some, like the Koch brothers, seek broad ideological change, knowing that reducing the overall power of government will give their widely scattered industries more freedom and higher profits, unburdened by pesky environmental and financial regulations. Others, like Tom Steyer, a billionaire investor, are more narrowly focused on specific issues, like reducing man-made climate change.
Industries and their executives often have even more closely tailored demands of government, and are willing to pay to make those demands in person. A cable company wants approval of a merger. Wireless companies and broadcasters want pieces of the frequency spectrum. Banks and payday lenders want less regulation and oversight. Medical device makers want to get rid of a tax. All of them spend fortunes on lobbying, and now their executives can dangle the prospect of millions before the parties to get the access they need. (The companies themselves can’t write those checks, but they can give whatever they want to super PACs and nonprofits.)
A memo by Covington & Burling, a legal and lobbying firm, explains to its corporate clients how giving post-McCutcheon will work. “The difference here is that, unlike with super PACs, elected politicians are able to request the contributions directly from the high-net-worth donor,” the firm wrote. The decision will “allow power to collect around any member [of Congress] who can command a national or regional base of wealthy donors, such as a prominent Tea Party or environmental advocate.” In other words, lawmakers who are the most responsive to special interests and ideologies will reel in the biggest donations to their parties, thereby gaining more power.
Chief Justice John Roberts Jr., showing insincere naïveté, doesn’t consider that purchase of access to be corruption, which he apparently detects only in bribery. But the donors know that American politics is now for sale, and they are ready to buy.
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