A lobbying battle is raging largely behind the scenes over a seemingly obscure executive order that could — if signed by President Obama — make public the political spending that many corporations can now keep secret.
Under the proposed order, all companies bidding for federal contracts would be required to disclose money spent on political campaign efforts, including dollars forwarded through associations like the U.S. Chamber of Commerce and other private groups.
Election spending by such organizations soared to new heights in 2010, thanks in part to the Supreme Court’s ruling in the Citizens United case, which allowed corporations and unions to make direct political expenditures. The majority opinion endorsed disclosure of the new political spending, but many groups have formed as nonprofits, which do not have to reveal their funding sources.
Since then, campaign finance reform advocates and their Democratic allies have sought to unmask the secret contributions fueling the groups, arguing that such spending allows wealthy individuals, corporations and other special interests to have an outsized influence on elections without voters knowing who is behind the effort. [Read more]
WASHINGTON, April 26th — So much for détente.
After a brief truce of sorts between the White House and business leaders, the top lobbyist at the U.S. Chamber of Commerce took aim at President Obama on Tuesday over an as-yet unannounced plan to force government contractors to disclose their political giving.
The lobbyist, R. Bruce Josten, said in an interview that the powerful business bloc “is not going to tolerate” what it saw as a “backdoor attempt” by the White House to silence private-sector opponents by disclosing their political spending.
“We will fight it through all available means,” Mr. Josten said. In a reference to the White House’s battle to depose Libya’s leader, Col. Muammar el-Qaddafi, he said, “To quote what they say every day on Libya, all options are on the table.”
While no final decision has been announced, the White House has acknowledged that Mr. Obama is considering issuing an executive order requiring all would-be federal contractors to disclose direct and indirect political spending of more than $5,000.
The order could, for instance, force a military contractor or an energy company seeking federal work to report money it gave to the Chamber of Commerce or another advocacy group to help finance political ads and expenditures. [Read more]
But it’s not yet clear that the efforts could have a substantial effect on the 2012 election — or that Democrats won’t exceed Republicans in attracting undisclosed donations to their own newly formed organizations.
Even as Rep. Chris Van Hollen (D-Md.) and his pro-reform allies filed a lawsuit Thursday against the Federal Election Commission demanding donor disclosure, other Democrats were raising substantial contributions for 2012 campaign advertising. And two former White House aides have been talking of setting up their own independent group that could include a nonprofit arm to shield the identities of major donors.
The White House railed against independent campaign spending financed by secret donations in the 2008 and 2010 elections. President Obama has emphasized disclosed and limited donations of the sort he raised at events in San Francisco and Los Angeles this week.
But now there is a growing consensus that Democrats should begin their own efforts to collect large-dollar undisclosed donations, or risk defeat. [Read more]
This can be our moment. A new activism is emerging in the United States and abroad, where people, in unexpected places, are standing up to challenge the rich and powerful. From recent uprisings in Egypt, to young people and workers in Europe marching and striking against shortsighted austerity plans, to the battle of nurses, teachers, firefighters and community members in Wisconsin, and the sit-ins and occupations of banks starting around the country, a movement is starting to grow.
After being battered and on the defensive, we have an opportunity in the United States to go on the offensive to transform the economy and politics of our country and create shared prosperity for all. Corporations have $1.6 trillion in cash reserves and are making record profits. The CEOs of Wall Street and the big banks paid themselves record compensation and bonuses of $135 billion in 2010 ($7 billion more than in 2009). After trillions in bailouts, they are even bigger and more dominant than before the economic crash. Now can be our moment to build a movement that both captures the popular imagination and has a strategy to engage millions of people to improve their lives by harnessing:
To do this, we need to understand how our country and our economy got in the mess they are in, the opportunities we have missed over the last two years and the critical role we can all start playing to fix it. [Read more]
This morning’s Politico features another piece (“Obama and Wall St.: Still Venus and Mars“) in a continuing series that present Wall Street people whining about all those times White House higher-ups have ever-so-mildly allowed certain language to slip from their larynxes that makes the financial industry out to be some kind of villain for that time its over-leveraged, incompetent speculation led to the near-collapse of the entire economy and required taxpayers to shovel untold billions of dollars at too-big-to-fail banks so that they could survive. They are sad, you see, and the record-setting profits they have made are no comfort to them, because hey, maybe The Huffington Post will say something really mean! That is literally a thing that appeared in a newspaper, today! [Read more]
Barely a week after Democrats’ trouncing in the 2010 midterms, due in part to a massive influx of shadowy political spending, the left is gearing up to fight fire with fire. David Brock, the former investigative journalist who founded the watchdog Media Matters for America, is trying to form a 527 political advocacy group, according to Greg Sargent at the Washington Post. In theory, the group would be akin to Karl Rove’s American Crossroads outfit, but with a liberal bent.
The revelations about Brock’s potential 527 come days after a top White House adviser, David Axelrod, opened the door for lefty groups to push back against the wave of secretive GOP cash. In an interview with Politico, Axelrod wouldn’t rule out the need for Democratic outside groups in 2012 to push back against conservative forces like American Crossroads, Crossroads GPS, the US Chamber of Commerce, and many more. While outside groups of all ideologies spent more than $400 million in the 2010 midterms, the White House anticipates the Chamber and its right-leaning ilk spending upwards of $500 million on their own to defeat President Obama. [Read more]
One result of the 2010 campaign is clear before any ballots are counted: Democracy is in danger.
That sounds hyperbolic. But whatever remains of the quaint notion—call it a myth—that in a democracy citizens are more or less equal is in the process of being shredded, due to the rise this year of super PACs and secretive political nonprofits. Thanks to the Supreme Court’s notorious Citizens United decision and other rulings, a small number of well-heeled individuals (or corporations or unions) can now amass a tremendous amount of political influence by throwing an unlimited amount of money into efforts to elect their preferred candidates. And certain political nonprofits, such as Crossroads GPS—the outfit set up this year by GOP strategists Karl Rove and Ed Gillespie (which with an affiliated group is spending about $50 million)—can pour tens of millions of dollars into the elections without revealing the source of their campaign cash. [Read more]