How Corporate Money Influences Politics: Can Corporations Be Stopped? Financing Campaigns (2007)

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• published: 30 Aug 2014
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The Congress passed the Bipartisan Campaign Reform Act (BCRA), also called the McCain-Feingold bill after its chief sponsors, John McCain and Russ Feingold. The bill was passed by the House of Representatives on February 14, 2002, with 240 yeas and 189 nays, including 6 members who did not vote. Final passage in the Senate came after supporters mustered the bare minimum of 60 votes needed to shut off debate. The bill passed the Senate, 60-40 on March 20, 2002, and was signed into law by President Bush on March 27, 2002. In signing the law, Bush expressed concerns about the constitutionality of parts of the legislation but concluded, "I believe that this legislation, although far from perfect, will improve the current financing system for Federal campaigns." The bill was the first significant overhaul of federal campaign finance laws since the post-Watergate scandal era. Academic research has used game theory to explain Congress's incentives to pass the Act. The BCRA was a mixed bag for those who wanted to remove big money from politics. It eliminated all soft money donations to the national party committees, but it also doubled the contribution limit of hard money, from $1,000 to $2,000 per election cycle, with a built-in increase for inflation. In addition, the bill aimed to curtail ads by non-party organizations by banning the use of corporate or union money to pay for "electioneering communications," a term defined as broadcast advertising that identifies a federal candidate within 30 days of a primary or nominating convention, or 60 days of a general election. This provision of McCain-Feingold, sponsored by Maine Republican Olympia Snowe and Vermont Independent James Jeffords, as introduced applied only to for-profit corporations, but was extended to incorporate non-profit issue organizations, such as the Environmental Defense Fund or the National Rifle Association, as part of the "Wellstone Amendment," sponsored by Senator Paul Wellstone. The law was challenged as unconstitutional by groups and individuals including the California State Democratic Party, the National Rifle Association, and Republican Senator Mitch McConnell (Kentucky), the Senate Majority Whip. After moving through lower courts, in September 2003, the U.S. Supreme Court heard oral arguments in the case, McConnell v. FEC. On Wednesday, December 10, 2003, the Supreme Court issued a 5-4 ruling that upheld its key provisions. Since then, campaign finance limitations continue to be challenged in the Courts. In 2005 in Washington state, Thurston County Judge Christopher Wickham ruled that media articles and segments were considered in-kind contributions under state law. The heart of the matter focused on the I-912 campaign to repeal a fuel tax, and specifically two broadcasters for Seattle conservative talker KVI. Judge Wickham's ruling was eventually overturned on appeal in April 2007, with the Washington Supreme Court holding that on-air commentary was not covered by the State's campaign finance laws (No New Gas Tax v. San Juan County).[6] In 2006, the United States Supreme Court issued two decisions on campaign finance. In Federal Election Commission v. Wisconsin Right to Life, Inc., it held that certain advertisements might be constitutionally entitled to an exception from the 'electioneering communications' provisions of McCain-Feingold limiting broadcast ads that merely mention a federal candidate within 60 days of an election. On remand, a lower court then held that certain ads aired by Wisconsin Right to Life in fact merited such an exception. The Federal Election Commission appealed that decision, and in June 2007, the Supreme Court held in favor of Wisconsin Right to Life. In an opinion by Chief Justice John Roberts, the Court declined to overturn the electioneering communications limits in their entirety, but established a broad exemption for any ad that could have a reasonable interpretation as an ad about legislative issues. Also in 2006, the Supreme Court held that a Vermont law imposing mandatory limits on spending was unconstitutional, under the precedent of Buckley v. Valeo. In that case, Randall v. Sorrell, the Court also struck down Vermont's contribution limits as unconstitutionally low, the first time that the Court had ever struck down a contribution limit. In March 2009, the U.S. Supreme Court heard arguments about whether or not the law could restrict advertising of a documentary about Hillary Clinton.[7] Citizens United v. Federal Election Commission was decided in January 2010, the Supreme Court finding that §441b's restrictions on expenditures were invalid and could not be applied to Hillary: The Movie. http://en.wikipedia.org/wiki/Campaign_finance_reform_in_the_United_States