* Date: February 26, 2015

Topic: Campaign Finance

Aim: How are campaigns funded?

Do Now: Veto!

*Political Action Committees – PAC’s (You will be asked this in May). *A committee set up by a corporation, labor union, or interest group that raises and spends campaign money from voluntary donations.

*PAC must give to over 5 candidates.

*PAC must have existed for 6 months.

*PAC must have over 51 contributors.

*Some Key Terms*Independent Expenditures – spending by political action committees,

corporations, or labor unions to help a party or candidate but done independently of them.

*Federal Election Commission - to administer and enforce the Federal Election Campaign Act (FECA) - the statute that governs the financing of federal elections. The duties of the FEC, which is an independent regulatory agency, are to disclose campaign finance information, to enforce the provisions of the law such as the limits and prohibitions on contributions, and to oversee the public funding of Presidential elections.

*Soft Money – funds not specified for candidates campaigns, but given to political parties for “party building” activities.

*527 Organizations – Named for a section of the tax code, a 527 group can run political ads with unlimited individual and corporate contributions but must disclose donors to the IRS.

*Super Pac – Can raise and spend unlimited amounts of money on politics, but must operate independently from candidates and cannot contribute to individual candidates. Donors must be disclosed to the FEC.

*Citizens United vs The Federal Election Commission (2010) – the First Amendment prohibited the government from restricting independent political expenditures by corporations and unions.

*Bipartisan Campaign Finance Reform Act

(2002)*Also called the McCain-Feingold Act of 2002.

*Banned soft money contributions to national political parties from corporations and unions.

*Limit raised from $1,000 to $2,000 for individual contributions (2013-14: $2,600).

*Restrictions on independent expenditures – none of these independent organizations can use their own money to refer to a clearly identified federal candidate in any advertisement during the 60 days preceding a general election or 30 days preceding a primary.

*Ex: You can run a swift-boat ad but it depends on when.

*Citizens United Case*Corporations can spend as much as

they want to support candidates running for Congress or President independent from the candidate.

*Struck down a part of the McCain-Feingold Bill that barred corporate paid ads in the 30 days (primary) or 60 days (general) prior to election. day.

*Reasons Behind It…*1972: Watergate scandal – Nixon people engaged in

illegal money raising schemes such as taking large sums of money from wealthy contributors and appointing them as ambassadors.

PERLE MESTA - LUXEMBOURG

*Watergate Results on Campaign Finance*FEDERAL ELECTION CAMPAIGN ACT (1971)

*Established regulations for federal primary races and general elections.

*These regulations included limits to individual contributions and increased public disclosure of campaign receipts.

*The Federal Election Commission was founded as part of a 1974 amendment to enforce election laws and establish a public financing program for candidates.

*Made federal tax money available to help pay for presidential primary campaigns.

*Made federal tax money available to the major party candidate in a general election.

*PAC’s – a.) must have at least 50 members. B.) give to at least five federal candidates. C.) Must not give more than $5,000 to any candidate in any election.

*Matching Funds

*A candidate can decide to forgo federal money and raise his or her own money. Federal funds limit in 2008 was approximately $80 million. 2008: OBAMA RAISED $750

MILLION ON HIS OWN.

*Buckley v Valeo (1976)*Did campaign spending limits violate the First Amendments freedom of speech?

*No, because the spending limits were put in place to protect democratic ideals.

*Candidates could give unlimited amounts of their own money.

YOU WILL SEE THIS IN MAY!

*Problems*Independent Expenditures - Spending by PAC’s, corporations,

or labor unions to help a party or candidate but done independently of them.

*Ex: Swift Boat Veterans in 2004

*Soft Money – individuals, corporations, labor unions, and other groups could give unlimited amounts of money to political parties provided the money did not go to the candidates by name.

*Ex: Voting drives.

*Outlawed by McCain Feingold.

*527’s!*Organizations under section 527 of IRS code that raise and

spend money to advocate political causes.

*They are tax exempt.

*Undisclosed and hidden from the public.

*REMEMBER THE VIDEO WE FINISHING WATCHING YESTERDAY….HOW DID IT ALL GET DONE? WHAT WERE THE DIFFERENT ROLES PEOPLE PLAYED?

*HOW WAS IT PAID FOR?

*Predict an outcome…*Why are there rules regarding campaign finance?

*Who are we trying to protect?

*Why are we trying to protect them?