Legal By Matthew Seminara

Legal Individual and Corporate Contributions

How Elections Are Influenced in the US

If an individual decides to contribute to a political candidate for federal office, the Federal Campaign Finance Laws provide the contribution limits. The chart below from the Federal Election Commission (FEC) concisely details the individual contribution limits for the 2012 election year.

By MATTHEW SEMINARA

2012 is a presidential election year in the US. The election coincides with many US Senate and House of Representative elections for members of the 113th US Congress. Eleven gubernatorial election and many elections at the state level will also take place.

CORPORATE ELECTIONEERING

The 2010 United State Supreme Court’s decision in Citizens United v. Federal Election Commission has made it very easy for corporations to give unlimited amounts of money to special interest groups. The Supreme Court ruled that limitations on “corporate electioneering” violates the First Amendment of the US Constitution. It reasoned, “If the First Amendment has any force, it prohibits Congress from fining or jailing citizens, or associations of citizen, for simply engaging in political speech." The Supreme Court opined that “independent corporate political spending cannot be limited.”

POLITICAL ACTION COMMITTEES

Corporations are now entitled to make unlimited contributions or “independent expenditures” in connection with federal elections by establishing “political action committees” (PACs). There is no limit on how much any individual or entity may spend on an “independent expenditure,” however, the law does require individuals making “independent expenditures” to report and disclose the sources of the funds they used. PACs pool contributions from individuals and distribute them to candidates, political parties and other PACs. PACs are also entitled to spend money independently on political activities, including advertising and other efforts to support or oppose candidates in federal elections. PACs can accept unlimited cash contributions from corporations and unions.

PRESIDENT OBAMA SPEAKS OUT President Obama has adamantly opposed the Citizens United decision stating that it “gives the special interests and their lobbyists even more power in Washington while undermining the influence of average Americans who make small contributions to support their preferred candidates.” President Obama further stated “this ruling strikes at our democracy itself” and “I can't think of anything more devastating to the public interest.” In his 2010 State of the Union Address he said, “The Supreme Court reversed a century of law to open the floodgates for special interests – including foreign corporations – to spend without limit in our elections.” President Obama further stated, “It is a major victory for big oil, Wall Street banks, health insurance

Individual Contribution Limits (2012)

companies and the other powerful interests that marshal their power every day in Washington to drown out the voices of everyday Americans.”

OPINIONS

To date, the opinions on PACs have been politically split. Republican Senate Minority Leader Mitch McConnell (Kentucky) said: “The Supreme Court took an important step in the direction of restoring the First Amendment rights of these groups by ruling that the Constitution protects their right to express themselves about political candidates and issues up until election day.” On the opposite side of the political party spectrum, Republican Senator John McCain (Arizona) said, "As you know, I think the outside super PACs and others is so disgraceful that I'm ashamed of the United States Supreme Court in their decision on Citizens United."

Clearly, the goal of money that flows through the US political system is power and influence. Corporations and industry groups, labor unions, and individuals spend billions of dollars each year to gain access to the US political system to influence political thinking and help shape the policies of tomorrow. Americans can all agree that campaigns cannot be bought. If Citizens United proves to have provided the impetus for the sale of campaigns, it will, hopefully, not be long before this decision is overturned.•

May give for: To each candidate or candidate committee per election

To national party committee per calendar year

To state, district & local party committee per calendar year

To any other

political committee

per calendar year

Special Limits

PAC (multicandidate) $5K $15K $5K (combined limit) $5K No limit

PAC (not multicandidate) $2,5K $30,8K $10K (combined limit) $5K No limit