CAMPAIGN FINANCE. MONEY Politicians need money to win elections. 2000 election cost over $1.1 billion!

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Presentation transcript:

CAMPAIGN FINANCE

MONEY Politicians need money to win elections election cost over $1.1 billion!

TACTICS POLITICIANS USE 1. Direct mail/online donations 2. Dinners, speeches, rallies

FUNDRAISING TACTICS 3. Interest Groups Organization of people with similar goals trying to influence legislation that affects their interests Campaign finance reform limits the direct impact Interest Groups can have financially on elections, so PACs were formed.

POLITICAL ACTION COMMITTEE Main purpose: raise money and distribute funds to influence candidates and advocate the goals of its members People often think they "buy votes" but they claim to be linkage institutions that represent the needs of the people Discussion question: How much influence to PACs have? Do they buy votes? Why? Why not?

FUNDRAISING TACTICS Super PACs (Independent Expenditure Committees) Can raise unlimited sums of money from unlimited sources (individuals, corporations, unions, etc.) Can advocate for election or defeat via TV, print, radio, online

FINANCE REFORM

FEDERAL ELECTION CAMPAIGN ACT (FECA) 1971 Disclosure of contributions and expenditures Limits individual contributions ($1,000 at that time) Leads to creation of PACs Restricts amount spent on advertising Taxpayers can donate on tax returns

FEDERAL ELECTION COMMISSION (FEC) Created after Watergate (1974) Enforce FECA Establishes public financing for presidential candidates ($250 rule/$5,000 in 20 states) Prohibits foreign contributions Restrictions on PACs ($5,000 max to a candidate)

HARD MONEY Funds that can be used for direct electioneering, but are limited by FEC

SOFT MONEY Donations to local and state political parties to be used for "general purposes" (not campaigning) Virtually unregulated by the FEC

BUCKLEY V. VALEO (1976) Limits of individual and corporate contributions do not violate freedom of speech because the law encourages representative democracy Limits on candidates spending their money on their own campaign did violate first amendment (not enough harm in it to justify limiting their freedom of expression)

BIPARTISAN CAMPAIGN REFORM ACT/MCCAIN- FEINGOLD LAW (2002) Banned use of soft money in federal campaigns Increased limits on individual and group contributions to candidates

"MILLIONAIRE'S AMENDMENT" Part of McCain-Feingold (BCRA) Increased contribution limits for candidates who faced opponents that contributed substantial funds to their own campaigns Intended to balance out money

527 ORGANIZATIONS Committees that are tax exempt in election campaign if they aren't affiliated with a political party Take stance on issues, not candidates Regulated by the IRS, not FEC Used now because BCRA eliminated soft money

MCCONNELL V. FEC (2003) The government's interest in preventing corruption overrides free speech rights that you would otherwise be entitled to BCRA restrictions do not violate free speecg

CITIZENS UNITED V. FEC (2010) Government cannot ban political spending by corporations in a candidate's election