Unit 2 Ch 6-11 Inputs to US Government. Campaign Finance Early days –No restrictions on hard money Direct donations to candidates from people/organizations.

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Unit 2 Ch 6-11 Inputs to US Government

Campaign Finance Early days –No restrictions on hard money Direct donations to candidates from people/organizations –Concerns about corruption Big donors “buying” politicians

Campaign Finance Laws Reform lacked support among elected officials –Elected from existing system –Reform might jeopardize ability to keep winning

FECA (1971) Federal Election Campaign Act –1 st major campaign finance reform –Sought to limit influence of big $ in US elections –Amended – strengthened in 1974 Corruption concerns post-Watergate

FECA (1971) Limits placed on campaigns: –Use of candidate’s personal money –Donations by private citizens –Expenditures made by campaign –Disclosures to Federal Election Commission required

Buckley v. Valeo Overturned limits on: –Use of candidate’s own money –Expenditures of campaign Allowed limits on donors

Current donation limits All numbers are annual –Individual  candidate: $2500 –Individual  natl party: $30,800 –Individual  state party: $10,000 All donations within 2 years can’t exceed $117,000

Campaign Finance Laws Soft money –Donations to political party Used for “party building activities” Not used for direct campaigning, but close – supporting candidates –Not regulated under FECA So was unlimited

BCRA (2002) Bipartisan Campaign Reform Act (McCain-Feingold Law) –Limited donations to parties Stopped unlimited soft money –Req “stand by your ad” statements “I’m (name) and I approve this message”

Campaign Finance Laws So what do big donors do? –Want to fund campaigns (ads) Can’t donate big $ to candidate Can’t donate big $ to parties –Spend big money on own ads

Campaign Finance Laws 527 groups –IGs running own political ads –Can’t coordinate activities with parties or campaigns ( !)

Campaign Finance Laws Pres. Election Campaign Fund –Taxpayers may designate $3 of their income tax to the fund No corresponding increase in income tax (IRS loses $3) < 10% of taxpayers designate