Jump to content

Political action committee: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
No edit summary
Undid revision 474791581 by 15.203.233.85 (talk) rv by quote from Colbert Report
Line 1: Line 1:
In the [[United States]], a '''political action committee''', or '''PAC''', is the name commonly given to a private group, regardless of size, organized to elect political candidates or to advance the outcome of a political issue or legislation.<ref>{{cite web|url=http://www.sos.ky.gov/kids/civics/glossary.htm |title=Kentucky: Secretary of State - Civics Glossary |publisher=Sos.ky.gov |date=2010-12-20 |accessdate=2012-01-04}}</ref> Legally, what constitutes a "PAC" for purposes of regulation is a matter of state and federal law. Under the [[Federal Election Campaign Act]], an organization becomes a "political committee" by receiving contributions or making expenditures in excess of $1,000 for the purpose of influencing a federal election.<ref>{{cite web|url=http://www.fec.gov/law/feca/feca.pdf |title=Federal Campaign Finance Laws |publisher=Federal Election Commission |page=1: §431. Definitions (4) |format=PDF |date=April, 2008 |accessdate=2012-01-04}}</ref> A frothy mix of lube and campaign funding that is sometimes the byproduct of politics.
In the [[United States]], a '''political action committee''', or '''PAC''', is the name commonly given to a private group, regardless of size, organized to elect political candidates or to advance the outcome of a political issue or legislation.<ref>{{cite web|url=http://www.sos.ky.gov/kids/civics/glossary.htm |title=Kentucky: Secretary of State - Civics Glossary |publisher=Sos.ky.gov |date=2010-12-20 |accessdate=2012-01-04}}</ref> Legally, what constitutes a "PAC" for purposes of regulation is a matter of state and federal law. Under the [[Federal Election Campaign Act]], an organization becomes a "political committee" by receiving contributions or making expenditures in excess of $1,000 for the purpose of influencing a federal election.<ref>{{cite web|url=http://www.fec.gov/law/feca/feca.pdf |title=Federal Campaign Finance Laws |publisher=Federal Election Commission |page=1: §431. Definitions (4) |format=PDF |date=April, 2008 |accessdate=2012-01-04}}</ref>


==Use of PACs (before 2010)==
==Use of PACs (before 2010)==

Revision as of 15:04, 3 February 2012

In the United States, a political action committee, or PAC, is the name commonly given to a private group, regardless of size, organized to elect political candidates or to advance the outcome of a political issue or legislation.[1] Legally, what constitutes a "PAC" for purposes of regulation is a matter of state and federal law. Under the Federal Election Campaign Act, an organization becomes a "political committee" by receiving contributions or making expenditures in excess of $1,000 for the purpose of influencing a federal election.[2]

Use of PACs (before 2010)

When an interest group, union, or corporation wants to contribute to federal candidates or parties, it must do so through a PAC. These PACs receive and raise money from a "restricted class," generally consisting of managers and shareholders in the case of a corporation, and members in the case of funds to candidates for federal office. Contributions from corporate or labor union treasuries are illegal, though they may sponsor a PAC and provide financial support for its administration and fundraising.

Contributions by individuals to federal PACs are limited to $5,000 per year. It is important to note, however, that as a result of the United States Court of Appeals for the District of Columbia Circuit decision in SpeechNow.org v. FEC, PACs which make only "independent expenditures" (that is, advertisements or other spending that calls for the election or defeat of a federal candidate but which is not coordinated with a federal candidate or political party) are not bound by this contribution limit.

Corporations and unions may not contribute directly to federal PACs, though they may pay for the administrative costs of a PAC affiliated with the specific corporation or union. Corporate-affiliated PACs may only solicit contributions from executives, shareholders, and their families, while union-affiliated PACs may only solicit contributions from members. "Independent" PACs not affiliated with a corporation, union, or trade or membership association may solicit contributions from the general public but must pay their operating costs from these regulated contributions.

Federal multi-candidate PACs are limited in the amount of money they can contribute to candidate campaigns or other organizations:

  • at most $5,000 per candidate per election. Elections such as primaries, general elections and special elections are counted separately.
  • at most $15,000 per political party per year.
  • at most $5,000 per PAC per year.

Under federal law, PACs are not limited in their ability to spend money independently of a candidate campaign. This may include expenditures on activities in support of (or against) a candidate, as long as they are not coordinated with the candidate.

If two or more PACs share the same sponsoring organization, they are considered to be "affiliated" and their total donations are counted under aggregate limits, i.e. the total donations from all may not exceed $5,000 for a specific candidate in a given election.

PACs must report all of the financial activities, including direct donations and other expenses, to the Federal Election Commission (FEC), which makes the reports available to the public.

Citizens United ruling

Main article: Citizens United v. Federal Election Commission

In 2010, the landmark case filed by Citizens United changed the rules regarding corporate campaign expenditures. This ruling made it legal for corporations and unions to spend from their general treasuries to finance independent expenditures. Direct corporate and union contributions to federal campaigns, however are still prohibited.[3] Thus corporations or unions seeking to contribute to federal candidate campaigns must still rely on traditional PACs for that purpose. However, they may spend money independently of campaigns without forming a PAC.

Categorization of PACs

Further information: List of political action committees

Federal law allows for two types of PACs, connected and non-connected.

Connected PACs

Most of the 4,600 active, registered PACs are "connected PACs" established by businesses, labor unions, trade groups, or health organizations. These PACs receive and raise money from a "restricted class," generally consisting of managers and shareholders in the case of a corporation and members in the case of a union or other interest group. As of January 2009, there were 1,598 registered corporate PACs, 272 related to labor unions and 995 to trade organizations.[4]

Non-connected PACs

Groups with an ideological mission, single-issue groups, and members of Congress and other political leaders may form "non-connected PACs". These organizations may accept funds from any individual, business PAC or organization. As of January 2009, there were 1,594 non-connected PACs, the fastest-growing category.[4]

Super PACs

The 2010 election marked the rise of a new political committee, dubbed the "super PAC," and officially known as "independent-expenditure only committees," which can raise unlimited sums from corporations, unions and other groups, as well as individuals.[5] The super PACs were made possible by two judicial decisions. First the U.S. Supreme Court held in Citizens United v. Federal Election Commission that government may not prohibit unions and corporations from making independent expenditures about politics. Soon after, in Speechnow.org v. FEC, the Federal Court of Appeals for the D.C. Circuit held that contributions to groups that only make independent expenditures could not be limited.[6] Super PACs are not allowed to coordinate directly with candidates or political parties since they are "independent". However, a candidate may "talk to his associated super PAC via the media. And the super PAC can listen, like everybody else," according to journalist Peter Grier, election law expert Rick Hasen[7] and former chairman of the United States Federal Election Commission Trevor Potter (the lawyer of TV satirists Jon Stewart and Stephen Colbert[8]).

Super PACs are required to disclose their donors, just like traditional PACs.[9] However, many exploit a technicality in the filing requirements in order to postpone disclosure until well after the elections they participate in.[10]

Even absent a formal connection to a campaign, Super PACs openly support particular candidacies. In the primary season before the 2012 presidential campaign, for example, the Restore Our Future Super PAC benefited Republican Mitt Romney while attacking rival Newt Gingrich.[11] In the same election, the pro-Gingrich Winning Our Future Super PAC attacked Romney.[12] Each Super PAC was run by former employees of the candidate it supported, and each attracted money from that candidate's associates.[11][12]

During the 2012 presidential campaign season, comedians Stephen Colbert and Jon Stewart created the Colbert Super PAC, which they used on their satirical TV shows to illustrate the workings of election campaigns. After the January 31, 2012, disclosure deadline, Colbert said, "To all the worrywarts out there who said Super PACs were going to lead to a cabal of billionaires secretly buying democracy - Wrong - They are publicly buying democracy." He then announced the disclosed statistic that, "Half [47.9%] of the candidates' Super PAC money...came from just 22 individuals." Colbert culminated his nearly year-long criticism of Super PACs by saying that he wants "the Google recognition of a Santorum - I will not be satisfied until 'SuperPAC' means: A frothy mix of lube and campaign funding that is sometimes the byproduct of politics."

Super PACs use "soft money", meaning they do not have a limit to how much money they may donate. On the other hand, traditional PACs use "hard money", meaning that they are required under the 503(c)(3) tax to pay a basic tax and a reduction on what they donate to.

Leadership PAC

A leadership PAC in U.S. politics is a political action committee established by a member of Congress to support other candidates. Under the FEC rules, leadership PACs are non-connected PACs, and can accept donations from an individual or other PACs. While a leadership PAC cannot spend funds to directly support the campaign of its sponsor (through mail or ads), it may fund travel, administrative expenses, consultants, polling, and other non-campaign expenses. It can also contribute to the campaigns of other candidates.[13][14][15]

Between 2008 and 2009, leadership PACs raised and spent more than $47 million.[16]

Controversial use of leadership PACs

2008 election

In the 2008 elections, the top nine PACs by money spent by themselves, their affiliates and subsidiaries were as follows:

  1. International Brotherhood of Electrical Workers PAC $3,344,650
  2. AT&T Federal PAC $3,108,200
  3. American Bankers Association (BANK PAC) $2,918,140
  4. National Beer Wholesalers Association PAC $2,869,000
  5. Dealers Election Action Committee of the National Automobile Dealers Association $2,860,000
  6. International Association of Fire Fighters $2,734,900
  7. International Union of Operating Engineers PAC $2,704,067
  8. American Association for Justice PAC $2,700,500
  9. Laborers' International Union of North America PAC $2,555,350

International campaign finance comparison

The leading democracies have different systems of campaign finance, and several have no institutions analogous to American PACs, in that there are no private contributions of large sums of money to individual candidates. This is true, for example in Germany, in France, and in Britain. In these countries, concerns about the influence of campaign contributions on political decisions are less prominent in public discussion.

See also

References

  1. ^ "Kentucky: Secretary of State - Civics Glossary". Sos.ky.gov. 2010-12-20. Retrieved 2012-01-04.
  2. ^ "Federal Campaign Finance Laws" (PDF). Federal Election Commission. April, 2008. p. 1: §431. Definitions (4). Retrieved 2012-01-04. {{cite web}}: Check date values in: |date= (help)
  3. ^ 2 U.S.C. § 441b
  4. ^ a b "News Release: Number of Federal PACs Increases", March 9, 2009, Federal Election Commission
  5. ^ "Outside Spending (2010)". Center for Responsive Politics.
  6. ^ Cordes, Nancy (June 30, 2011). "Colbert gets a Super PAC; So what are they?". CBS News. Retrieved 2011-08-11.
  7. ^ Will Jon Stewart go to jail for running Stephen Colbert's super PAC? By Peter Grier, 18 January 2012
  8. ^ Jon Stewart, Stephen Colbert Expose More Super PAC Loopholes Without 'Coordinating'
  9. ^ Eggen, Dan; Farnam, T.W. (September 28, 2010). "New 'Super Pacs' bringing millions into campaigns". Washington Post. Retrieved 2012-01-04.
  10. ^ Levinthal, Dave; Vogel, Kenneth P. (December 30, 2011). "Super PACs go stealth through first contests". Politico.com. Retrieved January 12, 2012.
  11. ^ a b Acosta, Jim (December 21, 2011). "Pro-Romney super PAC slams Gingrich". CNN. Retrieved January 10, 2012.
  12. ^ a b Confessore, Nicholas; Lipton, Eric (January 10, 2012). "A Big Check, and Gingrich Gets a Big Lift". The New York Times. Retrieved January 10, 2012.
  13. ^ Marcus Stern, and Jennifer LaFleur (September 26, 2009), Leadership PACs: Let the Good Times Roll, Pro Publica, retrieved December 10, 2009
  14. ^ "Leadership PACs and Sponsors", Federal Election Commission
  15. ^ "Congress 101: Political Action Committees", Congressional Quarterly
  16. ^ Leadership PACs, Center for Responsive Politics
  17. ^ Politics - FBI raids Doolittle house - sacbee.com[dead link]
  18. ^ "Political Action Committees". Opensecrets.org. Retrieved 2012-01-04.
  19. ^ Weisman, Jonathan; Birnbaum, Jeffrey H. (July 11, 2006). "Lawmaker Criticized for PAC Fees Paid to Wife". The Washington Post. Retrieved 2010-05-22.
  20. ^ "Pelosi PAC fined $21,000 by federal elections officials". USA Today. February 11, 2004. Retrieved May 22, 2010.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Political_action_committee&oldid=474793879"