Loophole Allows Anonymous Corporate Attacks
March 1, 2010
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So, here’s the bottom line deal, using a non-profits who deal with more than just political attacks, Corporations are allowed to
A. Spend unlimited money on electioneering and
B. Hide that money so no one knows who’s funding the attacks
The actual result is well-connected people will establish such non-profits. Set them up with some side-job, like helping homeless people or caring for sick old people. Something really nice like. Then, they’ll be able to get unlimited donations from corporate donors and spend that money however they want. But, because they are set up for more than just attacks ads, they’re allowed to run attack ads without telling anyone where the money is coming from.
Expect some start up non-profits with names like “American’s who love children and rainbows” to take a hard look at any Senator threatening Wall Street.
The Supreme Court decision last month allowing corporations to spend unlimited money on behalf of political candidates left a loophole that campaign finance lawyers say could allow companies to pay for extensive political advertising while avoiding the disclosure requirements the court appeared to leave intact.
Senator Charles E. Schumer of New York proposes requiring nonprofit groups to identify donors for political advertising.
Experts say the ruling, along with a pair of earlier Supreme Court cases, makes it possible for corporations and unions to donate anonymously to nonprofit civic leagues and trade associations. The groups can then use the money to finance the types of political advertisements that were at the heart of last month’s ruling, in Citizens United v. Federal Election Commission.
Well before the Citizens United case, certain types of nonprofit organizations were able to pump millions of dollars into “electioneering communications” — highly pointed commercials about political issues that can even mention specific candidates — without revealing their donors.