From DNC National Press Secretary
Hari Sevugan
Fyi … the following memo went out to local editorial boards and
columnists today as the issue of anonymous donors picks up traction
with voters outside the beltway, who are starting to ask which
special interests candidates that benefit from undisclosed donors will
be beholden to. In addition to the polling noted in the memo
below, and as reported in the Washington Post this afternoon, a
SurveyUSA/MoveOn poll showed that not only are a strong majority of
registered voters aware of this issue, they also feel as if they have
the right to know who is bankrolling these ads and are LESS LIKELY to
trust a candidate who benefits from secret corporate donations “to
improve the economy.”
Memorandum
To:
Editorial
Writers
and
other Interested Parties
From:
Brad
Woodhouse,
the
Democratic National Committee
Re:
Transforming
Our
Democracy:
Secretive Donations and Anonymous Ads
Date:
October
14,
2010
Something is happening in this election that goes beyond partisan
politics, that is more important than who is up or who is down and has
potentially greater consequences than which political party comes out
on top on November 2nd. It is also something that has far
reaching consequences for our Democracy and that too few Americans know
about. What are we referring to? The growing and pernicious
effects of secret, special interest money being used to determine the
outcome of our elections.
Yesterday, the Wall Street Journal reported that four Republican groups
– Karl Rove’s American Crossroads and Crossroads GPS; former Republican
Senator Norm Coleman’s American Action Network; and the Commission on
Hope, Growth, and Opportunity, established by a Republican consultant
who managed Bob Dole’s campaign for President in 1996 – plan to launch
a $50 million coordinated advertising campaign in advance of the
November 2nd elections. Given the high stakes in this election,
such spending might seem routine, if it weren’t for the groups’
mysterious funding sources: like many other well-financed and highly
active Republican organizations this year, three of the four groups
participating in the $50 million campaign refuse to reveal their donors
while the fourth does so only infrequently.
Anonymous special interests and unnamed corporations are pouring tens
of millions of dollars into electoral politics this fall, money that
has the potential to tip the scales in close races across the country,
with the vast majority of such spending by any measure benefiting
Republican candidates. Yet the American people have absolutely no
way to evaluate the motives behind these ads which are being produced
by groups created explicitly to raise unlimited funds and to hide the
identities of their special interest sponsors.
As the Media Matters Action Network noted yesterday morning, Republican
groups have “dropped a CEO's salary to influence our elections in just
a few days. Makes you wonder what they're expecting in return…”
It’s a question that voters, pundits and the press should be asking
this election season as our democracy and electoral process is being
auctioned off to the highest bidder – in secret.
From big oil to big insurance to, potentially, big foreign companies,
the special interests funding third-party electoral groups this year
aren’t simply interested in bankrolling campaigns– they expect results
from the candidates they support. And if you take a close look at
the policies adopted by many of the Republican candidates backed by
such groups this year – from rolling back health insurance reform and
its Patients’ Bill of Rights to undoing Wall Street reform to opposing
legislation that would roll back special interest tax breaks which have
resulted in American companies shifting jobs and profits overseas
– it seems those groups might already be getting what they’re paying
for.
And all of this, of course, was not unforeseen – the vast rise in
corporate and special interest spending by right wing groups in support
of Republican candidates expected to do their bidding in Congress in
the aftermath of the Citizens United decision was predicted by everyone
from President Obama to neutral observers, pundits and campaign
watchdog groups. And, it has played out exactly as predicted:
Ø Numerous right-wing groups, many founded by the
architects of the failed economic policies of the last decade which
benefited the well-to-do and the corporate special interests, grew like
weeds.
Ø Big banks, big insurance companies and big oil used
these groups to fight tooth and nail against President Obama and
Democrats’ efforts to pass needed reforms to health care, Wall Street,
student lending and our use of energy.
Ø Republicans joined big banks, big insurance companies
and big oil in opposing these reforms and blocking others that would
benefit middle class Americans at the expense of the corporate special
interests.
Ø Republicans have joined big banks, big insurance
companies and big oil in fighting to return to the failed policies of
the previous administration, including extending the Bush tax cuts for
the wealthiest Americans at a cost of $700 billion and preserving
special interest tax breaks which encourage American companies to shift
jobs and profits overseas.
Ø Republicans joined their corporate special interest
allies, the very entities which had the most to gain by influencing
elections as a result of the Citizens United decision, in blocking the
Disclose Act, which would have at least required these groups to reveal
who is behind the millions of dollars in attack ads.
Ø And now, by a margin of almost nine to one, Republican
candidates are benefiting over Democratic candidates from the spending
of outside groups that take unlimited funds from secret donors.
All of this is not a coincidence. Republicans in Congress
support policies favoring the super rich and corporate special
interests at the expense of middle class families. Republicans
oppose requirements that groups taking money from corporate special
interests disclose their donors. Republicans receive a massive
infusion of secret, special interest spending in support of their
campaigns. Need one even ask what will happen when the sources of
all these contributions come calling on Republicans on Capitol
Hill?
With that in mind, there are three things that should be understood
regarding outside spending this year:
1. Third-party expenditures this year are
unprecedented in size and scope, and overwhelmingly benefit Republican
candidates;
2. Republicans enabled and embraced
anonymous expenditures by cheering the Citizens United Supreme Court
decision, which opened up the floodgates for this type of spending and
by blocking the DISCLOSE Act, which would have required these groups to
disclose their sources of funding so the public could evaluate the
motives behind these ads for themselves;
3. The American people are angry
about this perversion of the Democratic process, because they deserve
to know who the candidates they are voting on will be fighting for in
Congress.
Outside
Spending in the 2010 Midterms is Dwarfing Outside Expenditures Made in
the 2006 Midterms
According to a Washington Post analysis, outside interest groups are
spending five times as much ($80 million) on the 2010 midterms as they
did in the 2006 midterm elections ($16 million). In addition,
more than half of the money being spent this year comes from groups
that do not disclose their donors. In contrast, the donor sources
of more than 90% of the 2006 expenditures were disclosed. [Washington
Post, 10/4/10]
According to the Wall Street Journal, “Evan Tracey, head of Campaign
Media Analysis Group, which tracks campaign-ad spending, called the
combination of ad outlays by the groups ‘historic’ in its size, an
assessment echoed by other campaign-finance experts and
officials. [Wall Street Journal, 10/13/10]
In addition, those outlays are going primarily to Republican
candidates. Indeed, the Wesleyan Media Project reported that
outside interest groups are spending almost nine times as much on
Republican candidates as they are on Democratic candidates and among
the top ten interest group spenders, Republican-leaning organizations
have outspent Democratic ones by ten-to-one. [Wesleyan Media
Project, 10/13/10] In fact, in some races outside spending has
topped spending by campaigns. In the Colorado Senate race for
example, outside groups including Karl Rove’s American Crossroads have
spend $6.5 million since August 10 on advertisements, many of them for
Republican candidate Ken Buck. In contrast, the Buck campaign
itself has spent just $1.1 million and the Bennet campaign has spent
just short of $2 million. [Denver Post, 10/5/10]
| Senate
Race |
Combined
Spending
By
American Crossroads, Crossroads GPS and American Action Fund |
Colorado
|
$3,611,388.38
|
Illinois
|
$3,357,041.70
|
Missouri
|
$2,348,249.60
|
Nevada
|
$1,952,090.15
|
Washington
|
$1,546,082.80
|
Florida
|
$1,221,562.01
|
Kentucky
|
$1,108,865.78
|
Ohio
|
$820,605.00 |
Pennsylvania
|
$809,195.70 |
New Hampshire
|
$658,330.00 |
Wisconsin
|
$455,000.00 |
Secret
Donations and Increased Outside Spending Have Been Embraced &
Applauded by Republicans
The Citizens United Supreme
Court decision, which opened the door to this year’s flood of anonymous
donations and third-party spending, was cheered by Republican leaders.
Senate Minority Leader Mitch McConnell said that with the Citizens
United decision, the Supreme Court took a step toward “restoring…first
Amendment rights.” [AP, 1/21/10] RNC Chairman Michael
Steele said that decision served as “an affirmation of the
Constitutional rights provided to Americans under the first Amendment.”
[RNC Statement, 1/21/10] And Senator John Cornyn said, “I can’t
think of a more fundamental first Amendment issue.” [New York
Times, 1/9/10]
In addition to supporting the
Citizens United decision, which places the well-being of special
interests above the best interests of middle-class American voters,
Republicans have repeatedly blocked passage of the DISCLOSE Act, which
would increase disclosure requirements regarding donors to outside
interest groups. Only two Republicans supported passage of the
DISCLOSE bill in the House, and Republicans continue to filibuster this
critical legislation in the Senate.
The
American People are Angry at the Amount of Special Interest Spending,
and They Overwhelmingly Support Efforts to Limit Corporate Influence on
Elections
According to a recent Hart Research Associates poll, 85% of Americans
worry that corporations have captured too much influence in the
political system and 77% think Congress should support measures to
limit the amount that U.S. corporations can spend to influence
elections. [Washington Independent, 7/27/10]
In addition, 47% of respondents in a recent Bloomberg polls said they
would be less likely to support a candidate whose campaign was aided by
advertising by anonymous business groups. [Bloomberg, 10/10/10]
430 SOUTH CAPITOL STREET, SE,
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###
Hari Sevugan
National Press Secretary
Democratic National Committee
o: (202) 479-5148
m: (312) 203-2207
AIM: HarisForObama