Campaign Reformers' Blind Spots
I appreciate all the responses to my essay in Democracy on campaign finance reform, which were a reminder to me that much of the rethinking about how to prevent economic inequality from being reinforced by political inequality that I called for is already underway.
Most of the responses were either expansion or clarification of my points, or thoughtful alternate views, and don't really call for any reply other than gratitude. I should, however, reply to the more comprehensive critique from Paul Ryan of the Campaign Legal Center. And at the end, I'll say a bit about Jeff Faux's suggestion of a constitutional amendment giving Congress the power to limit spending.
I had a lot of trepidations about the article and the possibility that I had overstated the argument that limits-based reformers were blind to shortcomings of their own approach of endlessly chasing loopholes.
But Mr. Ryan's response (we don't know each other, which I presume is why he referred to me as "Mr. Schmitt," so I'll extend him the same courtesy), which amounted basically to shouting, "Look! Loopholes!!!" and rebutting arguments other than those I made deepened my conviction that reformers really are unable to hear skeptical voices, though I doubt that was his intent.
More than his critique of my article, I was struck that Mr. Ryan made little effort to argue that the federal campaign law as amended in 2002 has been successful on the terms promised.
Indeed, I think I'm more generous to the law than some of its supporters, as I give it credit for getting candidates out of the business of raising soft money and pushing some money into independent groups that are likely to be more ideological than the influence-seeking soft-money donors, which in some small ways are positive things.
Mr. Ryan begins by claiming that I start from a "flawed premise" that campaign finance reform began a decade ago, rather than in 1974. Indeed, if I were as ignorant as Mr. Ryan seems to think I am, my arguments would not be worth listening to, much less responding to. I'll stand by what I actually wrote: "since the radical changes of the 1974 Campaign Finance Act, [campaign reform] had been an insiders’ game, with little effort to build a grassroots movement or do more than sand down the rough edges of the system." I doubt that anyone involved would disagree that there was a significant change in the 1996-97 period, with a major influx of new money, emergence of new organizations such as the Brennan Center, Public Campaign and a few years later Mr. Ryan's own Campaign Legal Center, a concerted effort to build a grassroots movement, a concerted effort to use state and local victories to move national reform, a shift in focus from PACs to soft money and public financing, and a new set of allies. Taken together, those qualititative changes in the reform effort make the past decade a useful unit of analysis in trying to assess whether reform lived up to its own promises.
(Incidentally, 1974 is not Year Zero for reform either. Julian Zelizer's 2004 book On Capitol Hill includes a fascinating account of the reform movement of the 50s and 60s, when the best advocate for reform was the AFL-CIO lobbyist. Times do change...)
On the issue of the year-long fight over regulation of blogs and the internet, Adam Bonin's response is sufficient, and better informed. Yes, the reformers "applauded" the eventual resolution at the FEC, after fighting it for a year.
On the issue of 527 organizations, Mr. Ryan argues that most such organizations should be "registered as political committees." He's not responding to my argument here, and I basically agree. A quick definition of a 527 is that it is a group that is treated by the IRS as a political committee, and while most are also registered with the FEC as political committees, some that should be -- in that they have no purpose other than to affect federal elections -- are not. That is, indeed, a loophole. But having discovered the 527 loophole, reformers in 2003 noted that if all 527s were required to register as political committees, the next loophole that might emerge would involve some non-profit organizations (501(c)4's -- contributions to which are not tax-deductible), which could be used for the same purposes. And so if all 527s were registered as political committees, limited to hard money, the money might move to non-profits, and reformers would have to close that loophole, and then the next and the next. That was the issue I raised. As I said, each loophole-closing makes sense in its own narrow terms; it's the overall direction that's crazy. I also pointed out that all the activity that went through 527s could just as easily be done by individuals acting without an organized committee, and that such activity would be constitutionally protected. My point was that by going after organized activity, and not unorganized activity, reformers were in effect fighting political organization itself. I stand by that argument, and Mr. Ryan is welcome to respond to it, and not to some other argument.
In response to my point that reformers should not "overtax the corruption rationale," Mr. Ryan again responds to someone else's argument, suggesting that I am proposing that he and other lawyers "use limited resources to pass laws that stand little or no chance of surviving the inevitable legal challenge." NO! I am proposing no such thing! There is a faction that wants to use political equality or other rationales to justify either very low contribution limits ($100 was fashionable in the 1990s) or limits on total spending. Such reforms are unwise (low limits have the effect of pushing the entire campaign to outside groups) as well as unconstitutional. But Mr. Ryan reveals the blinkers on his vision when he writes that "courts have accepted only two justifications for campaign finance reform laws --reducing real and apparent corruption." Substitute the word "restriction" for "reform," and he is right. That is, so far, the only rationale that courts have accepted as justification for restricting campaign contributions or political speech has been corruption. But reform that expands political speech as I have proposed face no such obstacle in the courts, and indeed, a certain amount of balancing -- such as voluntary spending limits -- is possible in the context of an expansive reform. It is telling that Mr. Ryan doesn't even recognize that "reform" and "restrict" are not interchangeable words!
Mr. Ryan responds to my comments on the Supreme Court's decision to reconsider its decision to uphold BCRA's provision requiring that ads that mention a candidate in the weeks before an election be paid for with regulated money by arguing the case itself, which involves ads run by Wisconsin Right to Life (WRTL) asking voters to call Senator Feingold and ask him not to filibuster Bush's judicial appointees. I'll "have to find a better example," Mr. Ryan says, although I didn't use the specifics of that case as an example. But let's get into it: Mr. Ryan's case rests in its entirety on the argument that WRTL also opposed Feingold's reelection, and thus the ads, whatever their actual content, were really meant to influence the election. This suggests that the analysis might be different if the group supported Feingold, or was neutral in the election, even though such ads would be caught in the law's net as well. I'm sorry, but asking courts or the FEC to decide that some ads would be regulated because the sponsor's intent was to influence the election while another with similar content would be unregulated because its sponsor's intent was actually lobbying seems to me to empower government agencies to engage in a ridiculous parsing of free speech. And letting ads that really are intended to encourage the public to engage in public debate on an issue -- deeply protected political speech -- get caught in the regulatory net is equally undesirable. Far better to scrap the whole thing -- as I'm quite confident the Court will do -- and find another path.
On Mr. Ryan's other points, yes, there are indeed similarities among the kinds of expansive laws I favor and other federal laws, such as the obsolete and now failed presidential public financing system, which unlike New York City's matching system or Minnesota's tax credit has never been refined or improved. I probably drew too sharp a line between these types of reforms, but the distinctions -- which Mr. Ryan doesn't seem to see -- are as important as the similarities.
Finally, on Jeff Faux's suggestion of a constitutional amendment to allow Congress to limit total spending, he is right to say, "I think Mark’s old boss, Bill Bradley once proposed the same thing." Indeed, I have a vivid memory of getting that amendment drafted for Bradley, him signing it, and taking it down to the Senate floor myself to be introduced. And I'm ashamed of it. I want nothing to do with sullying our Constitution with an amendment that would be the very first to limit the scope of the First Amendment. Further, such an amendment would never be ratified, and should never be ratified, so those who say that there is no solution other than amending the Constitution are basically saying there's no solution. But there is promise in expansive reforms that don't force head-on confrontations with the First Amendment!












Pardon me for having a life and all, but I did read the original articles ... and I now totally forget what details of "expansive arguments" you proposed that would actually lead us to a better situation.
They don't seem to be presented in this article. Where would you lke us to go?? Is there ANYTHING we can do against the power of right-wing millionaires to create smokescreens of massive un-truth, by using advertising and public relations campaigns to promote lies (in additon to the mystic powers they hold over the major media which somehow always allow the right-wing lies a major place in so-called "news" presentations while totally stuffing the truths of the liberal, progressive and radical critics).
One reform I would like to see in general, including political campaigns but not limited to them, would be a whopping tax on ALL advertising and public relations campaigns over a very low limit, $50,000 or $100,000.
They are stretching the truth for the benefit of their client, and society needs to be re-imbursed for that ... with a crisp, clear tax of 75% or 125% on all their expenditures over the limit -- and no loopholes or exclusions whatever.
If they want to get their message out, they will pay ... and other taxes can be lowered, and the size of these campaigns will be limited, as even big-business millionaires run up against spending constraints.
If all candidates were then mandated 10 minutes of prime time per week in election season through FCC powers, I hope and pray the courts would agree that this poses no constitutional barrier to protected political speech.
The other thing would be to go after all judicial (& political) candidates: you must overturn Buckley vs. Valeo (the main case saying money spending equals free protected speech) or we just ain't gonna support you or confirm you.
But that would take discipline on the part of progressives, so that's unlikely. Yet I'm still hanging in limbo, I still don't understand, what are you proposing that will actually stand in the way of the next Swift Boat campaign ?
March 20, 2007 10:29 AM | Reply | Permalink
Corruption:
corruptness: lack of integrity or honesty (especially susceptibility to bribery); use of a position of trust for dishonest gain
putrescence: in a state of progressive putrefaction
decay of matter (as by rot or oxidation)
moral perversion; impairment of virtue and moral principles; "the luxury and corruption among the upper classes"; "moral degeneracy followed intellectual degeneration"; "its brothels, its opium parlors, its depravity"; "Rome had fallen into moral putrefaction"
destroying someone's (or some group's) honesty or loyalty; undermining moral integrity; "corruption of a minor"; "the big city's subversion of rural innocence"
inducement (as of a public official) by improper means (as bribery) to violate duty (as by commiting a felony); "he was held on charges of corruption and racketeering"
wordnet.princeton.edu/perl/webwn
Election:
a vote to select the winner of a position or political office; "the results of the election will be announced tonight"
the act of selecting someone or something; the exercise of deliberate choice; "her election of medicine as a profession"
the status or fact of being elected; "they celebrated his election"
the predestination of some individuals as objects of divine mercy (especially as conceived by Calvinists)
wordnet.princeton.edu/perl/webwn
Fraud:
intentional deception resulting in injury to another person
imposter: a person who makes deceitful pretenses
something intended to deceive; deliberate trickery intended to gain an advantage
wordnet.princeton.edu/perl/webwn
Incompetence:
lack of physical or intellectual ability or qualifications
inability of a part or organ to function properly
wordnet.princeton.edu/perl/webwn
Campaign:
political campaign: a race between candidates for elective office; "I managed his campaign for governor"; "he is raising money for a Senate run"
run, stand, or compete for an office or a position; "Who's running for treasurer this year?"
a series of actions advancing a principle or tending toward a particular end; "he supported populist campaigns"; "they worked in the cause of world peace"; "the team was ready for a drive toward the pennant"; "the movement to end slavery"; "contributed to the war effort"
several related operations aimed at achieving a particular goal (usually within geographical and temporal constraints)
crusade: exert oneself continuously, vigorously, or obtrusively to gain an end or engage in a crusade for a certain cause or person; be an advocate for; "The liberal party pushed for reforms"; "She is crusading for women's rights"; "The Dean is pushing for his favorite candidate"
an overland journey by hunters (especially in Africa)
go on a campaign; go off to war
wordnet.princeton.edu/perl/webwn
------------
These are some handy references to turn to when reviewing the news, and the expressed and evident intentions of people seeking public office in our country today. Money roughly equates to power, power tends to corrupt...
March 20, 2007 11:34 AM | Reply | Permalink
Overturn Buckley.
I agree. Does anyone truly believe that we didn't have free speech in this country during the amost 200 years of it's pre-Buckley experience?
The principle of the golden mean asserts that virtue is a point on a continuum between two vices, but special interest groups tend to be absolutist in all of their views. The NRA wants ALL guns to be legal. The ACLU wants absolute freedom of speech. But they are blind to the fact that huge sums of money can buy so much speech (advertising, propaganda, etc.) that the voices of reason are drowned out in the din.
March 20, 2007 2:47 PM | Reply | Permalink
First, I think BCRA was entirely successful on the terms promised. BCRA had two pillars: (1) “electioneering communication” provisions intended to restore the effectiveness of the corporate/union treasury fund expenditure ban where the “functionally meaningless” express advocacy standard had failed; and (2) a prohibition on candidate and party solicitation and spending of unlimited “soft money.” Both of these goals, I believe, were achieved.
Second, I won’t quibble further over the significance of the last decade of reform efforts. I’ll simply state that I personally know many “reformers” (both volunteer activists and professionals) who have been working on campaign finance issues steadily since the 1970s, at the local, state and federal level. I was formerly employed by an organization founded in 1983 and dedicated to campaign finance reform. I’ve studied campaign finance reform legislation introduced in Congress, as well as at the state and local level, through the 1980s, including federal bills to create Congressional public financing systems of the sort we both seemingly approve of. Perhaps interest increased in the late 1990s. You're certainly entitled to your opinion that it did.
Regarding the regulation of Internet political activity, I’ve responded here , in detail, to Adam Bonin’s comments.Regarding 527 organizations, I’m not sure which reformers you’re referring to when you state that their intent, after regulating 527 organizations was to go after 501(c) organizations. The Campaign Legal Center has consistently taken the position that any 501(c) organization acting in compliance with its tax status would never be subject to regulation under federal law as a “political committee.” Whereas 527 groups must, under tax law, have a primary purpose of influencing candidate elections, 501(c) organizations may not lawfully have a primary purpose of influencing candidate elections. To be certain, some opponents of the 2004 proposed FEC 527 rule claimed that reformers would come after 501(c)s next, but the Campaign Legal Center’s legal theory regarding the 527 issue is entirely inconsistent with such an accusation. Ironically, the FEC refused to subscribe to the legal theory advocated by the Campaign Legal Center and, instead, followed the advice of our opponents—and in recent enforcement actions against 527 groups, the FEC has announced that it will go after 501(c) groups to regulate them as political committees. The Campaign Legal Center’s approach to the 527 issue would have provided far more clarity of law for 501(c) groups.Regarding the claim that “reform that expands political speech as I have proposed face no such obstacle in the courts,” I presume that you’re referring to the public financing programs you identified as models of small-donor democracy enhancing campaign finance reform. However, these laws do face regular legal challenges, and the Campaign Legal Center is currently involved in the defense of public financing laws in several federal court lawsuits. And in all of the lawsuits, the plaintiffs challenging the laws are demanding that the laws’ defenders prove to the court how public financing program elements (such as the provision of matching public funds to candidates faced by high spending opponents) prevent real or apparent corruption. In short, virtually all campaign finance litigation—even lawsuits challenging public financing laws—are waged on the battlefield of “preventing real or apparent corruption,” whether we like it or not.Regarding BCRA’s “electioneering communication” provisions, you’ve made clear that your preference is to scrap the law. I, by contrast, hope that the Supreme Court sticks to its reasoning in its 2004 decision in McConnell—in which held that the government may permissibly restrict the political activities of corporations and labor unions, so long as the government allows any individual associated with these entities to engage in all the political activity they want through a PAC. I certainly won’t try to change your mind. I just hope you’re wrong about the Court.Finally, I think the similarities between federal law and the public financing models you cite as models are at least as important as the distinctions. In short, I don’t think any of the public financing laws would work without the limits they all incorporate—limits very similar to those in federal law that you’d like to see scrapped. Further, I don’t think legislators or taxpaying voters would approve public financing systems without limits. Reasonable minds can certainly disagree on which limits, precisely, should be eliminated and which retained, without destroying the effectiveness of public financing programs. But, interestingly, the administrators of virtually all of these public financing programs have, over the years, observed the development of loopholes in their laws and then attempted to close them—in order to preserve the small-donor democracy enhancing nature of their laws.Paul Seamus Ryan
FEC Program Director & Associate Legal Counsel
The Campaign Legal Center
March 20, 2007 4:28 PM | Reply | Permalink
Regarding fair regulation of the Internet, you ignored his most damning critique -- that you all tried to argue that Dailykos should be subject to regulations that "The Nation," isn't.
thosethingswesay.blogspot.com
March 20, 2007 9:12 PM | Reply | Permalink
The gold mean does not always lead to wisdom. Sometimes, the compromise between two points of view is the worst of all options.
I'm with the ACLU on this one.
If I have a billion dollars and want Edwards to be president, why shouldn't I be able to spend that money saying so?
As long as you know who I am and what I'm paying for, there shouldn't be a problem.
thosethingswesay.blogspot.com
March 20, 2007 9:15 PM | Reply | Permalink
Mark
Is this "Minnesota's tax credit" you refer to the same as "the Minnesota $50 person $100 per couple campaign contribution refund program"?
Stephen from Minneaplis
March 21, 2007 10:59 AM | Reply | Permalink
AdamB at DailyKos has the answer:
This fixes most of the problems. You don't have to be a millionaire to challenge an incumbent. You do have to appeal to ordinary people. You get the public money late in the race when you need it, and you get suddenly outspent by an influx of outside money.
March 21, 2007 11:54 AM | Reply | Permalink
Paul, since your blog neither allows comments nor apparently has many readers, I had no idea about that post until today, so let me respond here.
If you're now going to claim "No one was opposing you!" with regards to the netroots desire for a regulation-free blogosphere, maybe you could clarify a few things:And he wonders why we're cynical.
March 21, 2007 1:28 PM | Reply | Permalink
Ryan to Schmitt: "I’m not sure which reformers you’re referring to when you state that their intent, after regulating 527 organizations was to go after 501(c) organizations."
Mark S. said no such thing about anyone's intent. He pointed out in the post above how the effect of regulating 527s is to push the same activity, and then the drive for regulation, to 501(c)s.
This kind of uncharitable misreading on your part reinforces Mark's point about the level of resistance to criticism.
For my part, since you are the FEC Program Director at the CLC, I'd very much value your response to my anguish, as an officer of a Democratic committee in a small rural county, about the restrictions the BCRA, and the FEC's increasingly stringent interpretations of it, have placed on our activities.
Specifically, without forming a federal committee and reporting to the FEC every 30 days for the rest of our natural lives (something only three local committees in my state are large and frustrated enough to have done), we are forbidden to:
The inability to register voters, campaign for our candidates with localized messages, and even get out the vote makes the only meaningful role for local party committees that of fundraising.
I would very much like to see these restrictions lifted for local committees whose money is raised and spent locally. The California Democratic Party joined McConnell exactly because they feared the BCRA would have the effect it is now having: making local party committees pointless.
March 22, 2007 8:25 AM | Reply | Permalink