Center for Responsive Politics

New Insights Into the Right’s Big Money Shell Game Highlight Need for the DISCLOSE Act

In today’s legal landscape, “following the money” is tricky – but a new report released yesterday shows why this work is critical to anyone who cares about progressive change. The latest digging from the Center for Responsive Politics’ Open Secrets blog has uncovered new information about a multi-tiered money laundering operation through which tax-exempt groups funnel millions to groups supporting right-wing causes and candidates. 

Operating behind a thick veil of secrecy, groups like TC4 Trust and the Center to Protect Patient Rights – which Open Secrets describes as “‘shadow money mailboxes’ – groups that do virtually nothing but pass grants through to other politically active 501(c)(4) organizations” – are able to hide both their donors and their recipients.  By funneling grants through “sub-units,” which are owned by the larger groups but have different names, groups like TC4 Trust put millions into the pockets of 501(c)4 organizations supporting Republican causes in the 2012 elections, such as the advocacy arm of Focus on the Family.

As Open Secrets reports,

[T]heir financial ties run far deeper than previously known.  The groups, TC4 Trust and the Center to Protect Patient Rights – both of which have connections to the billionaire industrialist Koch brothers – have been playing a high-stakes game of hide-the-ball, disguising transfers of millions of dollars from one to the other behind a veil of Delaware limited liability corporations.

The source of political advocacy matters.  This latest example of dark money donor groups obscuring the links of their money trail underscores the urgent need for legislation like the DISCLOSE Act.  This act would bring some basic transparency to the electoral system and require outside groups spending money in elections to disclose their donors – including the original source of donations.  The measure, which was blocked by Senate Republicans in both 2010 and 2012, is a common-sense solution that would help the American people understand who is trying to influence their political opinions and their votes.

PFAW

CitU Spending Overwhelmingly Benefits Romney

Since Labor Day, 70% of outside spending on the presidential race made possible by Citizens United has benefited Mitt Romney, according to a new analysis.
PFAW

The Partisan Advantages of Citizens United

 

Just how much has Citizens United altered the electoral landscape? While the overall amount of outside money in politics has risen dramatically with each passing election cycle, the Citizens United decision eliminated restrictions on corporate and special-interest spending to influence or elections. The result shows that the new rules have stacked the deck in favor of Republicans.

This chart from the Center for Responsive Politics shows how, while spending by outside groups has been on the rise since the 90’s, it was not until 2010 Supreme Court decision that conservatives saw a sudden, major advantage in outside-expenditure spending on their behalf:

Total Liberal vs. Conservative Outside Spending, Excluding Party Committees

As Ian Milllhiser at Think Progress notes, the much of the 2012 spending on Republican candidates went to intra-party contests during the primaries, though it will likely continue through the general election. But the overall trend is clear: As a result of the Citizens United, Republicans will continue to enjoy outsized spending on their behalf by corporations.

PFAW