National: Big-bucks donations to super PACs keep the GOP race going | USAToday.com

More than two-thirds of the money to super PACs aligned with presidential candidates came from megadonors who each contributed $500,000 or more, demonstrating how a handful of wealthy interests have helped turn the GOP presidential primary into the longest-running nomination fight in a generation. No group relied more heavily on a few super donors than the political committee backing former House speaker Newt Gingrich: 96% of contributions to the pro-Gingrich Winning Our Future came from this elite group, a USA TODAY analysis shows. More than $16 million flowed from a single source: Las Vegas casino titan Sheldon Adelson and his relatives. Restore Our Future, a super PAC aiding former Massachusetts governor Mitt Romney, relied on nearly 52% of its contributions from corporations or individuals who gave $500,000 or more, the lowest share of super donors among the candidate-aligned super PACs analyzed by USA TODAY.

National: Rules of the Game: Bad News for Nation’s Nonprofits | Roll Call

In an election that until lately has been dominated by super PACs, politically active nonprofits are the new bad guys, drawing ethics complaints, letters to the IRS and legislative action. That is bad news for the nation’s 1.6 million nonprofits, which have much to lose as their sector gets dragged into political money controversies. For reform advocates, the problem with big-spending, secretive nonprofits is that they answer to no one and keep voters in the dark. But the worst damage inflicted by unrestricted, undisclosed campaign money could be on nonprofits themselves. “Charitable organizations depend on the confidence and trust of the public for support,” said Diana Aviv, president and CEO of Independent Sector, which represents the nonprofit and philanthropic community. Campaign spending by nonprofits, she added, could pose “a serious reputational risk” to the sector.

Voting Blogs: Big Money in Politics Makes U.S. Economy “Fundamentally Unsound” | PolicyShop

The International Monetary Fund’s former chief economist recently described one of the world’s leading economies as fundamentally unsound because the political process is captured by financial firms. But he wasn’t talking about just any banana republic. He was talking about the U.S.A. In the article “Why Some Countries Go Bust”, Adam Davidson discusses a new book in which economist Daron Acemoglu argues that “the wealth of a country is most closely correlated with the degree to which the average person shares in the overall growth of its economy”. In other words, economic inequality is itself predictive of economic decline. The book includes historical studies showing how “fairly open and prosperous societies can revert to closed and impoverished autocracies.”

National: ‘Super PACs’ Supply Millions as G.O.P. Race Drains Field | NYTimes.com

The Republican presidential candidates are running low on campaign cash as expensive primaries in states like Maryland, New York and Pennsylvania loom, leaving them increasingly reliant on a small group of supporters funneling millions of dollars in unlimited contributions into “super PACs.” Mitt Romney raised $11.5 million in February but spent $12.4 million, according to reports filed with the Federal Election Commission on Tuesday. He began March with $7.3 million in cash, slightly less than in January. Rick Santorum raised more than $9 million in his best month yet, but spent $7.9 million; he ended with $2.6 million in cash, along with close to $1 million in debts, mostly associated with television and Internet advertising. Newt Gingrich raised $2.6 million, spent $2.9 million and had about $1.5 million in the bank, barely enough to keep his campaign going. He also began March with myriad debts totaling over $1.5 million for expenses like media placement, security services, salaries and airfare.

National: Could Corporations Take Tax Breaks on Political ‘Dark Money’? | ProPublica

The Supreme Court’s 2010 Citizens United decision opened the way for unlimited corporate spending on politics and has led to the proliferation of nonprofit political groups that do not have to disclose the identities of their donors. But corporations may be getting another benefit from anonymous donations to these groups: a break on their taxes. It all starts with the so-called social welfare groups that have become bigger players in the political world in the wake of Citizens United, which knocked down restrictions on campaign activity by such groups. Tax experts say it’s possible that businesses are using an aggressive interpretation of the law to wring a tax advantage out of their donations to these groups. It’s almost impossible to know whether that’s happening, partly because the groups — also known by their IRS designation as 501(c)(4)s — aren’t required to disclose their donors. (That’s why the contributions have been dubbed “dark money.”)

National: Post-Citizens United Money May Swamp Congressional Candidates | Huffington Post

Political spending by deep-pocketed donors and cash-rich corporations threatens to sow chaos in this year’s congressional races, political consultants warn. A billionaire or corporation writing a check for $1 million — or even $10 million — isn’t enough to swing a presidential election. But when it comes to congressional campaigns, it could be plenty. “You can work for months and years to develop a fundraising advantage over your opponent of $2 million, $5 million or $10 million. And all that can be wiped out in seconds by a few people giving to a super PAC,” said Democratic pollster Mark Mellman.  While Republican and Democratic candidates are, in theory, equally susceptible to that kind of unlimited outside money, it’s the Democrats who sound much more alarmed.  “No one is safe, and everyone’s got to protect themselves,” said Democratic strategist Hank Sheinkopf. “Super PACs can strike at any time they want.”

National: Federal contractors donate to ‘super PAC’ backing Romney – unclear whether such giving is still banned after Citizens United | latimes.com

A “super PAC” that has spent more than $35 million on behalf of Republican presidential hopeful Mitt Romney has accepted donations from federal contractors despite a 36-year-old ban against such companies making federal political expenditures. At least five companies with government contracts gave a combined $890,000 to Restore Our Future, the pro-Romney super PAC, a review of federal contracting records and campaign finance data shows. Other super PACs, including Republican-allied American Crossroads, and Priorities USA Action, which backs President Obama, have language on their websites warning that federal contractors are not allowed to make donations. Restore Our Future does not list the prohibition on its website.

National: Post-Citizens United Money May Swamp Congressional Candidates | Huffington Post

Political spending by deep-pocketed donors and cash-rich corporations threatens to sow chaos in this year’s congressional races, political consultants warn. A billionaire or corporation writing a check for $1 million — or even $10 million — isn’t enough to swing a presidential election. But when it comes to congressional campaigns, it could be plenty. “You can work for months and years to develop a fundraising advantage over your opponent of $2 million, $5 million or $10 million. And all that can be wiped out in seconds by a few people giving to a super PAC,” said Democratic pollster Mark Mellman.  While Republican and Democratic candidates are, in theory, equally susceptible to that kind of unlimited outside money, it’s the Democrats who sound much more alarmed.  “No one is safe, and everyone’s got to protect themselves,” said Democratic strategist Hank Sheinkopf. “Super PACs can strike at any time they want.”

National: Super PACs’ $500,000-Plus Donors Account For Majority Of Money | Huffington Post

Tales of super PAC spending in the Republican presidential race talk about the millions of dollars pouring into their coffers. A few specific donors are mentioned. There’s Sheldon Adelson, the casino magnate whose contributions have kept Newt Gingrich in the contest far longer than his own meager fundraising would normally have allowed. And hedge fund billionaire Ken Griffin, who recently told the Chicago Tribune that he thinks the wealthy “actually have an insufficient influence” in the political system. But Griffin has given only $400,000 to super PACs in the 2012 cycle, which puts him on the lower end of the scale of leading super PAC donors.

Alabama: Super-PAC Ads Dominate Republican Race in Alabama, Mississippi | Bloomberg

Television advertisements in Alabama and Mississippi promoting rival Republican presidential contenders have been paid for almost entirely by independent political action committees instead of the candidates’ campaigns. So-called Super-PACs supplied 91 percent of the 5,592 campaign ads that aired on broadcast television stations in the two states in the past month, according to data from New York- based Kantar Media’s CMAG, which tracks advertising. Alabama and Mississippi hold primary elections today, and polls indicate a close race in each among former Massachusetts Governor Mitt Romney, former Pennsylvania senator Rick Santorum and former U.S. House Speaker Newt Gingrich.

Illinois: Federal judge says super PACs not bound by Illinois limits on contributions | chicagotribune.com

Political action committees that act independently of a candidate are not bound by Illinois’ limits on campaign contributions aimed at curbing corruption, a federal judge ruled Tuesday. In a case brought by the abortion rights group Personal PAC, U.S. District Judge Marvin Aspen ruled the organization could create its own independent-expenditure PAC and take unlimited contributions. Aspen found that previous rulings by the U.S. Supreme Courtand the 7th U.S. Circuit Court of Appeals in Chicago “prohibit governments from enforcing limiting contributions to independent-expenditure-only PACs.”

National: Super PACs and the Nonprofits That Fund Them | The Daily Beast

Super PACs are the perceived demons of the 2012 campaign, with the law allowing them to raise and spend unlimited amounts of dough. But a shadowy sideshow that’s gone largely unnoticed is the set of nonprofits affiliated with them, which often provide money to the cash cows—and they don’t have to publicly disclose their donors (as super PACs must). “The undisclosed money is far more troubling for the system,” says campaign finance lawyer Kenneth Gross. FreedomWorks for America is a case in point. The group, which has attacked GOP pols it finds insufficiently conservative, is located three blocks north of the Capitol. At the same address, sharing the same suite and even some staff, is the headquarters of the similarly named FreedomWorks Inc., a nonprofit (or 501[c][4] group). In 2011 the super PAC received almost half of its $2.7 million from the nonprofit, a legal transfer that skirts disclosure requirements. Whose cash is it? We aren’t allowed to know. Matt Kibbe, who oversees the activities of both groups, tells Newsweek that “to adhere to what the law stipulates” there is a “firewall” between the two. But even by the loose standards of money in politics these days, the arrangement seems rather cozy.

National: Super PAC challenge: Congress | Politico.com

The next frontier for super PACs: playing in Senate and House party leadership elections. The formula is simple. Raise $10 million from the jet set or grass-roots followers, spend it on 40 to 50 House districts or 15 Senate races and then call in favors when it’s time to count votes for speaker, floor leader or whip. The model has been built. The money’s out there. And there’s no shortage of ambition in Congress. The question is: Can anyone put it all together?

National: The Super PAC Paradox | Roll Call

When GOP presidential hopeful Rick Santorum gave his victory speech in Missouri after the primary there on Feb. 7, he shared the stage with a white-haired gentleman who stood practically at his elbow the entire time.
Investment fund manager Foster Friess probably did not strike audience members as someone special as he smiled merrily behind the former Pennsylvania Senator. But Friess is at the center of a growing controversy over unregulated money and alleged campaign finance violations in the 2012 campaign. At issue is whether unrestricted super PACs are illegally working hand-in-hand with the candidates they support. Campaign finance watchdogs say the collusion is flagrant. Super PAC organizers argue just as loudly that they are meticulously following the rules.

Editorials: The Numbers Don’t Lie – If you aren’t sure Citizens United gave rise to the super PACs, just follow the money | Slate Magazine

Most of what you hear about Citizens United v. FEC is negative. By opening the door for corporations to spend unlimited sums in elections and to allow for the creation of super PACs, the Supreme Court has made a campaign finance system that was already flooded with money much worse. But Citizens United obviously has its defenders, and they have advanced a number of arguments to try to blunt criticism of the Supreme Court’s controversial decision: The public actually learns from the flood of negative advertising coming from these super PACs; super PACS increase competition; The Supreme Court’sCitizens United decision didn’t create super PACs, so stop blaming the court for the flood of dollars and the negative campaign ads they buy.

This last argument has recently gained a lot of traction, and has been made by First Amendment lawyer Floyd Abrams, his son the legal commentator Dan Abrams (who accused the media of “shameful, inexcusable conduct” in describing the Citizens United-super PAC connection), columnist George Will, and the Atlantic’s Wendy Kaminer. The argument goes like this: The Supreme Court back in 1976 held that individuals had a constitutional right to spend unlimited sums on elections. And before Citizens United, rich individuals like George Soros gave large sums of money to so-called “527 organizations” (named after an obscure section of the tax code) with innocuous names like “Americans Coming Together.” These 527 organizations were just like super PACs, so there’s nothing new here.

National: Meet the un-super PACs | Politico.com

Despite the hype about super PACs this election, most aren’t very super at all: Nearly three in four report having less than $5,000 cash to their name or have yet to report assets, a review of their most recent disclosures indicates. And of the nearly 330 federal super PACs in existence today, about one-fourth have never raised or spent a dime, records show. More than two-dozen of these underwhelming organizations are the creations of one man — Josue Larose, an eccentric Floridian who’s confounded state and federal regulators while displaying no interest, or ability, to operate them for their intended purpose and frequently changes their names. Federal Election Commission officials wrote to Larose Wednesday informing him that they plan to administratively terminate 61 of the committees he’s created — both traditional political action committees and super PACs — because of inactivity.

Ohio: Mystery super PAC may have violated election law – USAToday.com

Four days before Ohio’s primary election, Democratic voters in the 2nd Congressional District received a blitz of automated telephone calls supporting William R. Smith, a candidate who didn’t campaign, raised no money and gave no media interviews before the election. On election night, Smith won by 59 votes against a well-known, better funded and harder working candidate who had the endorsement of major Democratic groups. So who gets credit for helping Smith secure the Democratic nomination to Congress? No one knows. The “Victory Ohio Super PAC” claimed credit for the “robocalls,” but it is not registered with the Federal Election Commission and hasn’t disclosed any contributions or spending to federal regulators.

National: Super Tuesday brings super PAC spending milestone | iWatch News

Heading into Super Tuesday, spending by super PACs aligned with presidential candidates has surpassed spending by all super PACs in the 2010 mid-term election. To date, super PACs aligned with one of the 2012 White House hopefuls have spent more than $66 million, an iWatch News analysis of data filed with the Federal Election Commission has found. Notably, the pro-Mitt Romney super PAC “Restore Our Future” accounts for almost 50 percent of this spending. The super PAC has spent more than $32 million so far this election, nearly all of it on ads bashing his opponents. That’s nearly twice as much as the $16 million spent by pro-Newt Gingrich “Winning Our Future.” And it’s roughly six times as much as the $5.3 million spent by the pro-Rick Santorum “Red, White and Blue Fund.”

National: I.R.S. Scrutiny of Political Groups Stirs Harassment Claim | NYTimes.com

The Internal Revenue Service is caught in an election-year struggle between Democratic lawmakers pressing for a crackdown on nonprofit political groups and conservative organizations accusing the tax agency of conducting a politically charged witch hunt. In recent weeks, the I.R.S. has sent dozens of detailed questionnaires to Tea Party organizations applying for nonprofit tax status, demanding to know their political leanings and activities. The agency plans this year to press existing nonprofits like American Crossroads, on the Republican side, and Priorities USA, on the Democratic side, to justify their tax-protected status as “social welfare” organizations, a status that many tax professionals believe is being badly abused. Senate Democrats are readying a fresh legislative push to demand that such groups disclose their donors and attach disclaimers to their political advertising identifying the advertisement’s primary funders. Tax experts are also raising concerns that corporate donors to “super PACs” may be deducting their contributions as business expenses.

National: FEC’s bad rap getting worse | Politico.com

The rise of billionaire-driven super PACs that seem to take a loose view of the few rules they’re asked to follow has even late-night comics asking: Who’s in charge here? Meet the Federal Election Commission, the agency tasked with enforcing campaign finance law. This six-person panel has long been slow-moving and frequently divided, but this year its members have taken their reputation to new heights just as money emerges as the biggest legal issue of the season. The FEC routinely stalemates along party lines on the biggest questions it faces, such as whether members of Congress can appear in ads aired by a super PAC affiliated with Karl Rove or whether to write new rules requiring political advertisers to disclose more information — effectively leaving campaigns and super PACs to decide for themselves. When they do manage to reach bipartisan agreement, it’s on relatively small-bore questions.

National: ‘Super PACs,’ Not Campaigns, Do Bulk of Ad Spending | NYTimes.com

The crucial role the “super PAC” now plays in modern presidential politics has been on vivid display in the week before the Super Tuesday primaries, as these outside groups have all outspent the campaigns and become their de facto advertising arms. The super PACs supporting Mitt Romney, Rick Santorum and Newt Gingrich have poured nearly $4 million into advertising in Ohio ahead of the primary next week, accounting for most of the spending on commercials there in what has become an overwhelmingly negative contest. Beyond Ohio the story is the same. The money spent by super PACs, another $8 million, continues to outpace what candidates themselves are willing and able to spend. Mr. Romney, whose campaign spent almost three times as much as it brought in during January, has chosen not to advertise in any Super Tuesday state but Ohio. He has committed about $1.2 million to advertising there, according to figures provided by media strategists.

National: Super PACs, candidates blur lines ahead of Nov. 6 | USAToday.com

Presidential candidates and the super PACs accepting unlimited donations to help their campaigns cannot coordinate their activity, yet they are sharing consultants, donors and even advertising footage, raising new questions about the independence of outside groups. Campaign-finance experts say there’s little federal regulators can or will do to curb the activity ahead of November’s election.

Some recent examples:
•Restore Our Future, a super PAC backing Republican Mitt Romney, came under fire from a campaign-watchdog group this week for running the same commercial Romney aired in 2007 during his earlier presidential campaign. The super PAC, run by former Romney aides, also shares a direct-mail and polling consultant with the campaign, new federal disclosures show.

Voting Blogs: Super PAC Disclosure Statements Disclose Little | Brennan Center for Justice

One might guess that groups with names like Restore Our Future, Priorities USA, and Winning Our Future would all be campaigning for the same thing — but that could not be further from the truth. These similarly named groups are the Super PACs who are fighting each other in the presidential election. Their confusing names are paltry in comparison to the biggest concern: many of their real donors remain hidden from the public eye. With unlimited contributions made possible by the Supreme Court’s 2010 decision in Citizens United v. Federal Election Commission and subsequent court decisions, the groups have already raised millions of dollars from wealthy individuals, corporations, unions, and nonprofits. While President Obama is not immune from the Super PAC trend, the Republican nominees have raised more money in much larger amounts. Twelve billionaires donated to Restore Our Future, the Super PAC supporting Mitt Romney, with contributions ranging from $50,000 to $1 million.

National: Super PACs: Real life, or Comedy Central? | Kenneth P. Vogel/Politico.com

When it comes to super PACs, it’s getting hard to tell the difference between reality and a Comedy Central bit. Stephen Colbert made an ongoing gag last month out of lampooning the rules barring coordination between outside groups and campaigns. When he announced a plan to run for president, he made a big show of handing off his super PAC to his fellow Comedy Central host Jon Stewart. Stewart promised not to coordinate with Colbert — giving the camera a wink and a nod. But it was no joke last week when President Barack Obama and Mitt Romney cleared their top aides to raise cash for the super PACs supporting their campaign.

Editorials: Foreign donations a risk in US presidential race | msnbc.com

Money pouring into the U.S. presidential election from new super political action committees and nonprofit campaign groups appears so far to be strictly American in origin, donated by U.S. companies, unions and millionaires. But it’s easier than ever to conceal the source of money and the identities of contributors, making conditions ripe for illegal donations from foreigners, overseas companies or governments attempting to help a favored candidate for the White House.

National: Stephen Colbert’s not-so-super super PAC | latimes.com

Reporting from Washington –— Determined not to be “the only chump” without a committee to collect “unlimited corporate money,” satirist Stephen Colbert went to the Federal Election Commission last summer to petition for permission to form his own “super PAC.” He won, and instantly started swiping credit cards as he delivered a knock-knock joke to the throng of fans who’d gathered to greet him.
“Knock knock?” Colbert said.
“Who’s there?” the crowd replied.
“Unlimited union and corporate campaign contributions.”
“Unlimited union and corporate campaign contributions who?”
“That’s the thing,” he said. “I don’t think I should have to tell you.”

Like all super PAC operators, Colbert, the host of Comedy Central’s late-night faux news show “The Colbert Report,” filed forms this week that disclosed the source of the nearly $1 million his super PAC raised last year. It turns out the vast majority of it would have been legal without the much-maligned Supreme Court ruling that prompted the creation of super PACs and has been the butt of Colbert’s jokes.

National: Citizens United Lawyer: I Hate Super PACs Too | TPM

The Republican lawyer on the case that arguably helped pave the way for the creation of so-called “super PACs” told TPM this week that he hopes politicians will realize that the contribution limits on their campaigns are putting them at a huge disadvantage, and will pass legislation dashing such restrictions. An odd position for a key player in the opening of the anonymous-campaign-cash floodgates to have? James Bopp Jr. says no. “I’m very hopeful and actually expect that incumbent politicians are going to look at themselves and say we are severely handicapped” in comparison to super PACs, Bopp told TPM, arguing that political campaigns were more accountable to voters than super PACs. “It is of course possible that there would be a court decision that would effect that. But I think the more likely scenario is that members of Congress will realize they have cut their own throat,” Bopp said.

National: Campaign Finance Reports Show ‘Super PAC’ Donors | NYTimes.com

Close to 60 corporations and wealthy individuals gave checks of $100,000 or more to a “super PAC” supporting Mitt Romney in the months leading up to the Iowa caucuses, according to documents released on Tuesday, underwriting a $17 million blitz of advertising that has swamped his Republican rivals in the early primary states. President Obama reported raising some $39.9 million in the fourth quarter, not including money he raised for the Democratic National Committee or transfers to a joint fund-raising account with the party. The filings to the Federal Election Commission, the first detailed look at a crucial source of support for Mr. Romney, showed his ability to win substantial backing from a small number of his party’s most influential and wealthy patrons, each contributing to the super PAC far more than the $2,500 check each could legally write to his campaign. All told, the group, Restore Our Future, raised about $18 million from just 200 donors in the second half of 2011.

National: Senate Dems plan super PAC hearings | MSNBC

Senate Democrats decried the influx of millions in unregulated dollars in the 2012 elections, announcing Wednesday that they will hold hearings looking into the impact of super PACs. New York Sen. Charles Schumer, Democrats’ messaging chief in the Senate, announced that the Rules committee will begin hearings this month on super PACs. Joined by Sens. Sheldon Whitehouse (D-RI) and Al Franken (D-MN), Schumer pointed to Mitt Romney’s victory in Florida’s Republican primary as evidence of the outsize influence of super PACs. He then bashed Karl Rove-tied groups American Crossroads and Crossroads GPS for raising money by the millions without having to disclose all of its donors.

Editorials: Congress can fix the Super PAC problem | Salon.com

Election junkies circled January 31st on their calendars months ago — but not because of Florida’s primary today, no matter how important it is to Mitt Romney and Newt Gingrich. Tuesday’s real significance deals with Super PACs — it’s the day “independent” groups, dominating the 2012 election, must file their financial disclosures for the last six months. Candidate-specific Super PACS — which can take unlimited sums from individuals and corporations, and likewise spend without limits — are like nothing seen in any previous election.  They’ve eviscerated the post-Watergate contribution limits that Congress enacted to curb corruption, and they’ve hit the presidential campaign with the force of a freight train.