Mr. President, I am here today to introduce the DISCLOSE Act of 2012, and we are informally closing DISCLOSE 2.0 in recognition of the original bill that Senator Schumer worked so hard to get passed…
Mr. President, I am here today to introduce the DISCLOSE Act of 2012, and we are informally closing DISCLOSE 2.0 in recognition of the original bill that Senator Schumer worked so hard to get passed a few years ago.
The Supreme Court's 2010 decision in Citizens United v. Federal Election Commission opened the floodgates to unlimited corporate and special interest money in elections, bringing about an era where corporations and other wealthy interests can drown out the voices of voters in our political system.
Worse still, much of this spending is anonymous so the public does not even know who is spending millions to influence our elections. Here is how my home State newspaper, the Providence Journal, explained the Citizens United decision:
The ruling will mean that, more than ever, big-spending
economic interests will determine who gets elected. More
money will especially pour into relentless attack campaigns.
Free speech for most individuals will suffer because their
voices will count for even less than they do now. They will
simply be drowned out by the big money.
I think events have proven the Providence Journal correct. Senator John McCain recently described these events. He said:
I predicted when the United States Supreme Court, with
their absolute ignorance of what happens in politics, struck
down [the McCain-Feingold campaign finance law], that there
would be a flood of money into campaigns, not transparency,
unaccounted for, and this is exactly what is happening.
If we look at the 2006 and 2010 congressional elections where there was not a Presidential race going on after Citizens United in 2010, there was a fourfold increase in expenditures from super PACs and other outside groups compared to what occurred in 2006, with nearly three- quarters of that political advertising coming from sources that were prohibited from spending money in 2006--three-quarters of it.
Also, in 2010, those 501(c)(4) and (c)(6) organizations spent more than $135 million in unlimited and secret contributions. Anonymous spending rose
from 1 percent of outside spending in 2006 to 47 percent of outside spending in 2010. Nearly half of the money spent through these outside organizations is anonymous and secret.
If we look at the 2012 race that we are in right now, a Presidential race, and compare it to the last Presidential race, we are already seeing similar ominous signs about the influence of money. The Federal Election Commission predicts that over $11 billion will be spent on the 2012 elections, about double what was spent in 2008.
Super PACs, mostly linked to individual candidates, spent about $100 million through the Super Tuesday contest in the Republican Presidential primary, again, about twice what was spent over the same period in 2008. In the two weeks leading up to Super Tuesday, outside PACs that supported the Republican Presidential candidates spent three times as much as the candidates themselves.
Our campaign finance system is broken. Immediate action is required to fix it. Americans of all political stripes, whatever their persuasion, are disgusted by the influence of unlimited anonymous corporate cash in our elections and by campaigns that succeed or fail depending on how many billionaires the candidates have in their pockets.
Editorial boards across the country decry this new pollution of our politics. Republicans, such as former Governors Mike Huckabee and Tom Ridge, have concluded that super PACs are, in Mr. Huckabee's words, ``one of the worst things that ever happened in American politics.''
Seven in ten Americans, including a majority of both Republicans and Democrats, believe super PACS should be illegal. Countless Rhode Islanders are fed up with the influence of corporate money in elections. I hear them at my community dinners; I read their mail. Charles in Little Compton wrote to me,
[I]t is wrong that someone who shouts louder or further, in
this instance solely because they have more money, should
drown out another person . . . [C]orporations have no problem
getting their views aired.
Hope-Whitney in Bristol wrote,
[J]ust the idea that a corporation is considered an
individual in regards to politics goes against everything
American to me. . . . [T]hey have become the Emperors as they
have the financial ability to be heard everywhere. . . . I'd
be willing to bet that a majority of their own employees do
not agree with their political representation.
Elizabeth in Wakefield wrote:
Big business should not control our elections. It is bad
enough that they deeply influence our politicians through
lobbyists.
But because of a 5-to-4 decision by the conservative Justices in Citizens United, Congress cannot prohibit super PACs from drowning out the voices of ordinary Americans in our elections. That leaves us with one weapon left in the fight against the overwhelming tidal wave of money from special interests. That weapon is disclosure, daylight, information.
Today, along with 34 other Senators, I am introducing legislation that will shine a bright light on these powerful shadowy interests. With this legislation, every citizen will know who is spending these great sums of money to get their candidate elected. I am delivering this speech at a time that Senator Bennet, the distinguished junior Senator from Colorado is presiding. I am very conscious and aware as I deliver it of the immense amount of work that he has put in in the process of preparing this legislation, working on a strategy for going forward, working with our leadership to commence that strategy.
I am grateful to him and the other Senators I will mention later. For now I will give the Presiding Officer the lead. In 2010, under Senator Schumer's leadership and guidance, we came within one vote of passing his original DISCLOSE Act. Since then, the problem of anonymous and unaccountable corporate money has become dramatically worse, and Americans are losing faith in our political system as a result.
More and more people believe their government responds only to wealthy and powerful corporate interests. As they see their jobs disappear and their wages stagnate, and bailouts and special deals for the big guys, they lose faith that their elected officials are listening to them. For our democracy to remain strong, this trend cannot continue. We must redouble our efforts and pass the DISCLOSE Act of 2012.
The bill we are introducing today has been trimmed down so it just does two simple things: One, if you are an organization such as a corporation, a super PAC or a 401(c)(4) group spending money in an election campaign in support of or in opposition to a candidate, you have to tell the public where that money came from and what you are spending it on in a timely manner. That should not be a controversial idea to anyone, at least to anyone who is not seeking special influence.
If you are a top executive or a major donor of an organization spending millions of dollars on campaign ads, you have to take responsibility for those ads by having your name on the ad, and in the case of an executive appearing in the ad yourself. That is it. Two simple provisions. Disclosure and a disclaimer. These are reasonable provisions that should have wide support from Democrats and Republicans alike.
The DISCLOSE Act of 2012, the DISCLOSE 2.0 Act, trims down the original DISCLOSE Act in another way. We have raised the threshold for donations that require disclosure from $600 to $10,000. It may sound as though $10,000 is a ridiculously high threshold, as though that is an awful lot of money, but when we look at what is happening in these super PACs, $10,000 in this particular world is no big deal.
Ninety-three percent of money raised by super PACs in 2010 and 2011 that can be traced to specific donors came in contributions of $10,000 or more. So we will catch probably 93 percent of the money in this reporting provision, while leaving smaller donations and dues payments to membership organizations private.
The act also does not require the disclosure of nonpolitical donations, affiliate transfers, business investments, and other transfers of money that have nothing to do with electioneering.
At the same time, however, the bill also contains strong provisions to prevent the use of dummy organizations or shell corporations to hide their donations from public view. The way this bill is drafted, if somebody sets up a phony organization to take a contribution and, in turn, make that contribution to another phony organization and, in turn, make that contribution to another phony organization, before it finally lands in a super PAC that is benefiting a candidate, we will be able to trace that series of transactions.
So it is a good law, a simpler law, an effective law. It only goes after high-dollar givers. Passing it would prove to the American people that Congress is committed to fairness, that we are committed to equality, and that we are committed to the fundamental principle of a government ``of the people, by the people, and for the people.''
In closing, I thank Senator Schumer for his exemplary leadership and determination on this vitally important issue, as well as Senators Michael Bennet, Al Franken, Jeff Merkley, Jeanne Shaheen, and Tom Udall, all of whom have worked very closely on this legislation. I also thank the act's other cosponsors--all 35--who, similar to myself, understand that the legitimacy of our democratic process and the integrity of our democratic elections are at stake.
I look forward to working with any of my colleagues in the Senate who believe the voices of American citizens should be defended, and I hope all will join me in supporting this critical piece of legislation to restore integrity to our elections.