I thank the gentleman and I commend him on really a tremendous job in heading up the Official Truth Squad of House Republicans, because it is about transparency. You have done a great job at laying out the record here in the House of who…
I thank the gentleman and I commend him on really a tremendous job in heading up the Official Truth Squad of House Republicans, because it is about transparency. You have done a great job at laying out the record here in the House of who votes for what and sort of comparing that to the rhetoric that often swirls around this place, certainly in the press and in other corners. I would also like to commend the gentleman from North Carolina for his leadership on this and many other issues. But I would like to, as the gentleman from Georgia indicated, talk just a minute about the issue of transparency in elections. See, I come from the Commonwealth of Virginia. In Virginia, we have an election law that allows for open and often disclosure. We have a campaign finance regime that allows for pretty much anyone to step up and exercise his or her first amendment right without any restriction so far as there is full and quick disclosure. That is really what we are all about, I think, here in this country, is we are about ventilating what goes on in this body, what goes on in elections. And so when this body passed the McCain-Feingold legislation, when it passed what we otherwise now call BCRA, somehow the Federal Election Commission in its promulgation of regulations created a loophole that was unintended, because again I think the primary goal of any campaign finance reform should be transparency. We should trust the voters and trust the citizens of this country to be able to make decisions for themselves as long as they have full disclosure of the information. Well, McCain-Feingold produced this loophole and the loophole was the 527 entities that were created, or really that flourished, after the passage of the McCain-Feingold legislation. As both gentlemen have pointed out, this loophole allows the super-rich to impact elections and it allows them to impact elections with very little to no accountability to the voters.
As was said earlier, when any Federal candidate runs for office, they are required to disclose their contributions, their expenditures to the FEC, all of it done now electronically and online for their constituents and for the entire country to see. That is the difference here with 527s. They simply are not disclosing who their donors are in a timely fashion and are not disclosing what type of expenditures they are making. In fact, the Center For Public Integrity reported that section 527 political organizations raised approximately $535 million during the last Federal election cycle in 2004. That was up from the prior cycle of $268 million that was raised then. Reports that were released by public interest groups and various media sources during 2004 indicated that these 527 groups were not reporting all their contributions and expenditures to the IRS. In fact, the IRS did a study. In that study, it was estimated that 527 political organizations received nearly $27 million in contributions prior to filing the necessary disclosure forms, and consequently may be subject to over $17 million in unpaid taxes and penalties. So it almost seems as if 527s may be averting the law to get away with hidden contributions, hidden activities, shady activities.
We all know and we have read the reports about the type of activities that these organizations have engaged in. For instance, one of these 527s hired dozens of felons as voter canvassers in Missouri, Ohio and Florida, including people convicted of crimes such as burglary, forgery, drug dealing, assault and sex offenses. Again, if there were not this loophole that instead would require 527s to abide by the same kind of disclosure laws that any Federal office or any Federal campaign committee was required to comply with, we would have known about that. In fact, these organizations, my contention would be, would not have hired felons and would have been much more careful in their activities.
But the list goes on about the type of activities that these entities are engaged in across the country. That is what we are here today to talk about and that the Truth Squad has come to deliberate upon because frankly the American people expect better. The American people do expect that those who engage in political activity do so in the sunshine, do so with the ability for voters to access information and for the political process frankly not be commandeered by these groups that operate in the dark.
I appreciate the manner in which the gentlemen from Georgia and North Carolina approach this subject and look forward to continuing to debate and discuss these important issues that face Americans frankly this election cycle.
The gentleman is exactly right. I think the three of us and probably most of our colleagues would adhere to a philosophy that allows for free and open participation in the political process, but again, with the stipulation that that participation brings an obligation for full disclosure; and that is in fact what we are about here in 527 reform.
I anticipate and look forward to the debate on this House floor next week on the issue of 527 reform. We have got to allow the average American the same ability to get involved in the political process that, frankly, the super-rich have. As we see in the gentleman from Georgia's charts, over $78 million, nearly $79 million was contributed and put into the political process by four super-wealthy donors. Now, I know that most, if not all, of our constituents do not have the ability to participate in that manner, to participate in these 527s.
The gentleman from Georgia mentioned what is a 527. And Congressman McHenry, you indicated, well, they are the ones that are paying for these calls that may be interrupting your dinner at home, that may be coming and knocking on your door inquiring about your allegiance, inquiring about your political affiliation. 527 groups are groups that have involved themselves in the political process. They have become omnipresent in many places in
this country because they can get involved in a political campaign really under the radar screen, unbeknownst to a candidate, unbeknownst to perhaps both candidates in a race. They do so because they are not properly disclosing who their donors are.
Frankly, we do not have the proper enforcement mechanisms in place. Mechanisms that should be in place belong at the FEC just like they are for any other election campaign.
I thank the gentleman. I thank the gentlewoman from Tennessee who has joined us, and I appreciate her dedication to this issue and so many others that reflect her desire to achieve transparency in so much of what we do here in this body and on behalf of the constituents that we represent.
The gentleman is right, next week will be the opportunity for all of us to set partisanship aside, to speak up for the American people, and to essentially allow all Americans the access to the political process that right now only the super-wealthy have through their use of 527s.
So we will look forward to hopefully having a bipartisan vote next week in closing the loophole, in upholding the principles of McCain- Feingold, which were to get soft money out of politics.
We have often heard that that is what McCain-Feingold was about. This is what we were trying to do was to get rid of this so-called ``dirty soft money.''
Well, it would seem to me that anyone who voted for McCain-Feingold several years ago, in order to be consistent, should vote for the measure that will be on the floor next week because, otherwise, I would think an individual would open themselves up to allegations of hypocrisy, because, in fact, it was the aftermath of McCain-Feingold, the regulation process at the FEC, that produced the flourishing of the 527s; and as the gentleman, gentlewoman and also the congressman from North Carolina has shown, this is nothing but a ruse on the American people.
There is an awfully powerful voice out there in many, many areas of the country involved in electioneering, a voice that no one knows who really is speaking, and that really is not what this country was about. That is not what the voters expect of us.