Welcome!1) Grab the calendar at the front

2) Begin reading the Citizens United ruling as a warm-up

3) Make-ups for Super Quiz tomorrow and Thursday

Should Corporations be restricted on what they may donate to a campaign?

Group Discussions:Citizens United v. FEC (2010)

Four Corners

Definitely Yes

Unsure But Leaning Yes

Definitely No Unsure But Leaning No

CAMPAIGN FINANCE*

*Number 3 on hardest

thing to learn in AP Gov

How things work• All federal election contributions and

expenditures are reported to the F.E.C.• All contributions over $100 must be disclosed• No cash contributions over $100 or foreign

contributions– Why?

• No limit on how much a candidate may spend of their own money

Conservative Argument

Liberal Argument

Does money buy votes?

No, but it does by access.

Hard money• "Hard" money is contributed directly to a

candidate of a political party. It is regulated by law

Soft Money

• "Soft" money is contributed to the political party as a whole.

Independent expenditure• No restrictions on a candidate’s own money• Restrictions are a violation of free speech

Buckley v. Valeo (1976)

McCain Feingold:Confusing and Controversial

Why McCain-Feingold is like

PROVISIONS• Banned soft money to

candidates• “Stand by your ads”• 527 loophole

– Unregulated and unreported

How much can you give to a

campaign?

A Donor TaxonomyCandidate Committee Friends of John

McCainDescription Committee formed by the candidate,

who can direct the use of funds

How much can you give? Individuals: $2,400Corporations: Cannot contribute*

Limits on how the group can use the money

A candidate committee can’t contribute more than an individual can to other committees (e.g. $2,400 to a candidate)

Are donors disclosed? Yes, to the Federal Election Commission

*Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

Candidate’s Committee Ad

POLITICAL ACTION COMMITTEES• committee formed by a

special-interest group to raise money for their favorite political candidates

A Donor TaxonomyPAC (Political Action

Committee)International Assn. of Firefighters

Description PACs are formed by the parties to funnel money to candidates or use it for other purposes

How much can you give? Individuals: $30,400 per year to a national party committeeCorporations: Cannot contribute*

Limits on how the group can use the money

A Political party PAC can give no more than $5,000 per year to a candidate (Senate candidates can get $42,600 per campaign), or$5,000 per year to another PAC

Are donors disclosed? Yes, to the Federal Election Commission

*Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

PAC Ad

“527s”1. tax-exempt organization named after a section of

the United States tax code, 26 U.S.C. § 5271. Unregulated by the Federal Election Commission2. Such organizations can legally engage in political activity,

but funds from "soft money" contributions may not be spent on ads promoting the election or defeat of a specific candidate.

527 Ad

A Donor Taxonomy527 Patriot Majority, Swift Boat

Veterans for Truth

Description A tax-exempt group that raises money for political activities including voter mobilization and issue advocacy. These groups haven’t typically advocated for or against a candidate by name

How much can you give? Unlimited

Limits on how the group can use the money

These groups cannot give to a candidate or PAC, and may not coordinate with parties or candidates

Are donors disclosed? No

A Donor TaxonomyCandidate Committee

Description

Limits on Contributions

Limits on how the group can use the money

Are donors disclosed?

*Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

A Donor TaxonomyPAC (Political Action

Committee)

Description

Limits on Contributions

Limits on how the group can use the money

Are donors disclosed?

*Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

A Donor TaxonomyFederal PAC

Description

Limits on Contributions

Limits on how the group can use the money

Are donors disclosed?

*Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

A Donor Taxonomy527

Description

Limits on Contributions

Limits on how the group can use the money

Are donors disclosed?

Campaign Finance Explained:•Warm-up: What is going on in the cartoon?

527s:

How things work:1.2.3.4.

Political Action Committees (PACs):

Soft money: McCain-Feingold:

Hard money: XXXXXXX