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With restrictions gone, ‘1 percenters’ dish millions, alter race for White House

This news story was published on February 2, 2012.
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By Greg Gordon, McClatchy Newspapers –

WASHINGTON — Forget about the poor, the unemployed and the sinking middle class participating in the democratic process.

The race for the presidency is increasingly being bankrolled by “1 percenters” — those among the richest of Americans.

Year-end campaign finance reports show that many of the nation’s wealthiest individuals and their companies have written huge checks to Republican and Democratic “super committees” that are exempt from the usual $5,000 campaign donation limits.

Texas businessman Harold Simmons and his Contran Corp. have donated $7.5 million to two GOP committees. Las Vegas hotel casino owner Sheldon Adelson and his family have poured more than $10 million into a so-called super political action committee backing Newt Gingrich. Filmmaker Steven Spielberg gave $100,000 to one of several committees aiding President Barack Obama.

Partly as a result of the Supreme Court’s 2010 ruling that even corporations enjoy the right to free political speech, a 2002 congressional overhaul that was supposed to rid big money from national politics is fast becoming a distant memory. Not only are wealthy Americans serving as financial angels to presidential candidates, but companies also have begun to write multimillion-dollar checks, and some may be doing so secretly.

American Crossroads, a conservative super-PAC founded by former Bush White House political guru Karl Rove, has raised $51 million to date, including $33 million garnered by a nonprofit arm that isn’t required to disclose its donors. The groups have set a goal of collecting another $200 million to raise Republican prospects in next year’s presidential and congressional elections.

Anthony Corrado, a campaign finance expert at Colby College in Maine, says high-dollar donors have gotten active earlier than ever this year and are playing a bigger role — and that may not be an accident.

“If you think about the way the president is beginning to frame the campaign, presenting this as a campaign of the 99 percent against the 1 percent, that in some ways is adding fuel to the fire to keep these donors involved,” he said.

Corrado also noted that outside groups have had a disproportionate impact this year because so many candidates, including Gingrich, have lacked “presidential-level money.”

Gingrich’s campaign raised $9.8 million and closed the year with $2.1 million in cash and $1.2 million in debt. Rep. Ron Paul of Texas raised $13.3 million in the fourth quarter and ended the year with $1.9 million in cash, while former Pennsylvania Sen. Rick Santorum’s campaign raised $920,000 in the quarter and closed with $279,000 in cash.

“This has actually been a race where a large gift from an individual donor can fund an advertising campaign greater than a candidate’s own campaign can muster,” Corrado said of the super-PACs’ clout.

Restore Our Future, the super-PAC raising unlimited donations to support Republican front-runner Mitt Romney, brought in nearly $18 million last year — none from donors of under $200.

Donors to the pro-Romney group included a cross-section of conservative businessmen, top executives of the private equity firm Bain Capital that Romney founded and used to make his fortune, and other investment houses, including Goldman Sachs.

Four companies founded by Frank VanderSloot, Romney’s national finance co-chairman who has held fundraisers at his Idaho Falls ranch during both of Romney’s presidential runs, each gave $250,000 to the PAC. Melaleuca Inc. and its affiliates sell vitamins and household products nationwide.

Others who underwrote the shadow campaign committee included Dallas businessman Harlan Crow and his Crow Holdings, who donated $150,000; billionaire Bill Koch of West Palm Beach, Fla., who along with his Oxbow Carbon Corp. dropped $1 million; major Republican fundraiser Paul Singer, a principal in Elliott Management Corp., who also donated $1 million, and Sam Zell, former owner of the bankrupt Tribune Co., who gave $50,000.

In the first four GOP contests, the super-PACs have spent much of their money serving as attack dogs, independently blitzing the airwaves with negative ads that seem in perfect sync with the candidates’ campaigns. In addition, wealthy backers are acting as “bundlers,” using their connections to raise tens of millions of dollars for Obama and Romney.

Tuesday night’s unveiling of the identities of donors to super-PACs came hours after polls closed in the key Florida primary, meaning that voters had no idea who bankrolled more than $10 million in broadcast ads by Restore Our Future.

“This level of disclosure isn’t just inadequate. It’s laughable,” Democratic Sen. Charles Schumer of New York told reporters. “The voters deserve to know the ugly truth of who is behind these super-PACs.”

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3 Responses to With restrictions gone, ‘1 percenters’ dish millions, alter race for White House

  1. Avatar

    OneEyed Reply Report comment

    February 2, 2012 at 6:25 pm

    Nice to know, as they tell us that Your Vote Counts as long as you vote for “Our guy”. Some of these big companies will even give money to both parties just to ensure that either the big ticket Democratic or Republican wins. And as long as they are able to give millions away to these two candidates, nothing will ever change for the better. They will just get richer and more powerful. Nothing is impossible as long as you can fund it. The fact that corporations are allowed to even give money shows us that ‘We the People’ no longer have any control of this country. It IS all about big time corporations and their money.

  2. Avatar

    Larry Reply Report comment

    February 2, 2012 at 9:12 am

    Why would anyone think anything different. The rich have the resources and the prize is more power and more money for them. We have no way to stop them other than showing up and voting but people are so selfish they will always vote for what makes them more comfortable. No one wants to take a chance on going against the establishment. Blame the courts. They are the ones who said these power paks could do this. I wonder what their payment was.

  3. Avatar

    Patriot Reply Report comment

    February 2, 2012 at 6:13 am

    So big companies and the rich are buying in the President of the United States. Great, I think it’s time to overhaul this system so that we get someone who actually earned that position.

    The average working man has no representation in government any longer. Time to change that. Remember, it’s supposed to be “By the people, for the people” not “by the rich to make the rich richer”!