501(c)(3) Politics

August 15, 2013
posted by Bob Bauer
A report produced by the Commission on Accountability and Policy for Religious Organizations calls for the reform of the IRS ban on campaign intervention by 501(c)(3) groups. Government Regulation of Political Speech by Religious and Other 501(c)(3) Organizations (2013). It makes the point that the test by which the IRS judges political intervention is loosely constructed and unpredictable in application. The report also notes the additional problem that IRS enforcement is erratic; this is not the agency’s favorite assignment and the agency by and large either does what it can to avoid it, or gives up quickly in the face of dedicated resistance. The report’s authors, presenting their recommendations to Senator Chuck Grassley, propose a remedy in two major parts: one to address the treatment of “no cost” sermons and other religious statements made in the ordinary course of a religious organization’s operations, and the other to cover any other institutional expenditures for political purposes. The first of the recommendations makes sense, but the second does not.
Professor Erwin Chemerinsky has succinctly delineated the options available to the Court in McCutcheon v. Federal Election Commission. Erwin Chemerinsky, Symposium: The distinction between contribution limits and expenditure limits, SCOTUSblog (Aug. 12, 2013, 2:42 PM), http://www.scotusblog.com/2013/08/symposium-the-distinction-between-contribution-limits-and-expenditure-limits/. He then notes with regret one voice missing from the current Court’s jurisprudential chorus: the voice for reversing Buckley v. Valeo’s special protections for “expenditures,” once supplied by John Paul Stevens. Justice Stevens famously called in Nixon v. Shrink Missouri PAC, 528 U.S. 377 (2000) for acceptance of the "simple point” that “money is property; it is not speech.” Id. at 398.

The Super PACs in the Campaign Finance Reform Debate

July 24, 2013
posted by Bob Bauer
What to do about super PACs? Joel Gora, no admirer of campaign finance restrictions, argues that we should defend them. Joel Gora, Free Speech, Fair Elections, and Campaign Finance Laws: Can They Co-Exist? Brooklyn Law School, Legal Studies Paper No. 346 (2013). If they have come to typify the problems with money in politics, Gora contends, it is because we fail to appreciate their contribution to free speech, or their origins in long-standing independent expenditure jurisprudence. He adds: they didn't have the impact on the outcome that their critics widely feared. In other words, super PACs are good things, not bad things.

Progressive Reform and Progressive Politics

July 16, 2013
posted by Bob Bauer

Rick Hasen has thoughtful advice for progressives on campaign finance reform, and it can be summed up as an exhortation to live to fight another day. He counsels against misguided gestures (constitutional amendments), empty gestures (“lip service” to reform without action) and giving up altogether and moving on to other issues. Richard L. Hasen, Three Wrong Progressive Approaches (and One Right One) to Campaign Finance Reform, UC Irvine School of Law Legal Studies Research Paper Series No. 2013-117 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2293979 (Forthcoming in Harvard Law & Policy Review)

There is much Hasen has offered for reflection and discussion, but there are two issues—one of diagnosis and the other of prescription—that his analysis quickly raises.

Don McGahn has made his mark on the Federal Election Commission, and the recent Boston Globe account tells the story in familiar terms: he was dedicated to the evisceration of the campaign finance laws, he could count on the support of his Republican colleagues, and he did not go about this business with a soft touch. Commissioners now decline to reach across the aisle except to swat at one other, leaving two senior members to argue over the question of which of the them refused to answer the other's phone calls. The agency’s operations are defined by dysfunction, its atmosphere by disharmony. As the Globe dates these developments, the year 2008, when McGahn came to the FEC, is the turning point.

To accept that this is an unattractive portrait of the FEC—that this is not a model of constructive regulatory exertion even on difficult issues—is not to say that the picture is complete. The FEC has found the going rough for years, as the Globe noted: "stalled from the start," in the words of an early Common Cause critique. If what was once a stall has developed into flaming breakdown, the explanation must rest on more than the obduracy since 2008 of Don McGahn and his colleagues. The Globe makes a light pass on other factors but they remain in the background, diminished and incomplete.