We should say "for-profit corporations" instead of "corporations" when we discuss this issue. For example, the Libertarian Party National Committee is a corporation, and no one thinks the Libertarian National Committee doesn't have speech rights. Most corporations are not large profit-making organizations. The implication is always that we are talking about big business, but "corporation" is not a synonym for "big business."
--- On Tue, 10/19/10, Trevor Potter <TP@capdale.com> wrote:
From: Trevor Potter <TP@capdale.com> Subject: Re: [EL] Public attitudes to SCOTUS To: JBoppjr@aol.com, BSmith@law.capital.edu, election-law@mailman.lls.edu Date: Tuesday, October 19, 2010, 9:28 AM
Not to
beat a dead horse, but I think the argument that the founder's "wisdom and
foresight" was that corporations were persons for purposes of the Bill of
Rights has been pretty well exploded in previous postings on this listserve. I'm
afraid the only way to get there is to use that "liberal" tool--"interpretation
of a living Constitution" and recognize that judicial views of the
constitutional rights of corporations have evolved over time, and even now are
far from complete.
I am
struck as I think about these issues how the reasonably small
doctrinal differences in Citizens United have such enormous practical
consequences. I realize that the gap between minority and majority views is
perceived to be enormous, but it really wasn't. If the issue is viewed on a
scale of one to ten, the debate in Citizens United can be said to have
taken place between "eight" and "nine" on that scale. A one" would be the
view that corporations are artificial creatures of the state with
no rights except those
specified in their charter, and a "ten" the concept that corporations
are indistinguishable from individuals for all first amendment speech purposes. In
fact, prior to Citizens United corporations had robust, Court protected, opportunities to participate
in the federal political process, and in the political process in the roughly
half of the states that prohibited direct corporate political expenditures.
Under
the "draconian" McCain Feingold law upheld by McConnell, corporations could engage in
full political speech to their
shareholders and executives (the "restricted class") , could use corporate funds
to establish, administer, solicit for and encourage a PAC comprised of money from
individuals (which itself could make both unlimited independent
expenditures and contributions to candidates larger than individuals), and
could use corporate treasury money to run advertising for or against ballot
measures and to pay for unlimited issue ads talking about issues of
concern to the corporation (provided they were not run in the midst of the
election period if they referred to federal candidates up for election in
that state). Non-profit corporations (usually the poster child in the corporate
rights argument) were allowed under the Court's previous MCFL decision to make
unlimited political expenditures provided they did not do so as a conduit for
for-profit corporate money.
Under
this pre-Citizens United view, corporations thus had limited but important
expressive rights, despite being correctly identified in Austin as
possessing extra powers in the political marketplace by virtue of being
artificial person with unlimited life, aggregating wealth in a manner different
from natural persons, and with a legally narrow purpose only of benefiting
shareholder economic well-being. The Court moved from this "eight" position to a
"nine" on the scale of corporate right at least partially based on the currently
bankrupt assumption that the sources of funding of corporate speech would
be fully disclosed so that shareholders could exercise their rights of
governance and, more importantly, voters would know who was speaking (I say
only a "nine" on the 1-10 scale because the majority suggests
their view of the First Amendment rights of citizens to hear all
views is not absolutist--it may well
not extend to the views of non-US corporations, foreign nationals,
or other foreign entities, and perhaps to certain US entities if a specific tie to the dangers of quid pro quo corruption can be shown in the
future).
My
point is that the Court majority in Citizens United chose to ignore the
carefully considered policy choices made by Congress in McCain Feingold (and in
the post-Watergate FECA and the Taft Hartley law and earlier laws) in order to
move constitutional doctrine only incrementally further in an
absolutist first amendment direction. In doing so, the Court (with not a single
judge with practical experience in elective office, since the departure of
Justice O'Conner) has unleashed a
significant and as yet ill-defined change on our democracy--a
change it is clear from their statements on disclosure that they did
not fully understand.
It is
quite true, and quite right, that we
do not put the Bill of Rights up to a plebiscite of voters, or the much smaller
universe of persons who respond to opinion polls. However, what the polls
reflect is what we know to be true--a five-four Supreme Court decision has
wrought an enormous change in the way our elections are conducted, contrary
to the will of Congress and the Executive expressed in legislation after a
long-drawn out legislative conversation that was itself based on a hundred years
of previous enactments and discussion of these issues. In doing so, the Court
upset settled law reaffirmed only a few years previously by the same Court, in
what appears to be a quest for doctrinal change regardless of consequences (or
perhaps unaware of consequences, as in the case of the Court's statements on the
ready availability of disclosure).
The
false dichotomy presented by the advocates of Citizens United is that the Court
ignored the First Amendment prior to Citizens United, at which point the scales
fell from the eyes of enough Justices to (finally) embrace its dictates. This is
a unrecognizable caricature of
the Court's position. Beginning with Buckley, and continuing
through Bellotti (1978), NRTW (1982) ,MCFL ( 1986) , Austin
(1990), Beaumont (2003) , and McConnell (2005) , the Court implemented the
First Amendment's requirements in the corporate context, while respecting the
choices made by the legislative and executive branches in election
administration and the deterrence of corruption. What happened in Citizens
United was not that the Court suddenly discovered the First Amendment, but
rather that a change of a single Justice enabled the minority in McConnell to
become the majority in Citizens United, ignore the doctrine of deference to the
other branches, overturn a
century of history, and determine that their theory of the First Amendment was
superior to that of their predecessors. As noted above, I believe their theory was only
an increment change from the Court's previous doctrine --but the resulting
practical change look set to be far more dramatic than the
doctrinal one.
Trevor
Potter
The main reason that people at the time insisted
that the Bill of Rights be adopted is that they recognized that these freedoms
needed to be guaranteed against (often) temporary majorities who would use
federal power against them. In other words, these freedoms would not
be popular with a majority of the people from time to time or in some
applications. In fact, even though the First Amendment protects the
four indispensable democratic freedoms, protecting the right of the people to
criticize our government, the ink on the Bill of Rights was hardly dry when the
Federalist Party passed the Alien and Sedition Act in the 1790s making it a
criminal offense to hold the government and public officials in
disrepute. They were attempting to prevent the emergence of the Republican
Party lead by Thomas Jefferson. They failed.
So here we have some liberals and progressives
taking polls on the First Amendment's protections -- like it matters -- and
using it to justify draconian cutbacks on those freedoms. And of course we
have the Democrats eager to do it to fend off the upcoming Republican victories.
Human nature just doesn't change and the more we find out about the Founders the
more we can admire their foresight and wisdom. Jim Bopp
In a message dated 10/18/2010 12:11:27 P.M. Eastern Daylight Time,
BSmith@law.capital.edu writes:
So from a quick review looking at issues
that pertain to free speech, it appears that the public is more
supportive of the Court's decision on Citizens United than it is of the
Court's decisions on flag burning and "crush" videos, and roughly equal to
support for not censoring video games and allowing tobacco advertising.
Meanwhile, another question shows that nearly 80% agree that corporations have
a right to free speech. p. 98. On other issues, it appears that
far more people agree with Citizens United than agree, for example, with
handgun control (p. 103), or that oppose Arizona's immigration law (p.
98).
It's also interesting the extent to which large
pluralities or majorities generally don't know what the Court has ruled on
most issues. Within this framework, I would anticipate equally large
majorities or pluralities that do not understand current law or actual
practices in life. I am a firm believer that the electorate will
generally get right the broad direction in which it seeks to move the
country, but that the advantage of representative government over pure or
direct democracy is that it allows for representatives to better inform
themselves, put more thought to issues, and make better decisions on the
specifics of public policy. The problem comes when politicians decide
that demogoguery and raw emotional appeals can get them elected better than
character, thoughfulness, and serious discussion.
Bradley A. Smith
Josiah H. Blackmore II/Shirley M. Nault Designated
Professor of Law
Capital University Law School
303 E. Broad St.
Columbus, OH 43215
(614) 236-6317
From: election-law-bounces@mailman.lls.edu on behalf
of Rick Hasen Sent: Mon 10/18/2010 10:58 AM To: Election
Law Subject: [EL] Electionlawblog news and commentary
10/18/10
October 18, 2010
"Senate Dem: Take up campaign finance bill in lame-duck
session"
The Hill reports.
Posted by Rick Hasen at 07:56 AM
"In important cases, Supreme Court outcomes sometimes
determined by a single word"
The Washington Post offers this
report.
Posted by Rick Hasen at 07:51 AM
"God Didn't Create Corporations"
Susan Brooks Thistlethwaite blogs.
Posted by Rick Hasen at 07:47 AM
Persily/Ansolabehere Data on Attitudes About Corporate
Spending in Elections
Following up on this post, via Doug
Berman comes a link
to this (preliminary version of?) the Persily-Ansolabehere study of public
attitudes toward Supreme Court constitutional decisions. The CU-related
questions are on page 101.
Posted by Rick Hasen at 07:44 AM
Cert. Denied in Simmons v. Galvin, First Circuit Felon
Disenfranchisement Case
SCOTUSBlog reports.
More from AP.
I expected this after
the Ninth Circuit's recent en banc ruling on this question eliminated the
circuit split.
Posted by Rick Hasen at 07:37 AM
October 17, 2010
"Groups Push Legal Limits in Advertising"
The NYT explores
501(c)(4) status. (More here
("A Profusion of Magic Words")). I give some of the basics in my recent Slate column on
secret donors.
Posted by Rick Hasen at 06:54 PM
"Democrats have raised $1 million from foreign-affiliated
PACs"
This
item appears at The Hill's blog.
Posted by Rick Hasen at 05:24 PM
"Axelrod Calls for End to Mystery Donors"
Roll Call reports on a sensible
Administration pivot from the issue of foreign donors to the issue of secret
donors more generally. Al Hunt's prediction, now
picked up in modified form as a NYT letter from
Washington, is that a scandal will emerge from all this secret money. And
history tells us that Washington money scandals lead to
congressional acquiescence in new campaign finance regulations.
Posted by Rick Hasen at 05:19 PM
"Political Ads Help Bolster TV Business"
TV is always
a winner.
Posted by Rick Hasen at 05:06 PM
Levitt: A "Democracy Facts" Product Label?
Rick has graciously invited me to write a campaign-finance guest post as
well, focused on disclosure. And I also offer my thanks for the opportunity.
 Rick has posted a number of campaign
finance items recently with a similar theme: significant donors sponsoring
political ads not in their own names, but in the names of organizations with
substantial positive valence and suggesting widespread support. Americans for
America and the Concerned Taxpayers of
America are only the most recent examples. The names seem designed to
enhance the credibility of the message, by encouraging viewers and voters to
believe that they represent the shared opinions of lots of like-minded
individuals.
In a new paper, I've suggested a new
model of disclosure, equipping viewers to see for themselves whether there are
2 like-minded concerned taxpayers, or 2 million, supporting a particular
communication. The model, based on the now-ubiquitous "Nutrition Facts" and
"Drug Facts" labels on supermarket and pharmacy shelves, involves a label for
"Democracy Facts" (at right, and linked here). Continue reading
"Levitt: A "Democracy Facts" Product Label?"
Posted by Justin Levitt at 01:38 PM
"Ballot Measure would resize Legislature"
News
from Alaska that does not involve how to spell a candidate's name.
Posted by Rick Hasen at 12:50 PM
"PACs linked to foreign companies legally donate millions to
U.S. campaigns"
A must-read
WaPo report.
Posted by Rick Hasen at 12:44 PM
Schleicher: The Parable of the Fox and the Target
[I have asked election law prof David
Schleicher to write a series of guests posts related to election law
issues in the 2010 elections. There should be one each week before the
election. Here's the first.--RH]
First, I'd like to thank Rick for
inviting me to write this column about the 2010 elections. One of the great
things about this election season has been the availability of blogs by
political scientists and statisticians (like the indispensible group blog The
Monkey Cage, Seth Masket's Enik Rising, Brendan Nyhan's blog, and of
course, Five Thirty Eight) to
provide better guidance about what actually effects voting patterns and what
is just journalistic noise. Election law scholars blog both pretty frequently
and insightfully, I think -- not only Rick, Justin and Dan here, but Rick
Pildes, Heather
Gerken, Michael
Kang and the people at Moritz
among a number of others --- but we have not as a group spent too much time
using the medium to address the big election law issues implicated by the 2010
elections. So I thought I would give it a go. I'm going to write three
columns: Today's is about campaign finance; next week's column will be about
election law and party polarization; my final column will discuss the failures
of primary elections and urban politics through the lens of the D.C. Mayoral
race.
-----
Virtually everyone who thinks about election law
has said something about Citizens United. This discussion has focused
both on normative questions, like the basic question of whether the Court
should have made such a sweeping decision, and on whole series of positive
questions about the decision's likely effects, including efforts to determine
how much corporate money will be spent in this election cycle, whether
Citizens United caused any increase, and to whom the benefits of
increased spending have run.
But there has been little focus on the
most basic question one might ask about Citizens United: Who is going
to change their behavior following the decision?
The answer to this
question might seem obvious -- Citizens United eliminated restrictions
on independent expenditures by corporations and unions and therefore they are
the entities who will change their behavior. But corporations and unions are
not monolithic. Some will spend money on politics; others will not. Before we
can make predictions about the long-run effects of Citizens United on
parties, candidates and public policy, we need to answer the question of which
corporations and unions are likely to spend more (and differently) in
elections.
One possible answer can be found in a story that took up a
day or two of headlines during the 2010 election, in what one might call The
Parable of the Fox and the Target.
Within days of one another, two
major corporations, News Corp, the parent company of Fox, and Target got in a
bit of hot water about their political spending. News Corp. gave $1M to
the Republican Governors Association ("RGA") and Target
gave $150K to Minnesota Forward, a group supporting Tom Emmer, a very
conservative candidate for Governor in Minnesota who, among other things,
supports a state constitutional amendment banning gay marriage. Both were
criticized, but the reactions were very different. News Corp. was teased in
the press for a day or two, but largely ignored the criticism, with Rupert
Murdoch noting
that he made the donation because he is friends with John Kasich, the
Republican candidate for Governor of Ohio. Target was subject to a
boycott led by LGBT groups and was forced
to apologize.
Why did News Corp. largely escape criticism, and
ignore what attacks came its way, while Target was both battered and cowed by
the criticism it received for its much smaller amount of spending?
The
answer, I think, lies in the ownership structure of the companies. And the
difference between Fox and Target can tell us a great deal about which
corporations are likely to spend money in politics. And, in turn, this can
tell us a lot about the likely effects of Citizens United on the country and
its politics.
Continue reading
"Schleicher: The Parable of the Fox and the Target"
Posted by Rick Hasen at 12:31 PM
Are Micro-Donors Fueling at Least Part of Tea Party?
I have written
extensively
about the role of micro-donors (donors giving under $200 in the aggregate to a
campaign) and micro-donations (donations under $200) to presidential
candidates, especially to the Obama 2008 campaign. Now comes this
CBS News report (based upon data from the Center
for Responsive Politics) that micro-donors are playing a key role for a
number of Tea Party candidates for House and Senate.
Of course, there's
big
money behind the Tea Party as well.
Posted by Rick Hasen at 11:58 AM
"Who is Bankrolling the Ballot?"
CBS News reports.
Posted by Rick Hasen at 11:48 AM
"Justice Department was wrong to dismiss the New Black Panther
case"
See this
letter to the editor in WaPo.
Posted by Rick Hasen at 10:21 AM
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