(5) PAC's (Political Action Committees)

(5) PAC's (Political Action Committees)

1. PAC's donate to party or candidate campaign funds

   • PACs can give $5,000 to a candidate committee per election (primary, general or special)
   • They can also give up to $15,000 annually to any national party committee, and $5,000 annually to any other PAC
   • PACs may receive up to $5,000 from any one individual, PAC or committee per calendar year
   • A PAC must register with the FEC within 10 days of its formation, providing name and address of the PAC, its treasurer and any connected organisations
   • PACs were first introduced in 1944. This was to avoid using funds from corporation or union treasuries (which is illegal)
   • PACs must disclose their donors and donations monthly and quarterly

2. Super PACs cannot donate to a candidate or party but can spend on actions that are directly coordinated by candidates or political parties

   • A new type of PAC was created after the U.S Court of Appeals decision in Speechnow v. FEC in 2010
   • Before this time - PACs had strict regulations on spending and receiving money. "Soft-money" (i.e. spending on advertising not directly linked to a party or candidate) was prohibited (2002 campaign led by John McCain)
   • These PACs make no contributions to candidates or parties.
   • They do, however make independent expenditures in federal races - running ads or sending mail or communicating in other ways with messages that specifically advocate the election or defeat of a specific candidate.
   • There are no limits or restrictions on the sources of funds that may be used for these expenditures
   • Like "normal" PACs they must disclose their donors and donations monthly and quarterly
   • From the Court decision to Dec 32st 2011 super PACs raised $96 mil
   • During the 2012 election super PACs spent $547 mil, of which 78% was spent opposing candidate. Significantly more was spent on opposing Obama's candidacy than Mitt Romney's

3. Leadership - PACs

   • These PACs are when a candidate contributes some of their campaign funding to another candidate. The same regulations on spending and receiving donations apply
   • However, Leadership-PACs do not need to disclose their donations
   • Can be used to further political careers - undemocratic

4. Foreign-connected PACs

   • These are PACs formed by American divisions of corporations. It is illegal for non-citizens to donate to campaign funding. However, American citizens working in American divisions of corporations can donate and set-up PACs
   • Foreign-Connected PACs have the same regulations as "normal" or "Super" PACs
   • E.g. BAE (a British owned company) contributed nearly $200 k to PACs this quarter

5. Advantages of PACs

   • Removes "shadowy money" seen in Nixon administration
   • Makes it easier for citizens to become politically active and aware - they can donate their place of work for e.g.

6. Disadvantages of PACs

   • Can make elections hugely expensive - Super PACs mean an unlimited amoute of money can be raised and spent on candidates.
   • Super PAC contributions come from largely wealthy individuals as opposed to organisations come from largely wealthy individuals as opposed to organisations or the electorate as a whole (73.8% from individuals vs. 4.6% from unions).
   • Foreign-Connected, Leadership and Super PACs all contribute to the idea that if you have money you can influence electoral process - is this undemocratic?
   • Super PACs make it harder to track and trace donations - the return of shadow money?