(5) PAC's (Political Action Committees)

PAC's donate to party or candidate campaign funds
1. PACs can give $5,000 to a candidate committee per election (primary, general or special)
2. They can also give up to $15,000 annually to any national party committee, and $5,000 annually to any other PAC
3. PACs may receive up to $5,000 from any one individual, PAC or committee per calendar year
4. 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
5. PACs were first introduced in 1944. This was to avoid using funds from corporation or union treasuries (which is illegal)
6. PACs must disclose their donors and donations monthly and quarterly
Super PACs cannot donate to a candidate or party but can spend on actions that are directly coordinated by candidates or political parties
1. A new type of PAC was created after the U.S Court of Appeals decision in Speechnow v. FEC in 2010
2. 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)
3. These PACs make no contributions to candidates or parties.
4. 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.
5. There are no limits or restrictions on the sources of funds that may be used for these expenditures
6. Like "normal" PACs they must disclose their donors and donations monthly and quarterly
7. From the Court decision to Dec 32st 2011 super PACs raised $96 mil
8. 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
Leadership - PACs
1. These PACs are when a candidate contributes some of their campaign funding to another candidate. The same regulations on spending and receiving donations apply
2. However, Leadership-PACs do not need to disclose their donations
3. Can be used to further political careers - undemocratic
Foreign-connected PACs
1. 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
2. Foreign-Connected PACs have the same regulations as "normal" or "Super" PACs
3. E.g. BAE (a British owned company) contributed nearly $200 k to PACs this quarter
Advantages of PACs
1. Removes "shadowy money" seen in Nixon administration
2. Makes it easier for citizens to become politically active and aware - they can donate their place of work for e.g.
Disadvantages of PACs
1. Can make elections hugely expensive - Super PACs mean an unlimited amoute of money can be raised and spent on candidates.
2. 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).
3. Foreign-Connected, Leadership and Super PACs all contribute to the idea that if you have money you can influence electoral process - is this undemocratic?
4. Super PACs make it harder to track and trace donations - the return of shadow money?

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(5) PAC's (Political Action Committees)

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	Created by Marcus Danvers over 10 years ago