Worse than Watergate. Supreme Court Campaign Finance Case Could Unleash Unprecedented Political Corruption

By Sam Pizzigati

The U.S. Supreme Court is mulling a case that could end up giving America’s wealthy a perpetual green light to contribute as much as they want directly to politicians and political parties.

Credit Shaun McCutcheon, an Alabama businessman who owns an electrical engineering company, for getting this ball rolling. In the 2012 election cycle, McCutcheon contributed heavily to conservative candidates and Republican Party committees. But the experience left the mega millionaire feeling terribly aggrieved.

pizzigati-watergate-tonynetone

Federal campaign finance reform legislation enacted four decades ago in the wake of the Watergate scandal limits how much individuals can give directly to candidates and political parties. In 2012, McCutcheon ran up against those limits, then sitting at about $46,000 for candidates and $70,000 for party committees.

McCutcheon had wanted to give candidates and party panels much more. Under the law, he couldn’t then — and he can’t now either. The current, inflation-adjusted aggregate limit for the 2014 congressional elections: $123,000.

But wealthy individuals like McCutcheon, thanks to previous court decisions, can spend on their own, independently of candidate and party campaigns, as much as they want to influence a federal election’s impact.

In other words, a billionaire can’t currently give a particular congressional candidate a $1 million check. But the same billionaire can legally hand a TV station $1 million to run 30-second ads that extol that candidate’s virtues — or attack that candidate’s opponent.

This sort of “independent expenditure” can make a major impact as campaigns play out. Independent expenditures can also complicate campaigns, especially when deep-pockets go “off-message” in the advertising they finance. In most situations, candidates and political parties would much rather have billionaires contribute directly to them and not go off and spend independently.

If the Supreme Court uses the McCutcheon case to erase our last remaining Watergate-era campaign funding limits, these political insiders will get their way. For the first time in years, they would be able to solicit unlimited contributions from America’s wealthy.

That turn of events, public interest groups point out, would leave political candidates and party officials even more eager to grant wealthy donors improper influence.

Fred Wertheimer, America’s elder statesman of campaign finance reform, is imparting a particularly dire warning. Repealing limits on direct contributions to candidates and parties, he contends, would take us right back to the same political corruption that led to the Watergate scandals.

But Wertheimer may actually be understating the danger. Repealing limits on direct contributions to candidates and parties would likely create a political environment far more toxic than anything we experienced before Watergate.

Back before Watergate, in the mid 20th century, America’s rich didn’t have nearly as much wealth.

Some numbers: In 1972, the year of the Watergate burglary, the nation’s top 0.1 percent averaged, in today’s dollars, the equivalent of $1.48 million in income. In 2012, America’s top 0.1 percent averaged $6.4 million. That’s more than a four-fold increase.

But the gap between rich then and rich now becomes even greater when you take taxes into effect. In 1972, taxpayers averaging $1.48 million in today’s dollars paid 40.7 percent of their total incomes in federal income tax. In 2012, note Tax Policy Center estimates, taxpayers in the top 0.1 percent paid federal income taxes at about half that rate.

The bottom line: America’s really rich in 2012 had over six times more after-tax dollars in their pockets, after inflation, than their counterparts in 1972.

We shouldn’t fear a wave of Watergate corruption. If the Supreme Court ends all limits on the campaign cash the super rich can throw at their candidates, American politics faces dangers far more troubling than anything Richard Nixon ever imposed upon us.

OtherWords columnist Sam Pizzigati, an Institute for Policy Studies associate fellow, edits the inequality weekly Too Much. His latest book is The Rich Don’t Always Win: The Forgotten Triumph over Plutocracy that Created the American Middle Class. OtherWords.org

SHOP GLOBAL RESEARCH

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

Comment by truth on November 2, 2013 at 3:21pm

the chat widget is on hundreds of pages and may not be specific to one or the other

Comment by GoldenDawnUSA on November 2, 2013 at 3:06pm

comment by James on "October 21st" - yet, all those ignorant anonymous rants are dated yesterday & today - huh?

Comment by truth on October 21, 2013 at 1:06pm


Check out the member blogs, videos, and discussions http://12160.info/

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted photos
7 hours ago
tjdavis posted a video

Berlin 1945: Waiting for the End | Diary of a Metropolis UNCENSORED FOOTAGE

At the beginning of 1945, Berlin is under the illusion that they will survive the war. Every day there are bombing attacks, fires to be extinguished, and cor...
21 hours ago
Burbia posted a blog post

The Illusion of Fuck You Money

The United States use to have this idea that once you make enough money, you.can do as you want.…See More
yesterday
tjdavis posted videos
yesterday
tjdavis posted a blog post
Thursday
Less Prone favorited cheeki kea's photo
Wednesday
cheeki kea posted a photo
Tuesday
Less Prone favorited tjdavis's video
Monday
Less Prone posted a video

“I Helped Build It!” A WEF-Davos Insider EXPOSES The Great Reset

Former investment banker and ESG “whistleblower” Desiree Fixler joins The Winston Marshall Show to expose what she says is one of the biggest financial scams...
Monday
Doc Vega posted a blog post

One Step Too Far Weighs in on Current Events

We now bring you this week's program on One Step Too Far. Bear with us as more BS floats to the…See More
Sunday
Burbia's blog post was featured

A Masterclass Is Being Played Out For Those Who Have The Eyes To See

A question can be asked, why do Jews want a multicultural community in a host society? It is to…See More
Sunday
Doc Vega's 4 blog posts were featured
Sunday
tjdavis's blog post was featured
Sunday
cheeki kea commented on Burbia's video
Thumbnail

the WITCH language of MYSTERY BABYLON (DOCUMENTARY)

"Great video to watch, and it turns out english is a bizarre and formidable language in its…"
Sunday
cheeki kea favorited Burbia's video
Sunday
Less Prone left a comment for Roberto Castorena
"Welcome to a revolutionary concept in public communication, the truth."
Jan 15
Less Prone posted a blog post

Reiner Füllmich imprisoned for investigating the Covid scandal

Rainer Füllmich, a lawyer investigating the Covid scandal was illegally captured in Mexico in…See More
Jan 15
Burbia posted a video
Jan 15
Doc Vega posted blog posts
Jan 14
Less Prone favorited Doc Vega's photo
Jan 13

© 2026   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted