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Doug Kendall

Doug Kendall

Posted: January 11, 2010 10:54 AM

The retirement decisions by Senators Chris Dodd and Byron Dorgan last week gave pundits and analysts story leads, but a far more important announcement is coming, maybe as soon as tomorrow. The Supreme Court, with its five-justice conservative majority, is expected imminently to release its long-awaited decision in Citizens United v. FEC. The ruling could have a much greater influence on the prospects of progressives in 2010 than any individual candidate's decision to run. Indeed, the Court could change electoral politics as we know it in America today by perverting the Constitution to bar the people and their elected representatives from limiting corporate political spending.

Citizens United involves a hit-job documentary called Hillary, The Movie, produced by David Bossie for Citizens United to coincide with the 2008 presidential primary season. The case began as a relatively insignificant, technical challenge to the Federal Election Commission's decision to treat the film's production and release as "corporate electioneering," subject to regulation under the McCain-Feingold campaign finance law. It was transformed into a potential blockbuster last June when the Supreme Court ordered the parties to brief and argue the question of whether the law itself, which restricts the political use of corporate funds, is unconstitutional and whether prior cases upholding such restrictions should be overruled.

Citizens United is now arguing that expenditures by corporations in elections should be treated identically to those of individuals. If the Court accepts this argument, it would jettison a distinction that has been in place in our Constitution since it was written and in our statutory law since the Tillman Act of 1907. As a result, corporations would get a green light to spend unlimited amounts of money in elections.

To see the significance of this, consider that in his historic run to the presidency, Barack Obama broke every political fundraising record, raising nearly $750 million from more than a million contributors in 2007 and 2008. This sounds impressive until you consider that during 2008 alone, ExxonMobil Corporation generated profits of $45 billion. With a diversion of even 2 percent of these profits to the political process, Exxon could have far outspent the Obama campaign and fundamentally changed the dynamic of the 2008 election, perhaps even the result.

Projecting this forward to 2010, ExxonMobil could spend a small fraction of its profits and transform close elections involving supporters of a clean energy bill that moves the economy away from fossil fuels. Insurance companies, drug companies and bailed-out Wall Street banks could do the same thing in races involving candidates whose positions they dislike. President Obama and his supporters have learned this year just how hard it is to bring change to Washington. Just think about how difficult change will become if corporations can use their general treasuries to put a gun to the heads of vulnerable politicians.

Opponents of campaign finance laws claim that such a ruling overturning limits on corporate spending in elections is necessary to vindicate the First Amendment rights of corporations. That's a crock. The Constitution never mentions corporations - it protects "we the people" - and from the dawn of the Republic the Supreme Court has held that corporations, which are artificial entities, created by the state to facilitate commerce, and given special privileges that average citizens don't have, are appropriately subject to greater government oversight. A ruling by the Court overturning this centuries-old tradition would be indefensible judicial activism, as explained in detail in this historical analysis released by Constitutional Accountability Center in December.

Distinctions in the constitutional protections afforded to living persons and corporations are particularly appropriate in the political arena. Corporations are not citizens, they do not vote, and cannot run for office. "We the People" create corporations and we provide them with special privileges that carry with them restrictions that do not apply to living persons. This is the law today, but, tragically, it may not be the law at week's end.

Indeed, whenever the case is decided, Citizens United may ultimately top Bush v. Gore as the leading example of how the conservative-dominated Supreme Court is overreaching and thwarting progressive change: while Bush v. Gore gave us eight years of President George W. Bush, Citizens United could put progressive candidates at a disadvantage for generations to come. And Citizens United is only one of many cases in which the progressive agenda is at risk. The lede of this recent article in The Hill newspaper says it all: "Republicans and allied groups say they will spend millions to oppose healthcare reform and other Democratic initiatives in the courts, which they see as a last line of defense against President Barack Obama's agenda."

It's hard to predict with any great certainty what the Court will decide in Citizens United. The conservative majority on the Court seemed poised to issue a sweeping ruling last spring striking down a critical component of the Voting Rights Act, then ended up deciding the case on narrower grounds. A similar result is still possible in Citizens United.

What we do know is that the courts will end up deciding whether just about every part of the progressive agenda stands or falls. If progressives need any reminder of the central message of Bush v. Gore, here it is: courts matter.


 

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humanbeing-rick
Born in the USA 1947
01:43 PM on 01/12/2010
"Citizens United is now arguing that expenditures by corporations in elections should be treated identically to those of individuals."
Who are these Citizens United? Are they Americans, or corporate stooges?
If the court hands over the power of the people to corporations, then it will be our patriotic duty to revolt and take our government back. Dont tread on me!
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HUFFPOST SUPER USER
cvwilson
01:00 PM on 01/12/2010
If the court does this, are they going to make a distinction between corporations owned by American citizens and those owned by foreigners? If they are going to give citizenship rights to any corporation that is incorporated in the United States and not look at the ownership of that corporation, then what is to stop China or Saudi Arabia (as examples) from setting up corporations in the United States and then using them to flood money into our political process?
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humanbeing-rick
Born in the USA 1947
01:53 PM on 01/12/2010
Exactly, they could set up an off shore dummy office in America to do that, just like our rich hide their money in off shore tax havens. These "global corporations" have allegiance to no country, they are global. They have vested interests for profits all over the world, and America is just another pawn in their game. Global corporations do not represent American interests. This is treachery by scoundrels pure and simple.
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BBackSoon
Hello, I must be going.
12:10 PM on 01/12/2010
I have only read a few articles about this but I am going to make just one simple assumption. I bet that if the SCOTUS opens the flood gates to corporate money they law will go into effect almost immediately, while any law that will protect the consumers and or citizens must be rolled out slowly (Read ‘Over Years’) to give business a chance to comply.
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Uncle Bill
ex-lawyer and teacher
11:20 AM on 01/12/2010
If corporations are granted all the rights of natural persons, equal protection would seem to demand equal responsibilities and equal treatment vis a vis taxes, criminal prosecution and punishment etc. There are a good many legal reasons for differing treatment, but they aren't likely to satisfy the voters, who might find the notion that corporate taxes should be exactly like personal income taxes, with the same exemptions, deductions and tax rates. Voters might decide that a 1 billion and above top bracket and a 100 million dollar second bracket sounds pretty good and that a top tax rate of say 50% on earnings about 1 billion dollars and 45 % on income over 100 million might allow adjustments to the middle class brackets that they would like and perhaps reduce our debt burden as well.
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Uncle Bill
ex-lawyer and teacher
11:10 AM on 01/12/2010
All is not lost. Any outright assertion by the Court that first amendment rights of corporations are co-extensive with those held by citizens will trigger an avalanche of unintended consequences. Commercial speech is now considered less privileged than private speech and thus we have laws requiring warning labels on products (e.g. cigarettes) and restrictions against false and misleading advertising. Blue sky laws, mandatory disclosures in lending, mortgages, real estate, etc would also be subject to attack under the theory that they compel speech by corporations, and just as citizens may not be subject to prior restraint, they cannot be compelled to speak absent some legal duty to the person spoken to.
Even if we accept the notion that money is speech (a questionable proposition, but one the Court has accepted) and that corporations have the same first amendment rights as natural persons, restrictions are still possible. The analysis then becomes one of competing rights and interests, with strict scrutiny applied to the statutory scheme. It may be difficult, but it is not impossible to imagine restrictions on campaign contributions based on the threat they pose to honest government, or to make an equal protection argument that corporations would then be limited to amounts applied to individuals.
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AmazingChicken
10:40 AM on 01/12/2010
If successful, this will mean the end of personal democracy - faster than if corporations remain with the status they have, which is wrong.
This user has chosen to opt out of the Badges program
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10:02 AM on 01/12/2010
If corporations have all the rights of legal persons, can gays marry if they incorporate themselves?
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BBackSoon
Hello, I must be going.
12:06 PM on 01/12/2010
What a great question!
09:44 AM on 01/12/2010
This issue scares me more than any terrorist threat. If the Supremes give corporations the rights that have been limited to individuals, than we forever become a country in which the almighty dollar decides our country's future. I hope that the right of the individual will out, but as a pessimist, I am making plans for an overseas retirement if the decision comes down for corporate interests!
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EbonBear
opinionated hairy man
08:39 AM on 01/12/2010
The decision should be an open-and-shut case. Sadly, with a hard-right majority on the SCOTUS (at least two of whom don't give a hoot about the law), I have a horrible suspician that we should be welcoming our corporate overlords.
05:50 AM on 01/12/2010
I guess the best way to hide something Terrible is in plain Sight.
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wattnot
I'm a Lumberjack and He's OK.
03:43 AM on 01/12/2010
If a decision is handed down that removes all restrictions on the use of money to buy political outcomes, at least the fiction that that is not already the case will also be removed. England's rotten boroughs are the forerunner to America under these constitutional arrangements, and the collapse of the free society is the inevitable result. The foxes are in the henhouse and have been for a long time. When the hens are gone the foxes will starve to death. That too is inevitable. Fox is a common and a proper noun, of course.
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Marcospinelli
an old liberal Democrat, a 'New Deal'-Democrat
03:21 AM on 01/12/2010
To those who thought that during the 2008 campaign, Obama was a moderate and wasn't trying to deceive anyone, what did you think he meant when you heard him saying during the campaign that people had to stay involved after the election, that they couldn't just vote for him, go away for four years and expect that he would do what they had hoped. He said that there were powerful interests working against what the people wanted, and if We The People wanted Obama to do our bidding, we would have to MAKE HIM DO IT.

What did you think he was talking about? Did you think he was trying to deceive the liberals and progressives into believing that he was one of them?
02:14 AM on 01/12/2010
Can an individual spend as much as they wish on political adds as well ? I thought there were limits on how much someone could spend. Why not just say that you cant spend any money on a political add unless you can vote for that person. If you cant vote for someone then you have no right to spend money in favor or against them. Go spend money in your own state or district and influence your own legislator , mayor , senator , etc. . Corporations cannot vote so therefore they could save their shareholders money. Company's have a right to lobby , not peddle influence.
06:52 AM on 01/12/2010
" I thought there were limits on how much someone could spend." The rightists on the court would like to get rid of existing limitations as well; whether they could work that into a decision on Citizens United is another matter. The question you raise concerning voting is also interesting - if corporations are granted full citizenship then, yes, they would technically have a right to vote. Howevr, in order to practice that right, some method would need to be found for their doing so, and this would once again end up in court, presumably as a corporation's suit for voting rights (which is not likely), and until such a suit reaches SCOTUS on appeal, the Court would not have to say anything about corporate voting.
The legal confusions such a decsion as the Court now contemplates, together with the damage it inflicts on Constitutional law and practice, doesn't only affect progressive agendas; I'm surprised more on the right - especially libertarians - don't recognmize how this reduces the government's capacity to represent common individuals - human beings, that is.
02:08 AM on 01/12/2010
The doctrine of corporate personhood creates an interesting legal contradiction. The corporation is owned by its shareholders and is therefore their property. If it is also a legal person, then it is a person owned by others and thus exists in a condition of slavery -- a status explicitly forbidden by the Thirteenth Amendment to the Constitution. So is a corporation a person illegally held in servitude by its shareholders? Or is it a person who enjoys the rights of personhood that take precedence over the presumed ownership rights of its shareholders?
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nofir2
03:58 AM on 01/12/2010
Correct! If the court decides based on the first amendment rather than the contradiction between the 13th and 14th amendment. We The People have a problem.
However, Not sure where Scalia is going but some insight into how he may decide can be found in footnote 79.
http://www.acslaw.org/files/Beyond%20Citizens%20United.pdf
In the September 2009 re-argument of Citizens United, Justices Stevens, Ginsberg, and Breyer all suggested a questioning of the assumption that a corporation as a corporation has full fundamental rights, and in her first appearance on the Court,
Justice Sotomayor stated: .........Because what you are suggesting is that the courts who created corporations as persons, gave birth
06:43 AM on 01/12/2010
"Or is it a person who enjoys the rights of personhood that take precedence over the presumed ownership rights of its shareholders?"
That is the direction The Court's rightists would like to push. The understanding would be that the shareholders do not own the corporation but merely enjoy a kind of partnership with it. However, this may be a major sticking point even for the rightists, since, as you seem to suspect, it could necessitate a major revision of corporate law, at least in court interpretations.
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Anthea Carson
12:48 AM on 01/12/2010
Truly scary stuff. I wonder if congress will pass a new law restricting corporate funding if Scotus really does overturn this law.
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BBackSoon
Hello, I must be going.
12:07 PM on 01/12/2010
Not if the money starts flowing.