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Richard C. Leone

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Corporate Personhood: How Far Does the Rabbit Hole Go?

Posted: 05/31/2012 1:58 pm

As the frenzied political campaigns grind on, one set of winners is already clear: wealthy contributors and politically active corporations. Because of the new rules of the game, 2012 is already on pace to be a record year in terms of campaign expenditures. A great deal of this boom in political spending has been made possible by recent Supreme Court decisions that struck down the limits on campaign contributions from individuals to so-called super PACs and other "independent organizations created to support specific candidates.

Another Court decision, even more disturbing, erased the long established ban on corporate spending and contributions to influence the outcome of the elections. This double whammy means that candidates for Congress as well as the presidency will find themselves heavily dependent on fund raising success involving direct expenditures by companies. And, what will these new wellsprings of money expect to get in return for their largess? You can bet it will be more than a handshake.

Who knows? In the case of corporations one can imagine an even more personal agenda. Start with the fact that the Supreme Court has affirmed unequivocally that corporations, even those that operate out of a post office box in the Cayman Islands, are persons. And in general, the Court has ruled that that they are endowed with certain "inalienable" rights, like free speech.

The practical effect of these decisions means, in effect, that companies can spend as much as they want to influence the outcomes of political campaigns without necessarily disclosing (apparently to that class of their fellow persons who walk on two legs) any of their gifts publicly. These changes set the stage for a powerful addition to the role corporations may play in American life. The Court hasn't specifically ruled on whether this blanket protection of corporate free speech means that "truth in advertising" restrictions on corporate claims are now defunct. One person's sales pitch may be another's dangerous lie, but they can both be an exercise in free speech.

Of course, none of this answers the question of who is speaking when a corporation -- behaving like a "person" -- makes political noises. Some strict constructionists might argue that corporate speech is more akin to that of ventriloquist dummies. Some human-type person is pulling the strings, writing the script, drafting the press releases, signing the checks, etc. But in the eyes of the Court, it appears that corporations have some sort of independent existence of their own -- a quality that entitles them to the protections afforded to human beings. (Other animals, it should be noted do not enjoy this status -- at least not yet.) The Court does have an important, if unintentional, point to make in this regard: Put simply, you'd have to be naive not to understand that corporation executives are pulling many of the strings in 21st century America

But have the majority of the Justices gone far enough? If corporations are truly persons, shouldn't they be empowered to do all the things that other "persons" can do? For example, why not give them the right to marry each other. Oh, you may say, they have that already, though in their case it's called a merger. Still if you can't call it marriage, is it full equality? And while conservatives may be alarmed at the prospect of marriage equality for corporations, there is a bright side of to the story. After all, fundamentalists can take solace from the fact that there seems to be general agreement that corporations attain full person status at the instant the papers are signed.

Will corporations get all the rights that personhood implies? It's hard to say; only one thing is certain, they won't have any trouble raising the money for campaigns to approve the corporate equality agenda, whatever it turns out to be.

 
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HUFFPOST SUPER USER
galvestonguy68
01:44 PM on 06/01/2012
The solution is simple.
American elections are only for americans.
Any corporation with a single non-citizen employee or share holder or accepts any money from non-citizens should be excluded from political speech.
This common sense approach would prevent most corporate donations.
This would only take a simple rule clarification by the FEC.
This would not even require a new rule but just a clarification of what defines a foreign person as foreign persons are forbidden from donating to political campaigns.
12:42 PM on 06/01/2012
Corporations are therefore subject to the death penalty. Start with the tobacco industry, for the many murders these corporations have committed. Who else wants to see these "people" on death row?
Javalation
Laughing in a Daydream
11:54 AM on 06/01/2012
Corporations have been given supercitizenhood. They essentially have all of the benefits, with practically none of the responsibilities or possibilities of punishment. Where in the Constitution is this status covered? Nowhere, because corporations aren't even mentioned once. Their entire status has been granted by conservative leaning Supreme Court decisions. You know, those sanctimonious champions of the document... when it is in line with their agenda, that is.
Bufford P Tusser
Impeach this!
10:19 AM on 06/01/2012
As obviously wrong as it is to allow huge money and therefore influence into the political system via Citizens United, our resident Bridge dwellers cheer it on under the cover of "free speech" as the see the ruling to favor their party which it does.

The GOP as become the party of "the ends justify the mean's," always.

The w@cky paranoia they've been fed identifies those of us with divergent beliefs from their's as un-American and a danger to the republic, hence, anything goes.

Reprehensible
09:06 AM on 06/01/2012
Well... you certainly opened a can of worms.

corporations do already have individual rights, more so than you or I. Or, at the very least we can say with certainty that, corporations have more rights than minorities. Homosexual couples for example, cannot marry without the heavy burden of knowing that the national public discourse, and politic, are both operating against their interests.

BUT

corporations can marry ANY other corporation, or PERSON, they wish.

the tipping point has been reached. when corporate and religions rights surpase those of the individual, you have a neo fascist "state".

wake up people.
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Inkosi
The gods themselves rage against stupidity
10:08 AM on 06/01/2012
If corps are people - then they can be sued as people. Okay so Atty Holder, get rollling! All those Big Pharma corps who put dangerous drugs on the market, knowing they were dangerous (if Mit gets in, the people will have no protection or recourse) , all those polluters (Factory farms) should be prosecuted, all those criminal bankers too. If Donald can file bankruptcies repeatedly - so can everyone else. The BK law is harsher for individuals than it is for corporations!
Bufford P Tusser
Impeach this!
10:24 AM on 06/01/2012
They "pearsonhood" thingy is only going to go so far. They will stop equating corps with people at the point where it's not advantageous to them.

The argument you may ask?

"Well that's just silly, corps aren't literally persons" as the draw the line wherever they wish.

Bank it!
HUFFPOST SUPER USER
MoreFreedom
09:01 AM on 06/01/2012
Leone might as well replace "corporations" with "unions", or "political parties." All three contribute heavily to candidates and campaigns and none are a person with a vote. Of course, liberals only want to stop speech by corporations, but are silent regarding unions and political parties. And they ignore the fact that only citizens may vote, as it's not money that elects politicians, but voters.
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Inkosi
The gods themselves rage against stupidity
10:09 AM on 06/01/2012
But money can buy a lot of votes, put out misinformation (lies), rig elections by intimidating voters, purging voter rolls. Money talks and ethics walk.
HUFFPOST SUPER USER
MoreFreedom
02:41 PM on 06/01/2012
Are you admitting, your vote can be bought and that you listen to (but don't verify) political ads. If you aren't admitting that, then how can you say others do? Isn't it stupid to do so (you do write "The gods ... rage against stupidity").

Regarding intimidating voters and purging voter rolls. The Black Panthers were intimidating voters, but Obama/Holder threw the case out (after they won it), so we can expect more from them, but I wouldn't expect it from conservatives. I've not seen any examples of voter intimidation from the right, just the left. Yes, ethics walked there.

Money may talk, but it doesn't vote, voters do.

What exactly is wrong with purging voter rolls of the dead? Do you think George Washington should still be on the voter rolls in Virginia? Of course if we find some partisan removing legitimate voters from the rolls, that's another story (but I've seen no reports of this). On the other hand, I've seen plenty of reports of ACORN and it's follow on organizations committing voter fraud doing things like registering Mickey Mouse as a voter.
HUFFPOST SUPER USER
John Kelley 1
10:29 AM on 06/01/2012
You do realize that the amount of money that corporations can flood into an election will dwarf all other fundraising sources combined. Furthermore, political parties have always been allowed to contribute to political campaign efforts, because they're political parties.
11:03 AM on 06/01/2012
Spending money on advertising does not mean that you will get more votes. Silencing opposition does tend to help the left sell its failed ideology though it is becoming harder to sell what is bad as something good when your lies are being pointed out by reality first and foremost. SuperPACS come in a distant second to that, comrade.
HUFFPOST SUPER USER
MoreFreedom
02:48 PM on 06/01/2012
You do realize that money flowing from corporations and unions go to politicians who've shown they'll give government favors for campaign cash? And you do realize that corporations and unions have no power to force government politicians to give them favors, only politicians have the power to grant government favors (or to send in the government regulators to tie up the business - i.e., politicians have carrots and sticks - corporations don't).

And you do realize the political parties, and the people running them, have their own agendas often contrary to the best interests of citizens in general, so their contributions go to candidates whom they approve (but not necessarily favored by the voters in the party - we've seen many candidates get support from their party before the primaries are even done).
S M V
Give me your tired, your poor, Your huddled masses
08:13 AM on 06/01/2012
Question: Companies that publish news are corporations. Should their political speech be restricted? If not then what is the difference between the Wall Street Journal/ NYT publishing opinion pieces that are basically campaign ads, and PAC supported by GM running an ad?

Super PACs have taken the power to control the message away from the parties and the incumbents. Fear of PACs have made formerly safe incumbents very nervous. They know that at any time a PAC might come in with huge funds and challenge them.


What people need to understand is that politicians are self interested people. Consiously or not they will sell their power to those that can benefit them the most. Corporate speech does not change this reality. It just makes it more obvious.

This is a good thing. Hopefully people will learn to distrust politicians enough that we finally put real limits on their power.
HUFFPOST SUPER USER
John Kelley 1
10:31 AM on 06/01/2012
How are the people going to place limits on politicians' power when said politicians are the ones in control of the political process and are being bought and sold by corporate donors?
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HUFFPOST SUPER USER
PrometheanSalvation
Bringing fire to cleanse the land.
11:54 AM on 06/01/2012
So if we give away our democracy we can reform it? Brilliant.
S M V
Give me your tired, your poor, Your huddled masses
12:36 PM on 06/01/2012
We are giving nothing away except the illusion that it is OUR democracy. That the politicians will act in OUR best interest.

When children stop believing in Santa, do they give up all those gifts?
07:58 AM on 06/01/2012
And, of course, there is nothing to stop, say, China from 'investing' a few billions dollars at any time to sway any election - in the United States.

Chew on that, one, all you 'free 'Murikins'.
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AsItEverWas
Communism is a rightwing conspiracy
09:22 AM on 06/01/2012
F&F'd

...or Iran/Israel/Venezuela/Saudi Arabia/Druglords or anyone else that would be interested in a certain outcome in the US. If corporations have the rights of a person then they should have the same responsibilities including susceptibility to the same standards of taxation and law. Corporation taxes should be raised to parity with individuals just for a start.......
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AsItEverWas
Communism is a rightwing conspiracy
09:31 AM on 06/01/2012
this would boost smaller businesses and even benefit creator corporations but would severely restrict the financial corps responsible for the GFC since a lot of their capital gains would have an effective tax rate around 80%
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HUFFPOST SUPER USER
rothomaha
The Truth will out
07:39 AM on 06/01/2012
According to a US President, who was forced into office and then forced to make one of the most significant decisions in the history of this planet, "The Buck Stops Here"! Hence, I would submit that, along with megacompensation to a CEO goes the legal responsibility of "personhood" of his corporation. To wit, any scent of legal shenanigans should be his/her to answer for, and if convicted of a civil offense, the fine should be levied upon him/her. In the event a criminal offense is proven, the sentence should be served by him/her. In this way, "personhood" would be legitimized and CEO's would be forced into acting with integrity. Let them work for their obscene salaries - getting fired after banking 100 million is not what I'd call a real penalty! If SCOTUS wants Citizens United, then we want responsibility!
08:00 AM on 06/01/2012
What?

But we HAVE 'responsibility'!

YOU are 'responsible' to bow down before the mighty corporatioons, shut up, and do their bidding!
HUFFPOST SUPER USER
MoreFreedom
09:08 AM on 06/01/2012
Corporate officers are legally responsible for criminal acts. Why do you think the feds are investigating MF Global?

Also worth asking, is why the feds won't provide immunity to the MF Global treasurer for her testimony regarding Corzine's orders to gamble with client money on MF Global's behalf? The reason of course, is that Obama's appointed prosecutors don't really want to jail a big campaign bundler for Obama. Which goes to show, that the real crooks are the politicians, who hold the power of prosecutorial discretion, and the power to give government favors (subsidies, government guaranteed loans, government contracts, tax breaks, "regulations" inhibiting competition, etc.) to corporations (normally in exchange for campaign cash).

Corporations can't force government to give it favors, only politicians can. Money isn't corrupting politics, politicians are corrupting commerce (to get money from it). Money/speech doesn't elect politicians, voters do.
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HUFFPOST SUPER USER
PrometheanSalvation
Bringing fire to cleanse the land.
11:58 AM on 06/01/2012
Money is the corrupting influence. Anyone who says otherwise is a fool, or believes you are.
lastpost
see biography
07:16 AM on 06/01/2012
"Corporate Personhood:"
Can they serve time for compounding the felony, of refusing to serve their country or pay taxes?

"the new rules of the game"
We each spot Google a Dollar, and they go in and buy government back for us.

"the long established ban on corporate spending and contributions to influence the outcome of the elections."
Wasn’t that covered by the Constitution’s prohibition of political reward/inducement?

"the Court has ruled that that they are endowed with certain "inalienable" rights, like free speech."
Does that count even if those words are coming from an entity hidden behind a curtain? Like some non-Ossiferous wizard maybe.

"persons who walk on two legs"
bad. Persons who walk in and give politicians an arm and a leg-up, good.

"none of this answers the question of who is speaking when a corporation -- behaving like a "person" -- makes political noises."
Nor if its had its IQ established recently. Since surely “vacant” signs on corporate HQs point to something.

“ventriloquist dummies.”
Gribe, Guy-off, an’ Gutter-up ‘ith a Gottle o’ Gollinger.

"corporations have some sort of independent existence of their own"
God the father, god the son, and god! the corporations are coming.

"why not give them the right to marry each other."
Wouldn’t that result in preachers sending emissaries ‘round, to educate them out of it?

"Will corporations get"
possessed by devilishly evil spirits? As such demons will need casting out. Let me hear you say IRS.
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Inkosi
The gods themselves rage against stupidity
10:16 AM on 06/01/2012
Tax the corporations the same as the middle class American!
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HUFFPOST SUPER USER
rhd21
06:36 AM on 06/01/2012
A corporation is a separate and distinct legal entity that has privileges and liabilities that are distinct from those of its members. A key feature of most corporate entities is limited liability, a privilage granted by the state that shields it's officers, directors and employees from being held individually or severally liable for their acts and omissions. While there may be some merit to the argument that corporations have the right to exercise "free speech" in the form of monetary contributions to politicians and political campaigns, what SCOTUS may have inadvertently done here is open the door to the slow erosion of what it it means to be a corporation.
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ljmck
Stand Up, Show Up, Speak Up
03:18 AM on 06/01/2012
If so-called corporate persons can participate in elections, then shouldn't they also be allowed to run for office? Instead of Romney, maybe we ought to be voting directly for Bain Capital.

The whole notion is ridiculous. If this country lasts, future generations will be disgusted at how intellectually and morally impoverished we are.

Corporate personhood is a bigger and more detrimental scam than anything Al Capone ever pulled.
.
08:02 AM on 06/01/2012
"If so-called corporate persons can participate in elections, then shouldn't they also be allowed to run for office? Instead of Romney, maybe we ought to be voting directly for Bain Capital. "

Isn't that exactly what we are doing?
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HUFFPOST SUPER USER
omeo2013
Jesus says we should cut taxes for millionaires.
02:15 AM on 06/01/2012
As I've said before, someone needs to create a corporation and have that corporation do some things only a real person can, like marry someone or vote or run for president. When they're denied that right, the corporation should sue all the way to the Supreme Court and let THEM explain why it can't do those things.

Of course, I personally don't approve of corporate marriage. Open THAT door and the next thing ya know, you'll be able to marry a small business or even a kid with a lemonade stand. How'my 'spose to explain it to my children when they see a man walking down the street hand-in-hand with a corporation? What Mitt Romney does with his partners behind closed doors is HIS business, but the state does NOT have to sanction it. It just ain't Christian.
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Inkosi
The gods themselves rage against stupidity
10:22 AM on 06/01/2012
omeo2013 - thanks for the laugh. Very clever! fanned and faved. Oh, Mittens is Mormon so one corp could have multiple spouses!
11:23 AM on 06/01/2012
Corporations are not voting when all they are really doing is financing a campaign. Spending money where you don't have the votes is as meaningless as lame slogans like "Hope & Change".
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LoneTree
Liberty is more precious than life.
01:49 AM on 06/01/2012
Why do you suppose that corporations would be interested enough, and willing, to spend large sums of money to influence the government?
HUFFPOST PUNDIT
Helloise
Healthy skeptic admires reason, trusts intuition
08:06 PM on 06/01/2012
Because unlike us poor humans, they only have one priority, profits?
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LoneTree
Liberty is more precious than life.
11:34 PM on 06/01/2012
Why would their profits depend on the federal government, to the point that they're willing to spend major $$$ to influence, say for example, healthcare legislation?
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LoneTree
Liberty is more precious than life.
11:23 PM on 06/02/2012
"I certainly see your point, but it's so interconnected, where would you begin if you had your druthers?" - - - I don't have a good, clean answer. I understand that the government has legitimate functions, that it takes revenues for the government to perform those functions, and everything that follows from that. I only make the observation that as federal government expenditures have greatly increased in areas outside defense, that BigMoney has been drawn like flies to you know what.

Your point on mismanagement and corruption in school vouchers, etc is certainly a valid point. Only vaguely related: over the past 10 years or so, I've seen an explosion in the number of Americans who get around in public in "power chairs". I fully acknowledge that the disabled need mobility. In 3/4ths of the cases I see, the people are not disabled to the point they need a power chair, and would benefit greatly from the exercise of walking around instead of riding. Guess what? The government funds power chairs. How do we do that and provide power chairs to those who really need them, but without providing them to the vast number who don't ... and I'll bet the power chair industry has a lobbyist in DC.

Anyway, thanks for your time and patience, it's always good to hear from you.
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LoneTree
Liberty is more precious than life.
01:46 AM on 06/01/2012
Americans are acting like naive children on this issue. Political parties are "people". Civic organizations like the Kiwanis and Sierra Club are "people". Labor unions are "people". And corporations are "people". Corporate "personhood" has been a legal fact of life since the early 1800's.

Read, learn, become informed. Move on and deal with real issues.
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HUFFPOST SUPER USER
shamanbart
08:41 AM on 06/01/2012
One of the reasons a corporation is considered a person is to allow it to perform functions rather than have all of its members perform that function individually. Unfortunately, when it comes to donating money to political organizations, the flaw of this definition is that the CEO and board members may agree by majority to donate a large chunk of cash to a political org, but a large part of the "membership", i.e. employees, may be against such an expenditure. Funds that employees helped create are being used against their interests individually without their say.

It's time all the traditionalists rethink the consequences of corporate personhood (excessive political influence, environmental impact, lack of social responsiblity) and look at what functions a corporation really does and does not need to be able to perform.

Revoke corporate personhood in all 50 states! www.movetoamend.org
11:36 AM on 06/01/2012
Your argument also works for union political contributions and left-wing newspaper endorsements of candidates, all of which may not agree with the views of their members but to admit as much would put a chink in your attempt at intellectual dishonesty. Besides, a leftwing hack rag of a newspaper has more influence due to the fact that they can buy ink by the barrels. But we never hear the left complain about the favorable bias that they are given by these base propaganda outlets now do we?
HUFFPOST SUPER USER
John Kelley 1
10:40 AM on 06/01/2012
In every organization you mentioned with the exception of a business corporation, the membership of said organization has a say in how the organization is run. In a business, the employees do not hold that power, and the wealth generated by their labor can be dispensed without their consent.

Furthermore, business corporations have the power to generate more money and thus buy more influence in public affairs without any check on said actions than any other entity in our society.

Finally, keep in mind that the recent Supreme Court decision placed no limitation or restriction on foreign owned business corporations to contribute money to our nations political campaigns, and foreign entities have no civic stake in bettering our society. In fact, they have the opposite incentive to destabilize and undercut our nation if it suits their competitive global economic aspirations.

You may want to read a bit yourself and get a little more informed.
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LoneTree
Liberty is more precious than life.
06:35 PM on 06/01/2012
"In every organization you mentioned with the exception of a business corporation, the membership of said organization has a say in how the organization is run."

First, employees certainly do have a say in how businesses are run. It may not be the iron-fisted, boot-on-the-throat type of power we expect, but no business operates without being influenced by their employees. Second, you ignore the shareholders, and I would not be a shareholder in any corporation where I didn't, at the very least, get to vote for the Directors.

The creation of wealth occurs when something (raw material, time, whatever) is made more valuable through some sort of transformation. Iron ore to automobiles is the classic example. In the industrial realm, and increasingly in other areas, labor is no longer necessary to produce wealth. Machines do a much better job.

Foreign interest in and influence of our elections goes back to the earliest days of our Nation. Just as we return the favor when it's our turn. This is how the world works.

Having responded to your reply, I remain fairly satisfied with my positions.
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LoneTree
Liberty is more precious than life.
06:46 PM on 06/01/2012
And I forgot to ask:

"...the membership of said organization has a say in how the organization is run..." - - - You seem to imply that this is a good thing, or somehow desirable. If so, whatever makes you think THAT?

Our government has massive democracy, an even larger deficit and debt, and no hope of getting anything done. Corporations, with limited democracy, have massive surpluses and assets, and the ability to turn on a dime to fix problems. Lots of democracy = failure. Limited democracy = success. So I'm curious why you seem to be implying that greater membership control is better than lesser membership control?