WHY WE NEED CAMPAIGN FINANCE REFORM..........Oct. 18, 2000, 11:25PM
Businesses feel strains of political 'shakedown'
By KAREN MASTERSON
Copyright 2000 Houston Chronicle Washington Bureau
WASHINGTON -- Business executives are being tapped for record amounts of money to support political campaigns and are tired of what one calls the "shakedown" by candidates and their parties, according to two studies released Wednesday.
Nearly $256 million has been raised in so-called soft money -- unlimited contributions from corporations, unions and wealthy individuals to political action committees.
That figure is five times the amount of soft money raised in the presidential election year of 1992, according to the Federal Election Commission.
A poll of businesses released Wednesday shows that the pressure put on corporate executives to make large contributions is creating a backlash that could lead to reform next year in Congress.
The study reveals that 75 percent of corporate heads feel pressure to give; half said they fear repercussions if they turn down requests for money; and, consequently, 60 percent support a ban on soft money.
Overall contributions -- for spending on both campaigns and issue ads -- have surpassed those made during the 1996 campaigns for president, the House and the Senate by $430 million. This election cycle's total, now at $1.6 billion, reflects contributions made in the 18 months leading up to June 30.
Those against the influence of money on politics worry most that much more is to come. Their estimates put total campaign contributions up to $3 billion -- more than the total budget of many small countries -- once the remaining months of this year are accounted for.
"Even before this election season began, we knew that the 2000 election was going to be one for the record books," said Larry Makinson, executive director of Center for Responsive Politics, a nonprofit group that watches campaign contributions and their influence on policy.
A lot is at stake this year, including the White House and control of the House, where Republicans hold a narrow majority. Democrats also hope to recover at least a few seats in the Senate.
The center's analysis of FEC records shows that the computer industry leaped from a rank of 55 in campaign giving in 1990 to eighth place this year, providing $25 million in nearly equal amounts to Democrats and Republicans.
"By splitting their money, the industry has gotten just about everything it's asked for from Congress," Makinson said. Among those requests are a moratorium on an Internet sales tax and an increase in immigration visas for high-tech job applicants.
Efforts to ban soft money have been made on Capitol Hill, but have gone nowhere. And the two presidential candidates who made a soft-money ban central to their campaigns -- Sen. John McCain, R-Ariz., and former Sen. Bill Bradley, D-N.J. -- lost their primary election bids.
Advocates of a total ban hope the business survey means executives are ready to act against the status quo.
"I remember $5,000 and $10,000 contributions in soft money," said Harry Freeman, a former executive vice president of American Express Co., a position he held until 1990. Now he said executives are asked for $100,000 and $200,000.
And some executives see the practice as anti-competitive, Freeman said, because significant resources are going into political campaigns instead of being reinvested in a company's ability to compete in the marketplace.
"Some are fascinated by politicians and think it's a big ideological thing to contribute. But the poll shows most people see it as a shakedown," said Freeman, who is currently a trustee of the Committee for Economic Development, a pro-business public policy institute that favors campaign finance overhaul and is supported by officials at Hasbro, Genesco, PP&L Inc. and other companies.
The center commissioned the business survey, which included a random sample of 300 corporate executives.
Soft money allows politicians and political committees to ask for huge sums of money, way beyond the limits placed on so-called hard money, which is capped and controlled by the Federal Election Commission.
Because of soft money, "the message to donors is forget the limits," Makinson said Wednesday at a Center for Responsive Politics news conference.
He said the ballooning of campaign contributions is backed by a recent federal court order that found the FEC limits on issue-ad spending were applicable if the advertisement blatantly promoted one candidate and included the term "vote for ... "
But Makinson said only 3 percent of television ads fall into that narrowly defined category. This is a "messy area" that Congress sooner or later will have to deal with, he said.
Both hard and soft money raised for the presidential campaign, including individual and party contributions, is up 45 percent, from $230.9 million in 1996 to $335.1 million in 2000. Congressional campaign contributions have increased 45 percent in the same time period, from $271.8 million to $393 million. And Senate campaigns have gone up 64 percent, from $158 million to $259.7 million, mainly because of hugely expensive races in New York and New Jersey.
Texans alone gave more than $71 million in campaign contributions, with 73 percent going to Republicans. Texas ranks fourth in campaign contributions, behind California, New York and the District of Columbia, according to the center's analysis.
Among those to make the center's list of top 50 individual donors is Houstonian Kenneth Lay, who runs Enron and is a longtime supporter and family friend of former President George Bush. He gave more than $361,000, almost exclusively to Republicans.
Sam Wyly, another Texan, gave Republicans more than $327,000. He is an investor who ran a special interest group that criticized McCain during the primaries.
Two Texas congressmen raised among the largest pools of money for use in boosting other candidates' campaigns. House Majority Whip Tom DeLay, R-Sugar Land, distributed $640,462. House Majority Leader Dick Armey,R-Irving, gave away $521,099, according to the Center for Responsive Politics. |
