Last week, the 4th Circuit Court of Appeals affirmed the
constitutionality of a federal law making it illegal for
corporations to make direct contributions to political
candidates. The decision was a rare bit of good news for
campaign finance reformers, whose hopes that the Supreme Court
would reconsider giving a green light to indirect corporate
campaign spending in Citizens United v. Federal Election Commission were dashed when the justices struck down a Montana
law that restricted corporate political expenditures.
The 4th Circuit case -- which involves criminal charges
against two supporters of Hillary Clinton's who have been
accused of funneling $186,000 in corporate funds to her 2006
Senate race and 2008 presidential campaign -- may be the next
corporate campaign finance challenge to reach the Supreme Court.
If it does, research by two academics who have studied the
effect of corporate contributions on the public's perception of
government could play a significant role in the outcome. In its
opening brief at the 4th Circuit in the prosecution of William
Danielczyk and Eugene Biagi, the government cited research to
support its conclusion that corporate contributions "heighten
public perceptions that government is corrupt." But the authors
of the research, political science professor David Primo of the
University of Rochester and economics professor Jeffrey Milyo of
the University of Missouri at Columbia, disagree. In a brief of their own, they argued the evidence shows that "campaign finance
laws have little to no effect on public perceptions of
government."
It's not an academic point. To uphold the ban on direct
contributions by corporations, courts historically have relied
on the government's interest in preventing actual and perceived
corruption. But in an interview with Reuters, Primo said that
those justifications can no longer hold up to scrutiny.
Corporations can already give to campaigns through political
action committees, he said, which makes it harder to justify the
ban on direct contributions as a way to prevent the perception
of corruption.
"That just doesn't hold water," Primo said.
He added that there's scant evidence to show that allowing a
corporation to give directly to federal candidates under the
same limits imposed on individuals would increase actual
corruption.
"I think it's possible that the Supreme Court could use the
Danielczyk case as an opportunity to weigh in the legality of
that ban," said Primo. "I think that's what makes the case so
powerful."
(Reporting by Andrew Longstreth)
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