For at least 44 years, it has been illegal for foreign corporations, countries and individuals to make political contributions in the United States for any election, directly or indirectly.
It is even against the law to solicit such contributions. But in this Wild West year of political money, that longstanding ban is being set aside. The U.S. Chamber of Commerce — one of the biggest advertisers in midterm races around the country — is actively soliciting foreign money, and government enforcers seem to be doing nothing to stop it.
According to a report issued Tuesday by the Center for American Progress, a liberal policy group in Washington, the chamber is getting “dues” payments of tens of thousands of dollars from foreign companies in countries such as Bahrain, India and Egypt, then mingling the money with its fund to advocate for or against candidates in the midterm races.
The chamber firmly denies the charge, saying its internal accounting rules prevent foreign money from being used for political purposes. Money, however, is fungible, and it is impossible for an outsider to know whether the group is following its rules.
The chamber has vowed to spend more than $75 million before the November election, and it has run 8,000 ads. The ads do not urge a vote for or against a specific candidate, but when they accuse Sen. Barbara Boxer of California of “destroying jobs” or call Richard Blumenthal of Connecticut “the worst attorney general in the nation,” no one can mistake the intent.
Because the U.S. Chamber is organized as a 501(c)(6) business league under the federal tax code, it does not have to disclose its donors, so the full extent of foreign influence on its political agenda is unknown. But Tuesday”s report sheds light on how it raises money abroad. Its affiliate in Abu Dhabi, the American Chamber of Commerce, says it has more than 450 corporate and individual members in the United Arab Emirates who pay as much as $8,500 a year to join.
Because of a series of court decisions that culminated in the Supreme Court”s Citizens United ruling earlier this year, these and similar nonprofits have become huge players in the year”s election, using unlimited money from donors who have no fear of disclosure. One group, American Crossroads, organized by Karl Rove, announced Tuesday a $4.2million ad buy to support Republican candidates, bringing the group”s total spending to about $18million.
The possible commingling of secret foreign money into these groups raises questions about whether they are violating the letter and spirit of the campaign finance laws. The Internal Revenue Service and the Federal Election Commission, which has been rendered toothless by its Republican members, should be investigating possible outright violations of the Federal Election Campaign Act by foreign companies and the chamber.
The government needs to make sure the tax code — and American control of American elections — is not being violated.
— New York Times editorial