Citizens United Flip Might Not Matter Much

By Tim Peckinpaugh; Steve Roberts | Roll Call, June 13, 2012 | Go to article overview

Citizens United Flip Might Not Matter Much


Tim Peckinpaugh; Steve Roberts, Roll Call


In the coming months, the Supreme Court may take up the issue of whether a Montana law prohibiting corporate independent expenditures is constitutional. In other words, Citizens United redux.

The Supreme Court has already issued a stay of a Montana high court decision upholding that law, but even if it took this opportunity to reverse its limited holding in Citizens United, it will not likely have much effect because in this cycle individuals - - not corporations -- are the ones bankrolling the super PACs making the biggest splash.

Remember what Citizens United actually decided. The court held that independent expenditures, by definition, "do not give rise to corruption or the appearance of corruption," and therefore, under the First Amendment, may not be limited -- even when made by a corporation.

But Citizens United did not create any new political speech rights for individuals, nor did it create the super PAC model through which individuals and corporations can pool contributions of unlimited amounts to be used for independent expenditures. A series of other decisions in an appellate court and the Federal Election Commission created that system.

Should the Supreme Court take up that Montana case, it could narrowly find that independent expenditures by a corporation suggest the appearance of corruption in a way that independent expenditures by an individual do not. And in that case, the narrow holding of Citizens United as it applies to corporations would be overturned.

And if it does, so what?

Super PACs could still exist but would only be able to accept individual contributions. And a campaign finance system without corporate money funding independent expenditures would not represent much of a change from what is already happening in practice. Independent analyses of FEC reports show that more than 80 percent of all super PAC contributions are coming from individuals rather than for-profit corporations.

Many corporate boards, rightly afraid of alienating a large segment of their customer base, are choosing to avoid using their corporate resources in publicly disclosed contributions to super PACs. One analysis shows that public companies have contributed less than 1 percent of all funds to the super PACs supporting Republican presidential candidates in this election cycle (through the first quarter of 2012).

Some boards of large, publicly held companies are increasingly establishing internal policies against making corporate political contributions of any kind, including to super PACs. …

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