Republican Party Challenges Constitutionality of Anti-Corruption Corporate Contribution Ban; Seeks Ability to Receive Corporate Contributions Totaling $1,184,800 Per Corporation Per Election Cycle to Use in Federal Elections

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Statement of Democracy 21 President Fred Wertheimer

The Republican National Committee filed an amicus brief today in the Fourth Circuit Court of Appeals in the case of U.S. v. Danielczyk, which challenges the ban on corporate contributions to federal candidates.  The RNC brief argues that the court should conclude the ban on corporate contributions is unconstitutional.

In doing so, the RNC is attacking one of the oldest and most important anti-corruption laws in America. This is an extraordinary position for the RNC to take and would eliminate a ban on corporate contributions that was enacted in 1907 to prevent government corruption in the wake of the Robber Baron era.

To understand what the direct benefit would be to the Republican Party if it succeeded, the Republican Party would be able to receive contributions in a two-year election cycle of more than $1 million from any corporation in America.

This is because the aggregate limit on the total contributions that can be made to all candidates and parties applies only to contributions made by individuals, not by other entities.  Thus, unlike individuals, corporate donors under existing law would not be limited by any aggregate limit on their total contributions to party committees and candidates.

Under current contribution limits, a single corporation could contribute $61,600 to each of the three national Republican party committees in a two-year cycle, or a total of $184,800.   The same corporation could contribute $20,000 to each of the 50 Republican state parties in a two-year cycle, or a total of $1 million dollars.  All of this money could be raised by and transferred to the RNC since there are no limits on  transfers among party committees. The overall total that could go to the RNC is $1,184,800 per corporation per election cycle.

The RNC brief filed today is an effort  to take us back to the Robber Baron era and at the same time to open the door to the RNC receiving million dollar contributions from as many corporations as are interested in buying influence with them.

Democracy 21 and the Campaign Legal Center have filed an amicus brief in the Danielczyk case in support of the corporate contribution ban.