Dano: Public Campaign Financing? It Doesn't Matter

(Note: Reed's post gives a succinct history of campaign finance in the U.S., so I'll not repeat it. I will also avoid repeating his citations for brevity, though I relied on some of them also.) 

Well, for a change, I got a coin-flip this week that threw me for a loop. I am supposed to argue that we should maintain the public campaign finance system for federal elections (and, perhaps, mandate its use). But, by golly, after my research, I decided that it doesn't make a lick of difference where the candidates get their "individual contributions." I guess that sounds confusing.

The term, "public financing," is a bit of a misnomer. The fact is that money provided by the government comes from individual taxpayers (private citizens) who decided to contribute $3.00 of their personal tax obligation to the campaign finance fund for presidential elections. Yes, this is a small amount from each donor, but it adds up (though, as of 2006, fewer than 10% of taxpayers contributed annually--more on this issue, later). Moreover, there is an element of private donations within the public finance system, because it only provides "matching funds" of up to $250 per private donation. "Private financing" simply means that individuals donate directly to candidates instead of doing so through their tax returns. The difference is that individuals can (and do) contribute considerably more, though also limited by law, through this direct-donation mechanism. Also by law, corporations are prohibited from donating directly to candidates under both systems.

Fundamentally, proponents of public campaign financing say that this system reduces the possibility of corruption (because the source of candidate funding is known in advance, and is above-board), and helps to minimize the relative advantage of having deeper coffers than other candidates, such that "buying an election" becomes less likely. Under this system, candidates are not permitted to use more than $50,000 of their own money for their campaigns (unlike the substantial personal financial input provided by previous candidates, Steve Forbes, Ross Perot, Mitt Romney, and Hillary Clinton, to name a few). Of concern to candidates of parties other than Democratic or Republican, public financing is not available to them.

Those who support private campaign financing suggest that it, alone, protects the constitutional right of (unlimited) free speech, and that this system is regulated sufficiently to guard against corruption. The system is said to be superior because each donor has the right to direct their support to a specific candidate (where no such ability exists with public finance funds), further protecting the rights of donors to not support a candidate they don't like. Moreover, there are no limits on how much can be amassed in the aggregate, so if a candidate enjoys support from a much larger proportion of the public than his/her opponents, then his advantage in advertising funds is proportionate and fair. Finally, any party's candidates can get this form of funding -- not just Democrats and Republicans.

So, why doesn't it matter which system we use?

Of minor relevance, there are some equalizing factors between the two systems. First, the advantages of private financing are mitigated by available funds through public financing: 1) public financing subsidizes the nomination conventions of those candidates that accept it (not an insubstantial cost), and 2) public financing pays for the costs of attorneys and other administrative costs (also nothing to sneeze at). But that's not the main issue.

A less obvious issue is that, while we all know that public financing, at least in the 2008 campaign, garnered Senator McCain only about half the money that was collected by President-elect Obama, this is a consequence of both systems being utilized. Remember, above I noted that income tax contributions to public financing were made by fewer than 10% of taxpayers in recent years. (http://www.usatoday.com/news/washington/2007-04-17-preztax_N.htm?csp=34)

 If, however, candidates were required to use public financing (or, more accurately, prohibited from using private financing), the percentage of citizens choosing to donate with their tax returns would likely rise precipitously.  So, while the free choice to accept private financing exists along with the public financing system, a candidate can choose either method and take his chances, but private financing seems to hold the advantage so long as it remains available. This, by itself, is no reason to mandate one or the other.

The overarching reason the system chosen doesn't matter is that they each deal with "hard money" contributions only. Both systems allow expenditures of "soft money" contributions through the activities of political action committees (PACs), and by organizations known as "527s" and "501(c)s." Taken together, these organizations spend unlimited donation monies to support issues (directly), and candidates (indirectly ). The only "free speech" limitation on these groups is that they cannot suggest voting for or against a particular candidate. They can (and do), however, say things like, "candidate A is the only patriotic contender," and "candidate B is clearly unpatriotic." The power of these groups to affect elections was well illustrated by the soft-money-funded "swift boat" campaign against Senator John Kerry in the 2004 presidential race -- many believe this advertising strategy cost Kerry the election. The Supreme Court has upheld the right of these groups to advertise in this way, and no legislation short of a Constitutional amendment can change this fact (see Buckley v. Valeo, 424 U.S. 1 [1976]). So, essentially, as long as PACs, 527s, and 501(c)s can operate with impunity, their impact on election outcomes is far more relevant than the direct ads by the candidates, regardless of the sources of their funding.

Some might argue that direct candidate ads have a great deal of impact on voters' choices. That may be true, but I submit that the number of ads, and the geographic spread of them, is not as important to campaigns as it once was because of the advent of 24 hour news networks that endlessly replay the campaign ads of the candidates during the entire course of the election cycle. Even though John McCain spent far less than Barack Obama, for instance, I saw every important political ad that McCain produced as many times as I saw Obama's ads (okay...maybe not quite as many times, but effectively so). The news pundits see these ads as free content, and this essentially gives every candidate free air time. Unfortunately, the news outlets also give free replay time to the ads from the PACs, 527s and 501(c)s. So, again, the power of soft money organizations remains superior. Until this changes (through FCC regulations on media or a Constitutional amendment limiting soft money free speech), there is simply no important difference between the public and private campaign finance systems.

Campaign finance is a very complicated issue, to be sure. But concerning ourselves with an either/or argument over public or private donations is, quite simply, a misdirected effort. Both systems are regulated to prevent corruption, with debatable success, perhaps. But campaign finance reform needs to concern itself primarily with soft money controls if we expect to level the playing field for all candidates and prevent corruption and influence peddling in presidential campaigns.

Reed: Presidential Candidates Don't Need Our Tax Money to Run a Campaign

Hello, folks, and welcome back to Butt and Rebutt. As you've noted, we have been somewhat out of the loop, but this week we're back with a vengeance, and our topic is, "Should public financing continue to be available to candidates for president?". Based on our coin toss, I will argue that public financing for national campaigns has outlived its usefulness if, indeed, it ever had any.

Our recent election brought this issue to the forefront in a surprising way. The Republican candidate, Senator McCain, opted to accept public funds, while the historically cash-strapped Democrats prodded Senator Obama to forego public funding. The Democratic strategy, fueled by Democratic National Committee chairman Howard Dean, proved to be an overwhelming obstacle to Sen. McCain's ability to compete for expensive media time, and many pundits are convinced that, once again, this election was won and lost on the ledgers, not at the ballot box.

Sen. McCain, however, had little choice but to opt for public money. He was, after all, the co-author of the famous (or infamous, depending on your point of view) McCain-Feingold Act, more properly known as the Bipartisan Campaign Reform Act of 2002. President Bush signed the act into law on March 27, 2002, making it the first meaningful revision to laws pertaining to public financing of elections since the first such measures began being administered by the Federal Elections Commission (FEC) in 1976 (see www.fec.gov/pages/bcra).

It is important to note that 1976 was not the year that this issue came to the forefront. In 1966, Congress passed legislation that would have provided public money to Presidential candidates by funneling funds through the political parties. According to the FEC, the law was suspended a year later, for obvious reasons (www.fec.gov/pages/brochures/pubfund). In fact, not even in 1966 were Americans first prodded to look at such a system. Fifty-nine years earlier, according to the FEC, Theodore Roosevelt proposed that public financing of national elections was the only means through which a fair result could be obtained.

Roosevelt's argument in 1907 was the same as that which resonates today - money, and I mean big money, perverts the political realm and insures that only the wealthy and well-heeled can attain high office. To the founding fathers, service was expected and personal gain was set aside. But by Roosevelt's time, special interests had already begun to pervert the process and political chicanery had become commonplace. Thus the argument was, and remains today, that public financing is the only way to assist a candidate with modest means to aspire to greatness in the political arena.

I don't buy it, no pun intended. I agree, as I assume the vast majority of our readers and Americans in general do, that money has indeed become a corrupting influence in the political realm. And the fact that Barack Obama raised more than half a billion dollars to compete for a job that pays $400,000.00 a year raises the simple question, "Why?"Our system has been co-opted by special interests, to be sure, and the money is the driving force. But it's relevant to note that, according to the New York Times and Fox News (organizations that don't often find themselves in agreement, editorially speaking), the average donation to the Obama campaign was less than $90.00.

The most money raised in any political campaign in history, and the average donor gave ninety bucks. Do the math. It's clear that, in spite of our cynicism and anger over how lobbyists, corporations, unions and radicals on the right and left have dominated the money grubbing and media hype, the common man and woman still care enough to fork over a few bucks to support a cause.That's democracy in action, the little person stepping up to help the candidate who best represents his or her values, beliefs and interests on the national level. But that citizen, passionate for a candidate or a cause, has no control over how the federal government doles out his or her tax dollars to presidential aspirants. In other words, your taxes may be going into the campaign coffers of a candidate you find totally repugnant.

I know I don't like that. I assume you don't either. But I also don't like the system the way it is, or was, where money drives politicians to say anything it takes to get elected, to crawl in bed with whatever special interest has the most umph, and then to claim high moral standards as a reason to earn my vote. So the idea of using tax-payer dollars to fund campaigns was based on noble ideals. But as so often happens in the political realm, the best intentions often produce the worst results.

This is a complicated issue on several fronts. Dating back to the 1970's, challenges to restrictions on fund raising and expenditures in political campaigns have hinged on the First Amendment's guarantee of free speech. In 1976, the U.S. Supreme Court issued a ruling in the case of Buckley v. Valeo which upheld the notion of restrictions on certain campaign fund raising as "primary weapons against the reality or appearance stemming from the dependence of candidates on large campaign contributions." However, in the very same ruling, the court recognized the validity of free-speech arguments, stating, "virtually every means of communicating ideas in today's mass society requires the expenditure of money." Restrictions on this form of free speech, the court said, could only be justified in the case of an overriding governmental interest (see http://www.campaignfinancesite.org/court/buckley.html.)

In this seemingly contradictory ruling, the court did not spell out what constitutes "overriding governmental interest," but the concern was balancing a group or individual's right to participate in the electoral process with the need to prevent graft and corruption within that process. I submit that this balance, and indeed all the concerns expressed in Buckley and cases brought subsequent to this ruling, can be addressed by common sense regulation of private sector contributions to candidates and parties.

I would accomplish this by instituting two major reforms to the current system which I believe would render public financing unnecessary. First, Congress should enact legislation that prevents a candidate for federal office from soliciting or accepting contributions for his or her campaign for a period of time equal to half the term of the office sought. In other words, a candidate for the office of president, which carries a four-year term, could not officially form a campaign committee or raise and spend outside contributions until two years prior to the general election. This is important because, while we prepare to inaugurate the man we elected this month to serve for the next four years, National Public Radio has reported that former Arkansas Governor Mike Huckabee is in Iowa, planning his strategy for a 2012 run for the presidency (All Things Considered, November 22.)

Nothing in the legislation would impede a potential future candidate such as Governor Huckabee from traveling around making speeches. It would, however, prevent political parties, corporations or wealthy individuals from contributing to a campaign fund in the candidate's name.

The second and equally important aspect of this reform would identify, once and for all, who may or may not contribute to national candidates and how much that candidate can lawfully raise. An individual's campaign would be allowed to raise no more than ten times the amount of the salary paid by the office aspired to during the course of one term. In other words, a candidate aspiring to attain the presidency, and its $400,000.00 annual salary, could raise and spend no more than $16 million. That money could be raised through donations from individuals not to exceed $2000.00, or corporations, unions, or parties not to exceed $50,000.00.

While these sums may seem paltry compared to the massive amounts of money currently spent on national campaigns, a shortened political season would mean less money would be necessary. Such a system as proposed would also serve to level the playing field for third-party candidates, or those with less name recognition.

There is one argument that public-finance proponents offer that would not be addressed under a system such as I propose. That is the notion that unheralded candidates with modest financial means and no name recognition could not compete. I would submit this argument is flawed for two reasons. One, it is false on its face. Raise your hand if you had ever heard of Ron Paul before the Republican debates first aired. Very few hands in the air. But the Texas Congressman set a single day financing record, raking in more that a million dollars over the Internet after his first debate performance.

Secondly, a young state senator from Illinois, from a very modest background and without a war chest, went from virtual unknown to President-elect in four years due to nothing more than his eloquence and perseverance. Proof positive that gifts of style and substance can overcome, at least in the short term, a lack of money or power.

In closing, I believe we can all agree that our political system, with its reliance on massive amounts of money and influence, is broken. The answer lies not in turning the system over to the government, or by completely deregulating the system. As is often the case when things are complicated beyond the capability of most citizens to understand, we should strive to simplify this system while relying on citizen participation, not taxpayer funding, to select our leaders.

Our Apologies...

We're sorry. We know we have been a tad lax lately at blogging. The truth is that our readership appeared to drop off pretty drastically after Dano's injury and the subsequent posting hiatus; maybe it was just a drop in participation. We are trying to get back into a regular schedule, now.

On that note, however, there is something we want to address: For this blog to be successful, we need for visitors to actually comment on our posts, not just read them. Why, you ask?  Because blog traffic for the purposes of 1) getting listed and spread by blog catalog services, 2) being noticed by news organizations who scan blog activity to locate bloggers of interest to highlight, and 3) appearing more relevant to education providers (whom we would like to appeal to so they will incorporate our blog in argument and persuasion curricula) is determined by the volume of comments by visitors, not just the number of site visitors.

We have been told by a number of non-commenting visitors that they enjoy reading our posts, but don't want to participate because they "feel unqualified" to comment. "I'm too stupid." "You guys are so serious." "I don't have the time or energy to research my own opinion." Etcetera.

For those of you that feel these ways, let us say this: We don't ask that everyone who comments first researches the issues presented. That's what we do. Those who do comment are only asked to give citations for any "factual" assertion made that is (or may be) debatable. This request is made for two reasons. First, we are trying to preclude the possibility that our blog project turns into a parade of opinion rants like so many blogs are. Second, research helps nearly everyone learn more about the issues than they knew already, which adds to the overall quality and value of the dialog between participants.

That said, there is nothing wrong with simply saying, "this is just my opinion, but...," or with simply writing "I enjoyed the post. It makes me think more about the subject."  We also welcome any valid criticisms of our site design, our posts, our skills, our logic, or our content. One of the great thrills of debate is the opportunity to defend or even modify one's opinion or point of view.

Those of you who have commented regularly are very much appreciated. We also appreciate those of you that visit regularly, but don't leave comments. It's just that we really wish you would. We'd love to be able to consider our efforts worthwhile in the final analysis.

One more thing...we are now going to accept guest post submissions from those of you that have a substantive and contentious point of view on a socially important issue, and wish to have your position discussed. Any submissions of this kind should be emailed to danojohns@aol.com for publishing consideration. In the event that one is selected for a weekly debate topic, either Dano or Reed will take a different point of view to foster the debate.

Finally, we owe another apology to those of you who have been expecting our posts on the previously advertised topic of government subsidized healthcare. It turns out that it was too consuming a topic for our modest time availability. So, despite that we think it is a great topic, we will not be tackling the subsidized healthcare issue at this time. This week's topic, instead, will regard U.S. campaign finance issues--the source of heated disagreement  between John McCain and Barack Obama during this year's presidential campaign. Our posts should be up in two or three days.