The Chamber's Foreign Influence

B Faiz Shakir, Benjamin Armbruster, George Zornick, Zaid Jilani, Alex Seitz-Wald, and Tanya Somanader
ThinkProgress
October 6, 2010

CORPORATE ETHICS

Following the Supreme Court's Citizens United decision in January, the right-wing U.S. Chamber of Commerce has taken record-breaking steps to influence the 2010 midterm elections. Pledging to spend an unprecedented $75 million this year, the Chamber is in the midst of launching one of the largest partisan attack campaigns to defeat Democrats, including candidates like Jack Conway (KY), Sen. Barbara Boxer (CA), Jerry Brown (CA), Rep. Joe Sestak (PA) and  Rep. Tom Perriello (VA). Having aired more than 8,000 campaign ads on behalf of GOP Senate candidates alone and having spent 85 percent of its current expenditure on Republicans, the Chamber's spending has "dwarfed every other issue group and most political party candidate committee spending."

It is well-established that the Chamber has used dues from corporations like health insurance giant Aetna to try to defeat health care reform, received contributions from bailed-out banks to lobby against Wall Street reform, and solicited funds from Fox News' parent company News Corporation for its election season attack campaign.

But a new ThinkProgress investigation reveals that the Chamber is leveraging foreign companies to help fund its activities. Foreign corporations that join the Chamber pay dues that go into the Chamber's general account, which the Chamber then employs to fund its attack campaign. The Chamber "firmly denies the charge, saying its internal accounting rules prevent any foreign money from being used for political purposes."


But, as a New York Times editorial notes today, foreign money is fungible, so "it is impossible for an outsider to know whether the group is following its rules." "We want to know what the system is. Basically, they claim they have a system, it's not enough to simply trust them, we need to verify," said ThinkProgress' Editor-in-Chief Faiz Shakir on MSNBC's Hardball with Chris Matthews yesterday. While Congressional members and watchdog groups are calling for further investigation into the charges, such campaign actions fall into "something of a regulatory netherworld" leading campaign finance watchdogs, lawyers, and current and former federal officials to believe regulatory agencies like the IRS or the FEC will not examine them closely. Thus, with the Citizens United ruling and the Chamber's abuse of its 501(c)(6) standing, the Chamber is set to use "unlimited money from donors who have no fear of disclosure."


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