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    1Running head: CORPORATIONS SHOULD HAVE THE SAME RIGHTS AS INDIVIDUALSTO FUND AND ENGAGE IN POLITICAL SPEECH: CITIZENS UNITED V. FEC

    Corporations Should Have the Same Rights as

    Individuals to Fund and Engage in Political Speech: Citizens United V. FEC

    Kevin MulcaheyBUS200-05

    Professor Monseau11/13/11

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    3CORPORATIONS SHOULD HAVE THE SAME RIGHTS AS INDIVIDUALS TO FUNDAND ENGAGE IN POLITICAL SPEECH: CITIZENS UNITED V. FEC

    cable video-on-demand. The FEC had two main reasons for cracking down on Citizens United.

    First, Citizens United used general corporate treasury funds that were donated from for-profit

    corporations, which is barred by the BCRA. Citizens United could have avoided this stipulation

    by using a Political Action Committee treasury (PAC) for the funding of its film, which is legal

    under the BCRA. Secondly, Citizens United aired what the FEC considered to be an

    electioneering communication, which is any cable, broadcast, or satellite communication, within

    30 to 60 days of a primary or election. This was also illegal under BCRA. The Supreme Court

    ruled most of BCRA unconstitutional on the basis that corporations could not be limited from

    the, funding of independent political broadcasts in candidate elections, under the First

    Amendment (oyez citizens).

    Citizens United v. FECwas hardly the first Supreme Court case that sought to resolve the

    issue over campaign finance reform. By ruling in favor of Citizens United in 2010, the Supreme

    Court overturned decades of case law. Republican Senator Mitch McConnell of Kentucky said

    that the BCRA, disparage[s] governing Supreme Court case law (Jost 2002). In his defense,

    the Supreme Court stated in the 1976 case ofBuckley v. Valeo that political speech and political

    spending were so closely related that First Amendment rights must be considered (Witt).

    Furthermore, as Justice Kennedy mentioned in his majority opinion of the Citizens United case,

    it is unlawful for the government to restrict, the freedom to think for ourselves, and if the First

    Amendment is ever violated in this manner, legislation must be overturned. However, the idea

    that previous case law has given corporations the freedom to support or oppose any candidate

    with any type of funding is false.

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    4CORPORATIONS SHOULD HAVE THE SAME RIGHTS AS INDIVIDUALS TO FUNDAND ENGAGE IN POLITICAL SPEECH: CITIZENS UNITED V. FEC

    Despite finding money and speech related inBuckley v. Valeo, the Supreme Court chose

    to restrict the ways in which corporations could contribute. It decided that, limitations of the

    FECA enhance the integrity of our system of representative democracy (Oyez Buckley).

    Regardless of whether or not a corporation is corrupt, restricting corporate campaign financing

    prevents disillusionment with the electoral process. Again, in the 1989 decision ofAustin v.

    Michigan State Chamber of Commerce, the Supreme Court ruled that corporations could not use

    general treasury funds supplied by for-profit corporations to finance campaigns. Its ruling sought

    to dispel corruption or perceived corruption witnessed by voters. Clearly, the Supreme Court has

    had a history of restricting some corporate speech to protect our political process.

    In the 2002 case ofMcConnell v. FEC, with Senator McConnell as the plaintiff, the

    Supreme Court again ruled in favor of restricting corporate campaign finance. The BCRA sought

    to restrict soft-money, or implicit advocacy of politicians through corporate funding, and the

    court found that this was constitutional. In the majority opinion, OConnor and Stevens reasoned

    that express advocacy of a candidate would deem more First Amendment protection, because it

    reflects direct political views. Soft-money corporate contributions attempt to circumvent the law

    through vaguenessbecause "money, like water, will always find an outlet, as stated by Justice

    OConnor (oyez mcconnell).To the contrary of McConnells assertion that the Supreme Court

    has definitively protected corporate speech, case law appears to be in favor of restricting the role

    of corporations in campaign funding.

    Another argument posed by experts who oppose restrictions on corporate campaign

    financing is that real political speech is not possible without money. As Sean Parnell of the

    Center of Competitive Politics states, Limiting money spent on politics infringes on the First

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    5CORPORATIONS SHOULD HAVE THE SAME RIGHTS AS INDIVIDUALS TO FUNDAND ENGAGE IN POLITICAL SPEECH: CITIZENS UNITED V. FEC

    Amendment because effective political speech requires money. This principle applies whether a

    citizen-activist copies a flyer for distribution, a candidate purchases radio ads or an interest group

    reserves TV time to promote its agenda (Jost). Jay Mandel, an economics professor at Colgate

    University also argues that other means of campaign funding such as public financing are,

    underfunded as elections, have become much more expensive (Billitteri). Evidence given by

    justices and other experts will prove that corporate spending is not completely restricted, and that

    public financing is more relevant than the opposition asserts.

    Rather than prohibiting corporate political speech entirely, campaign finance law mostly

    focuses on the types of funds and the time frame in which they are used. Citizens United was

    confronted by the FEC because they chose to fund the film Hilary from general treasury funds

    that were formed by for-profit corporate funds. Had Citizens United taken funds from its PAC

    treasury or a separate political treasury, there would not have been a contribution issue. Justice

    Stevens, upon reviewing previous case law, believes that, the ability to form political action

    committees provides corporations with a constitutionally sufficient opportunity to finance

    electioneering (oyez citizens). Also, as the term electioneering communication stipulates in the

    Bipartisan Campaign Reform Act, other mediums can be used for speech. The internet, for

    example, does not count as an electioneering communication (oyez stevens dissent). The time

    frame in which corporations can spend their money toward speech is quite lenient as well. As

    long as the ad is not within 30 to 60 days of an election, depending on what kind, the ad will be

    allowed regardless of the type of funding. Therefore, there is more evidence that the restriction

    placed upon free speech is much narrower than opposing lawmakers like McConnell assert.

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    6CORPORATIONS SHOULD HAVE THE SAME RIGHTS AS INDIVIDUALS TO FUNDAND ENGAGE IN POLITICAL SPEECH: CITIZENS UNITED V. FEC

    Public financing is another option that does not limit political discussion. When a

    politician opts for public financing, the government supplies the candidate an initial sum, and

    then matching funds for the amount of private contributions their opponent receives (oyez

    Arizona). The Supreme Court found in 1976 that public financing is an effort not to, censor

    speech, but rather to use public money to facilitate and enlarge public discussion and

    participation in the electoral process (jost). Thus, candidates that have less funding from special

    interest corporations have an even playing field during an election to inform the electorate of

    their platforms (cooper 2000). Under current provisions, politicians can choose to deny publicly

    financed contributions in favor of private money, which is what makes matching schemes so

    expensive (cooper 2000). Additionally, the idea that public financing is underfunded, as stated

    earlier by Mandel, is contradicted by the $67.5 million Bush and Gore received in public

    financing during the 2000 election (cooper 2000).

    A final assertion made by opposing experts, as well as the majority decision in Citizens

    United v. FEC, is that corporations have the same rights as human beings (Oyez citizens).

    Senator Mitch McConnell states in another CQ Researcher review that, soft money, issue

    advocacy, express advocacy, PACs and all the rest are nothing more than euphemisms for First

    Amendment-protected, political-speech-and-association means of amplifying one's voice in this

    vast nation of 270 million people (cooper 2000). It is assumed by restricting corporate

    campaign financing that businesses want to corrupt officeholders, when corporations are

    donating because they simply want voice their First Amendment rights for better government

    (jost 2010). The dissenting opinion of the Citizens United case directly refutes these claims by

    stating that corporations do not receive the same First Amendment guarantees as people.

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    7CORPORATIONS SHOULD HAVE THE SAME RIGHTS AS INDIVIDUALS TO FUNDAND ENGAGE IN POLITICAL SPEECH: CITIZENS UNITED V. FEC

    Justice John Paul Stevens states in his dissent that, the distinction between corporate and

    human speakers is significant (oyez citizens). There are a number of reasons why corporations

    should not be viewed as people in the electoral process. According to Stevens, the interests of

    eligible voters may conflict directly with the interests of non-resident corporations (oyez

    citizens). Because corporations are organized with the goal of maximizing shareholder value,

    corporations must engage in the electoral process with their shareholders in mind, which

    undermines our political process (oyez citizens). An individual human being does not have to

    appease shareholders, and votes for the candidate who will benefit society the most.

    Furthermore, voters believe that they have less of a voice in the political process when

    corporations can spend unlimited amounts of money toward a particular candidate. When

    corruption is perceived by the voter, they may decide that voting is meaningless (mccain Jost

    02). Acts like the BCRA assure voters, that unregulated contributions [will not] pose a serious

    threat to our democracy (jost mccain 02).

    Another point that Stevens makes is that the First Amendment can be partially restricted

    based on the speaker or institution when there is a, legitimate governmental interest (oyez

    citizens). Students, members of the armed forces, and government employees are routinely

    restricted from absolute free speech (oyez citizens). The First Amendment does not absolutely

    guarantee speech free of any regulation (oyez citizens). In fact, a danger that is associated with

    allowing a corporation completely unrestricted and unregulated free speech is that not all

    corporations that influence our political process are American (oyez citizens). Multinational

    corporations would have the same rights to political speech as individual American citizens

    according to the majority opinion ofCitizens United v. FEC(oyez citizens). Although it is

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    8CORPORATIONS SHOULD HAVE THE SAME RIGHTS AS INDIVIDUALS TO FUNDAND ENGAGE IN POLITICAL SPEECH: CITIZENS UNITED V. FEC

    slightly more obvious, it is a pertinent example of why corporations are very different from

    human beings and have vested interests at heart (oyez citizens).

    The decisionin Citizens United v. FECshocked and outraged a majority of citizens,

    regardless of their political affiliation (jost). General sentiment by the public against the decision

    ofCitizens United v. FECproves a general consensus among the public that corporations are not

    human beings, and do not have the same rights to political speech (jost). Voters believe that they

    have less of a voice in the political process when corporations can spend unlimited amounts of

    money toward a particular candidate. Because corporations have shareholder and profit goals in

    mind, regulation is necessary to curb vested interests from outweighing the voice of constituents.

    Additionally, decades of case law and statutes dating back to the 1970s and 1980s have

    generally accepted the idea that placing contribution limits on corporations does not unduly

    restrict First Amendment rights. Generally, campaign finance reform, such as the BCRA, does

    not restrict the message of political speech, but rather how it is funded. Campaign finance reform

    holds a rightful place in U.S. legislation in order to protect the sanctity of our democracy, and

    does not place the heavy burden on corporate speech that some experts believe.

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    11CORPORATIONS SHOULD HAVE THE SAME RIGHTS AS INDIVIDUALS TO FUNDAND ENGAGE IN POLITICAL SPEECH: CITIZENS UNITED V. FEC

    Works Cited

    Jost, K. (2010, May 28). Campaign finance debates. CQ Researcher, 20, 457-480. Retrieved

    from http://library.cqpress.com/cqresearcher/

    Witt, E. (1985). The Modern First Amendment.Editorial research reports 1985 (Vol. I).

    Washington, DC: CQ Press. Retrieved from

    http://library.cqpress.com/cqresearcher/cqresrre1985010400

    Jost, K. (2002, November 22). Campaign finance showdown. CQ Researcher, 12, 969-992.

    Retrieved from http://library.cqpress.com/cqresearcher/

    AUSTIN v. MICHIGAN CHAMBER OF COMMERCE. The Oyez Project at IIT Chicago-KentCollege of Law. 10 November 2011. .

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    12CORPORATIONS SHOULD HAVE THE SAME RIGHTS AS INDIVIDUALS TO FUNDAND ENGAGE IN POLITICAL SPEECH: CITIZENS UNITED V. FEC

    MCCONNELL v. FEDERAL ELECTION COMMISSION. The Oyez Project at IIT Chicago-KentCollege of Law. 12 November 2011. .

    Billitteri, T. J. (2008, June 13). Campaign finance reform. CQ Researcher, 18, 505-528.

    Retrieved from http://library.cqpress.com/cqresearcher/

    Cooper, M. H. (2000, March 31). Campaign finance reform. CQ Researcher, 10, 257-280.

    Retrieved from http://library.cqpress.com/cqresearcher/

    CITIZENS UNITED v. FEDERAL ELECTION COMMISSION. The Oyez Project at IIT Chicago-

    Kent College of Law. 15 November 2011. .