The American politics has systematic and radical transformation in the recent decades. With the increase in the number of groups that are interested in United States politics, the country’s legislative bodies have created various policies and guidelines to regulate the election and campaign process. The introduction of various policies and guidelines in American election system has played a critical role in shaping and influencing the campaign process and election outcome. Political Action Committees (PACs) and 527 groups are examples of the groups that play a vital role in influencing the United States campaign and election process. Therefore, the knowledge on the role and contribution of PACs and 527 groups in American elections will be vital in understanding the management and funding of the American politics.
Political Action Committee comprise of entities that pools campaign contribution from various outlets and use the attained resources to either supports or campaign against legislation, ballot initiative, or a candidate. An organisation qualifies to be a PAC when it spends or receives over $ 1000 in influencing any state or federal election. PACs are essentially recognised under the federal Election Campaign Act (Franz 57). The PACs have been very influential in shaping the outcome of the election and nomination exercise. In most instances, PAC supports a particular candidate in any election or nomination process. For instance, in 2012 presidential election, a good number of the United States PACs played a critical role in influencing the Republican primaries. PACs spent more money in supporting 2012’s republican candidate than the resources spend by all the party candidates.
Although the PACs have the power of determining the amount of resources to spend on specific candidate or party, the America law has some restriction on how these organisations should spend their resources. Based on the United States campaign regulations, individuals no any single person should contribute over $ 500 per year to any federal PAC. On the other hand, Unions and Cooperation are restricted from offering their direct contribution to federal PACs. Statistics indicate that the number of federal PAC is increasing at an encouraging rate (Krieger 213). Currently, there are over 1598 registered PACs in United States. Some of the commonly known PACs include American Association for Justice, International Association for Fire Fighters, Labourers International Union of North America, International Union of Operating Engineers, America Bank Association, and National Automobile Dealers Association.
Political analysts have attributed the increase in the number of American’s PACs to rise in the number of professionals who are interested in national and state politics. Currently, specific political parties at both the state and federal levels connect more that 460-registered PACs. Healthcare organisations, trade union groups and labour union entities own most of the newly established PACs. Furthermore, most of the resources used to run the United States PACs are collected from senior state officers who include shareholders of reputable organisations, managers, and senior business executives. As at 2009, there were over 1598 registered PACs. Among the registered PACs in America, 995 are related to trade organisations while 272 are linked to labour unions.
In reference to America regulations, political parties and elected officials are restricted from giving more than federal limits to individual political candidates. However, under the law, PACs have the power and authority of making independent expenditures. Specific PACs are also at liberty of supporting a specific political party or candidacies depending on the policies presented by the identified candidate. This is evident in the 2008 election where a good number of America PACs used huge resources in funding Republican candidates at all levels. The PACs also used more many than the resources that was used by Republican in supporting and in funding the presidential advertisement and promotion expense of the Republican presidential candidate (Corrado, Thomas , Daniel and Trevor 47).
Some political analysts also observed that the Restore Our Future PAC was created with a sole purpose of funding and supporting Mitt Romney campaigns to ascend into political power. Despite ensuring that the Republican presidential candidate was popular among America electorates, the Restore Our Future and Winning Our Future spent more than $ 40 million and $ 16 million respective in funding the party strategic team. Most of the resources owned by America PACs are also attained from American wealth professionals as opposed to America prominent businesses and corporations. Based on the data presented by Centre for Responsive Politics, a good number of the PAC donors in 2012 presidential election were prominent and wealthy individuals in American.
On the other hand, the 527 organisations and groups highlight the United States tax-exempt group under section 527 of the United States International Revenues Code. The 527 groups were established with a sole purpose of facilitating and shaping the election nomination and selection, and appointment of candidates at local public office, state offices or federal offices (Corrado 123). The America 527s emerged and became effective after Supreme Court decision of legalising the entities. In its ruling, the Supreme Court also draw limit in which campaigns finance regulations can control politic speeches. Some of the legally recognised 527s in America include Secretary of State Project (SSP), Swift Boat Veterans for Truth (SBVT), Texans for Truth, and America Coming Together (ACT) among others (Ackerman and Ian 20).
The 527s are in most cases included in the political committees at federal local and state level. In reference to United States regulations, there are no limits on 527 contributions to individual politicians and parties. The state also limits the spending that a 527 can make on any election campaign. For example, in the 2004 elections, the Swift Boat spent huge resources in funding the campaign for Democratic Party presidential candidate John Kerry. As opposed to PACs who works directly with the candidate, the 527 groups do not donate or work directly with the candidate. The act of working indirectly with the candidate enables 527 groups to operate and work with limited influence from FEC.
Although the 527 groups are allowed to get resources from various individuals and groups, these organisations are largely encouraged to get a good number of their resources from American citizens. For instance, in 2008 general election, the American 527 contribution limit was $ 28,500 for national party in one year and a total of $ 2,300 from one person to a single candidate. Based on the America election and campaign regulations, the contribution of 527 groups to individual candidates and national parties are determined by the rate of financial inflation in the country (Ackerman and Ian 17). For instance, compared to the 2004 presidential election campaigns, the 527 groups had higher contribution to Democratic Party presidential candidate in 2008 campaigns.
In accordance to the America election regulations and guidelines, foreign nationals are highly prohibited from making their contribution into the existing 527 groups and organisations. Foreign nationals are also prohibited from spending their resources in any election and campaign process in United States of America. However, under the United States law, green card holders are not regarded as foreign nationals. As a result, these individuals are not allowed to make their contribution to 527 groups. In 20008 presidential campaigns, the green card holders contributed over 2% of the total contribution to the American 527 groups to fund the Democratic Party presidential candidate.
In reference to the United States election and campaigns regulations, 527 groups are discouraged from engaging in active politics. Instead, they are only allowed to fund indirectly campaign process such as funding for advertisements, creation of brochures, and engaging in any form of advisory activities. For example, in 2008, the American 527 groups spend over $ 171, 045,165 in funding the advertisement of the two presidential candidates. About $ 49, 379,578 of this amount funded the Republican Party presidential candidate while $121, 665, 587 financed the Democratic Party presidential candidate (Janda, Berry, and Goldman 308).
It is factual to conclude that existing organisations and groups play a major role in shaping and influencing America politics at all levels. Besides developing the image of any political candidates and party, PACs and 527 groups are critical players in funding the entire political and campaign processes. A good number of the American business executive and professionals also uses the existing political groups in funding and supporting the candidates of their choice. Although both PACs and 527 are influential in America politics, the existing regulations need critical amendments to regulate the amount of money that are spent on an individual candidate in one political period. The regulation of the campaign resources will be useful in reducing unnecessary resources wastage, which is essential in checking high inflation rate prompted by campaign activities.
Work Cited
Ackerman, Bruce and Ian Ayres. Voting With Dollars: A New Paradigm for Campaign Finance. New Haven: Yale University Press. 2012. Print.
Corrado, Anthony, Thomas Mann, Daniel Ortiz, and Trevor Potter. The New Campaign Finance Sourcebook. Washington, D.C.: Brookings Institution Press. Print.
Corrado, Anthony. Money and Politics:A History of Campaign FinanceLaw,” in Anthony Corrado, Thomas Mann, Daniel Ortiz, and Trevor Potter (eds). The New Campaign Finance Sourcebook. Washington, D.C: Brookings Institution Press. 2005. Print.
Franz, Michael. Choices and Changes: Interest Groups in the Electoral Process. Philadelphia, PA: Temple University Press. 2008. Print.
Janda, Kenneth, Berry Jeffrey and Goldman, Jerry. The Challenge of Democracy: American Government in a Global World (10 ed.). Boston: Cengage Learning. 2008. Print.
Krieger Joel. The Oxford Companion to the Politics of the World. Oxford: Oxford University Press. 2012. Print.
