In the 2012 US election, Sheldon Adelson, a billionaire casino owner, donated $92.8 million in support of the Republican Party. This was despite campaign finance regulations setting maximum donation limits of $5,000 to candidates and $15,000 to political parties. These laws are intended to promote a fair election. They make it more likely that rival candidates will spend similar amounts of money on their campaigns and they should restrict the influence of major donors. How then was Adelson’s extraordinary expenditure possible? The answer is Super PACs.
Campaign finance laws in the USA require any organisation (such as a pressure group or business) to set up a political action committee (PAC), if it wants to donate money to a candidate. Maximum donation limits are placed on all PACs. However, the Supreme Court ruled in 2008 (Citizens United v FEC) and 2010, that the 1st Amendment forbids a limit on advertising expenditure during elections, if money is not donated directly to a candidate.
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