Making Sense with Democratic Dollars: How Congress Can Use the Disclose Act to Incentive Small Donor Participation After Citizens United by Jessica Emily Schumer :: SSRN

Making Sense with Democratic Dollars: How Congress Can Use the Disclose Act to Incentive Small Donor Participation After Citizens United

39 Pages Posted: 4 May 2010

Date Written: May 3, 2010

Abstract

In this paper I argue that the Congressional response to Citizens United - the DISCLOSE Act - presents an opportunity to do more than just play defense; if modified just slightly the DISCLOSE Act can be a powerful offensive tool. One small change in the bill would start encouraging smaller donor participation by providing incentives to all non-profit groups that voluntarily agree to contribution limits to their Campaign-Related Activity Accounts. I first lay out what I see as the money in politics problem. I then discuss the effects of the Citizens United ruling on the current landscape and how the DISCLOSE Act aims to mitigate them. I propose a change in the DISCLOSE Act that would keep the small donor trend alive by providing incentives for all non-profit groups such as unions, advocacy groups, and trade organizations, to voluntarily limit their contributions. These incentives would be bundled together and labeled “democratic dollars.” I explain how this label will provide a powerful heuristic in helping voters sort through the cacophony of electioneering communications that flood the airwaves while also respecting First Amendment rights. Focusing on contribution limits for electioneering communications makes all independent election expenditures more democratic by laundering larger contributions through participatory channels. I conclude by evaluating the constitutionality of this proposal in light of doctrine that upholds a similar scheme in the tax code - where organizations get the benefits of §501(c)(3) status in exchange for agreeing not to engage in certain political activities.

Suggested Citation

Schumer, Jessica Emily, Making Sense with Democratic Dollars: How Congress Can Use the Disclose Act to Incentive Small Donor Participation After Citizens United (May 3, 2010). Available at SSRN: https://ssrn.com/abstract=1599719 or http://dx.doi.org/10.2139/ssrn.1599719

Jessica Emily Schumer (Contact Author)

Yale University - Law School ( email )

P.O. Box 208215
New Haven, CT 06520-8215
United States

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