Federal Campaign Contribution Laws for Presidential and Vice Presidential

Federal Campaign Contributions

Over the last several years, this issue of campaign finance has been increasingly brought to the forefront. This is because the influences of the affluent and special interests in the field of politics have become more perverse. However, the issue of the involvement of special interests in elections has been a major challenge (with the founding fathers warning about how this is a threat to democracy). ("The Presidential Election")

Recently, the U.S. Supreme Court ruled that limits placed on campaign contributions (i.e. soft money) are unconstitutional. This has opened the flood gates for many different groups to establish political action committees (PACs) that will provide unlimited donations to candidates. This is going directly against the very laws which are designed to limit the influence of the special interests. As, there is a patchwork of regulations that are not supported by: consistent rulings from the courts. Instead, a select amount of laws are applicable. While other regulations (i.e. McCain Feingold) have been struck down (which is giving these groups unprecedented access to political candidates).

In the Presidential campaign, this lack of regulation means that PACs are forming (who will directly target the opposition). The way that this occurs, is through the use of soft money to: allow large organizations to establish a PAC and contribute hundreds of millions of dollars to the campaign. To fully understand what is taking place requires looking at: the mechanisms involved during the process, specific issues when these laws are applicable, how this impacting the election, the way this will affect the balance of power and how this relates to business law. Together, these different elements will offer the greatest insights as to the strengths and drawbacks of the current system. ("The Presidential Election")

A brief scope of the, intent, mechanics, and effects of the law for Federal Contributions to Campaigns for the President and VP

The basic intent of campaign finance laws is to limit the influence of the special interests in the process. The mechanism that is used to enforce these regulations is the Federal Election Commission. They have the power to monitor and enforce federal laws when it comes to the areas of campaign finance. In general, this has worked for limiting certain kinds of personal contributions from wealthy individuals. However, as time went by, many of these individuals have formed different PACs (which are designed to go around the various campaign finance laws). The impact is that, this provided a basic foundation for regulating contributions. The problem is that many of these guidelines need to be updated (to address the loop holes that special interests are taking advantage of). ("A Century of Campaign Finance Laws")

Cite a relevant issue or incident that the law is applied, when it is violated, and abused by someone

A recent incident that occurred was with one of the 2008 Presidential candidate named John Edwards. During the middle of the primary season, he had an extra marital affair with an aide. She became pregnant and gave birth to Edward's daughter. During this process, is when the campaign diverted funds to provide her with financial support. Moreover, Edwards was a part of a major cover up to hide the affair and the child from the public. This is a violation of federal campaign finance laws (which resulted in Edward's indictment). ("John Edwards Repays $1.2 Million")

Campaign Finance and the Presidential Elections

In the current Presidential election, both the Romney and Obama campaigns have been receiving a tremendous amount of support from super PACs. In many cases, these are wealthy individuals that will pool their resources together along ideological lines. In the case of Romney, he has been receiving direct support from individuals such as: Paul Singer (the founder of Elliot Management) and JW Marriot Jr. (the CEO of Marriot International). While Obama is receiving funding from: John Rogers (the founder of Aerial Corp.) and the Service Employees International Union. This is illustrating how during the upcoming Presidential election, super PACs will play an important role. (Bolton)