Campaign Finance Legislation Threatens Businesses’ First Amendment Rights

H.R. 5175 and S. 3628, the Democracy Is Strengthened by Casting Light on Spending in Elections (DISCLOSE) Act, threaten the First Amendment rights of businesses across the country. They represent a significant departure from past campaign finance legislation, which sought to treat unions and corporations comparably and was framed in a genuinely bipartisan manner. These pieces of legislation have been crafted to disadvantage for-profit corporations and the associations that represent them. It places onerous restrictions on corporate free speech while ignoring unions’ immense political influence. 

One of the hallmarks of our political system is keeping a level playing field for all American companies and labor unions. These bills are a direct assault on this critical check and balance.

The Supreme Court repeatedly has recognized that voluntary associations are vital participants in our public debate, and that government attempts to curb participation in associations to stifle their voice violate the First Amendment. The Court also has recognized that it violates the First Amendment for the government to engage in “differential treatment” of speakers based on their identity or the content of their message.

H.R. 5175/S. 3628 presents new regulatory requirements that are intended to stifle corporate speech.  That prohibition on core political speech is flatly unconstitutional and directly inconsistent with the Supreme Court’s holding in Citizens United that Congress can prohibit political speech only where it has evidence of quid pro quo corruption. There is no such evidence.

These bills impose no comparable restrictions on labor unions that receive federal grants, negotiate collective bargaining agreements with the government or have international affiliates, even though unions and their political action committees are the single largest contributor to political campaigns and claim to have spent nearly $450 million in the 2008 presidential race.

The Indiana business community is keenly aware of what is going on with this proposed legislation – and urge you to contact your U.S. representative and senators today and ask them to oppose this unconstitutional legislation!