Defying Republican Party demands to rule illegal the plans of a network of pro-Democratic political committees, Federal Election Commission Chairman Bradley A. Smith now argues that these committees should remain free to raise and spend large contributions known as "soft money."
Smith's argument, spelled out in a 37-page proposal to his five FEC colleagues, sharply increases, but does not guarantee, the likelihood that new pro-Democratic groups with multimillion-dollar budgets will become significant forces in the 2004 election and become what amounts to a "shadow" Democratic Party.
One of the new groups, America Coming Together (ACT), has already raised $12.5 million toward an election-year goal of $95 million. Such liberal donors as financier George Soros and Progressive Corp. Chairman Peter B. Lewis have donated $6.5 million and $3.5 million, respectively, to pro-Democratic organizations.
The Republican National Committee, which would not take such action without the blessings of the Bush White House, has called on the FEC to rein in the Democratic and, presumably, pro-Republican groups that are likely to be formed in reaction to the Democratic drive.
After opposing the McCain-Feingold campaign finance law in 2002 when it was enacted and later before the Supreme Court, the RNC recently wrote: "It is now incumbent upon the FEC to not sanction the undermining and evasion of [the McCain-Feingold law] through the activities of newly formed 527 organizations dedicated to electing or defeating specific federal candidates."
The new groups planning to spend as much as $300 million, most of it soft money, in 2004 are known as 527s for the section of the tax code they fall under.
Smith, writing a proposed response to a request for an advisory opinion on the legality of many activities 527 groups plan to conduct, contended that the McCain-Feingold law is aimed at political parties and "does not apply to the regulation of political entities outside these specific provisions."
Smith, a Republican appointee and a critic of campaign finance regulation in his academic writings, cited the Supreme Court decision affirming the constitutionality of McCain-Feingold. The ruling noted that the law "imposes numerous restrictions on the fundraising abilities of the political parties. . . . Interest groups, however, remain free to raise money to fund voter registration, [get-out-the-vote] activities, mailings and broadcast advertising."
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