Citizens United was one of the worst SCOUTS decisions in American history. Most Americans agree:
A 2020 Data for Progress poll shows 66% of likely voters supported overturning Citizens United (support included majorities of Democrats and independents, plus substantial Republican support)
A 2018 survey by University of Maryland and Voice of the People survey shows overwhelming support for overturning Citizens United and for campaign finance reform
As a reminder, in Citizens United, the conservative majority on SCOTUS essentially said that corporations and other artificial entities (labor unions, non-profits) had 1st Amendment Free-Speech rights. Now IANAL, but this can’t be an “originalist” view of the constitution since corporations, companies, labor unions, non-profits and PACs are not mentioned anywhere in the constitution. They are statutory entities created by making laws.
In the Citizens United case, the conservative majority took pains to emphasize the importance of transparency and sunlight in political financial contributions as o e of the key factors in their decision.
Below are some of the writings of the court majority in the Citizens United decision:
"With the advent of the Internet, prompt disclosure of expenditures can provide shareholders and citizens with the information needed to hold corporations and elected officials accountable."
"Disclosure permits citizens and shareholders to react to the speech of corporate entities in a proper way."
Disclosure "provides the electorate with information" about who is funding political messages.
In fact, while the Court struck down restrictions on independent expenditures, it upheld federal disclosure and disclaimer requirements by an 8–1 vote. Even some justices who disagreed with the broader ruling agreed that disclosure requirements were generally constitutional. The Brennan Center for Justice provide a great overview of the Citizens United decision, including rebutting the assumptions by the majority that independent spending could not be corrupt and transparency would provide the disinfectant. From the Brennan piece:
“The justices who decided Citizens United held that independent spending could not pose a substantial risk of corruption on the erroneous assumption that the money wouldn’t be under the control of any single candidate or party. They also assumed that existing transparency rules would require all the new spending they were permitting to be fully transparent, allowing voters to appropriately evaluate the messages targeting them.
Both assumptions have proven to be incorrect. While super PACs and other outside spenders are supposed to be separate from candidates and parties, they usually work in tandem with them — to the point where affiliated super PACs that can raise unlimited money are now integral to most major campaigns. Legal loopholes also mean that many of these groups can keep their sources of funding secret.”
So how is the transparency thing going? Well friends and neighbors, it’s not so sunny in Philadelphia:
Oh.
Also,
First, a bit of history. For decades, until the early 2020s, the United States stood at the center of the world of offshore finance. While places like Switzerland, Panama, the Cayman Islands, and other smaller locales got most of the headlines regarding offshore secrecy, in reality it was the U.S. that dominated the world of laundering illicit wealth, attracting billions (and potentially more) from narco-traffickers, arms dealers, kleptocrats, and others looking to wash their wealth clean.
Many industries accelerated America’s transformation into an offshore behemoth, including real estate and private equity, both of which enjoyed decades-long loopholes in basic anti–money laundering provisions. But there was one industry in particular that served as the bedrock for all of these laundering networks: shell companies. Thanks to America’s fractured corporate formation landscape, the federal government had no say in how U.S. shell companies were formed—or what kind of information was needed when setting up a shell company.
As a result, states like Delaware, Wyoming, Nevada, and others provided all of the secrecy and legal protections that cartel heads, dictators, human smugglers, and others needed to hide their financial tracks. In a matter of minutes, anyone around the world could set up a U.S. shell company and immediately access their own bespoke U.S. money-laundering network—all of it perfectly legally. Time and again, investigators both domestic and foreign could track a dirty money trail, only to watch their efforts collapse in the face of a Delaware or Nevada shell company.
It wasn’t simply autocrats and their oligarchic proxies who benefited from these anonymous shells. Wealthy Americans, those looking to secretly influence American politics, those searching for ways to covertly inject finance into U.S. elections—all of them profited from this rank secrecy.
Efforts to bring the barest transparency to U.S. shell companies stretch back to at least 2008. But it wasn’t until the early 2020s that legislators finally passed something called the Corporate Transparency Act. The bill was hardly partisan; remarkably, a slate of legislators from both sides of the aisle passed the bill over President Trump’s veto. Nor was the bill onerous. Instead of a public registry of corporate owners, as seen in places like the United Kingdom, America’s new shell company database would remain private, accessible only to federal authorities and other officials tracking illicit and looted wealth.
It’s difficult to overstate just how momentous this new legislation was. For the first time in decades, the U.S. was no longer the leading font of anonymous shell companies. The best days of U.S. offshoring appeared behind us.
Wow! finally, our elected officials actually took a step or two to provide transparency (at least to federal authorities) and stop money laundering.
Not so fast.
Enter Congress. In late April, Trump’s allies on the House Financial Services Committee pushed through legislation by a one-vote margin to formally repeal the requirement that U.S. shells divulge their true owners. Claiming that the transparency requirement—which requires that company managers take approximately five minutes to fill out a form disclosing company ownership—was an onerous burden, the new bill, dubbed the Repealing Big Brother Overreach Act and sponsored by Ohio Republican Representative Warren Davidson, will restore America’s status as the leading offshore haven. Last month, Senate colleagues introduced similar legislation, aiming to attach it to the broader defense bill set to be passed later this year.
All of this is a staggering gift to cartels, Chinese money-laundering networks, Iranian proxies, and others who have relied on anonymous U.S. shells—all of whom Republicans supposedly stand against. The repeal effort “ignores clear warnings from American national security and law enforcement officials,” as Transparency International’s Gary Kalman said, all of which “risks turning the United States back into a place where criminals and foreign adversaries can more easily fund their networks and hide dirty money in plain sight.”
It’s not difficult to see where this new momentum for effective repeal is coming from. Trump, saturated as he is in rampaging anonymity and international financing, has gone as far as he can to flip the U.S. from an opponent of corruption to a confederate of kleptocrats around the world. But he needs his allies in Congress to help him achieve all of his pro-kleptocracy aims—and to help all of their wealthy, oligarchic benefactors continue to benefit from anonymous U.S. shell companies, as well.
In the service of aiding those wealthy donors, Republicans pushing for the bill’s effective repeal are willing to aid Russian gun-runners, terrorist financiers, transnational criminal syndicates, and others who need all of the anonymity that states like Delaware, Nevada, Wyoming, and others perfected. “Introducing this bill isn’t about lowering costs for small businesses: it’s about Congress choosing to protect the interests of wealthy donors over the safety of their communities,” Erica Hanichak, deputy director of the FACT Coalition, said.
All of which is to say: Trump may be the leading wrecking ball destroying America’s anti-corruption credentials. But he is hardly alone. Thanks to congressional Republicans, Trump—and corrupt actors around the world, salivating at the chance to turn the U.S. back into their own personal dirty-money laundromat, can finally restore an American kleptocracy in which only oligarchs, grifters, and criminal kingpins benefit, while everyone else pays the price.
Oh again.
We have many pressing issues which need our attention. IMHO, climate change is the world’s existential issue, while inequality is the United States’ existential issue.
But nothing will change until we find the will and the ways to remove big money from politics and also create a totally transparent system of financing and funding campaigns.
We need to:
Create a system of public financing of campaigns
Have a SCOTUS that understands that money does not equal speech. One that stands for “one person one vote” instead of standing for “unlimited money to influence many votes yet can’t vote themselves”
The 5th Dimension - The Age of Aquarius/Let The Sunshine In




