June 26, 2012

How the Supreme Court has sold America to multinational corporations

 John Nichols, Nation - The court’s 5–4 decision in the Montana case of American Tradition Partnership v. Bullock significantly expands the scope and reach of the Citizens United ruling by striking down state limits on corporate spending in state and local elections. “The question presented in this case is whether the holding of Citizens United applies to the Montana state law,” the majority wrote. “There can be no serious doubt that it does.”

Translation: if Exxon Mobil wants to spend $10 million to support a favored candidate in a state legislative or city council race that might decide whether the corporation is regulated, or whether it gets new drilling rights, it can. But why stop at $10 million? If it costs $100 million to shout down the opposition, the Court says that is fine. If if costs $1 billion, that’s fine, too.

And what of the opposition. Can groups that represent the public interest push back? Can labor unions take a stand in favor of taxing corporations like Exxon Mobil?

Not with the same freedom or flexibility that they had from the 1930s until this year. Last Thursday, the Court erected elaborate new barriers to participation in elections by public-sector unions—requiring that they get affirmative approval from workers they represent before making special dues assessments to fund campaigns countering corporations.

How might it work? If Walmart wanted to support candidates who promised to eliminate all taxes for Walmart, the corporation could spend unlimited amounts of money. It would not need to gain stockholder approval. It can just go for it.

But if AFSCME wants to counter Walmart argument, saying that eliminating taxes on out-of-state retailers will save consumers very little but will ultimate undermine funding for schools and public services, the union will have to go through the laborious process of gaining permission from tens of thousands, perhaps hundreds of thousands of workers. And even then, it will face additional reporting and structural barriers imposed by the Court.

No comments: