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Why the Hillary Clinton Campaign Finance Plan Is Uncomfortably Hypocritical

By , Money Morning •

What Is a Super PAC?

A super PAC, also known as an "independent expenditure-only committee," is a tool to make political donations. The money generated by super PACs is typically used to create and launch ads to either oppose or support a particular candidate.

Super PACs are relatively new entities that came about in July 2010 as a result of the U.S. Supreme Court's ruling in Citizens United v. Federal Election Commission. They are like a traditional PAC (political action committee), but importantly, they don't have as many restrictions. For instance, contribution limits are unconstitutional.

As of Sept. 8, 2015, 1,132 groups organized as super PACs have reported total receipts of $303,051,751 and total independent expenditures of $13,931,591 in the 2016 cycle.

The specifics of the Hillary Clinton campaign finance plan were revealed Tuesday, Sept. 8. Campaign aides laid out the proposal, which primarily addresses the current fiscal political practices many Americans view as corrupt...

Specifically, Clinton's plan focuses on stifling the influence of super political action committees, or super PACs. The former secretary of state has long been a vocal opponent of the 2010 Supreme Court's ruling in the 2010 Citizens United case. That's when the high court found the government cannot restrict political expenditures by non-profit organizations - a decision that led to the rise of super PACs.

"We have to end the flood of secret, unaccountable money that is distorting our elections," Clinton said in a statement given by her aides and reported by CNN Politics, "corrupting our political system, and drowning out the voices of too many everyday Americans." Citizens United is one such super PAC; as such, it can receive unlimited funds from corporations and unions to be spent in support of a particular candidate.

The irony of the Hillary Clinton campaign finance plan is that she is utilizing super PACs for her 2016 presidential run - and she's doing so in a major way...

Clinton has raised $20.3 million from super PACs and other PACs according to The New York Times on Aug. 1. For example, Priorities U.S.A. is a large Democratic super PAC dedicated solely to supporting Clinton's campaign, CNN Politics pointed out on Sept. 8. And activist billionaire George Soros has written seven-figure checks to it.

In fact, Clinton has cashed in from super PACs more than any other rival Democrat, including her No. 1 opponent Bernie Sanders, who chose not to form any super PACs whatsoever. And across the aisle, only Jeb Bush ($108.5 million) and Ted Cruz ($38.1 million) have raked in more from super PACs. Otherwise, Clinton has raised more than all the other 14 GOP contenders.

Still, Clinton wishes to increase transparency in the process - an idea that hasn't been her best friend lately.

Let's take a look at how Hillary Clinton proposes to make super PAC financial reform happen...

Hillary Clinton Campaign Finance Plan: A 4-Step Super PAC Killer

Hillary Clinton Campaign Finance Plan - Step 1: The Democratic front runner and former secretary of state has pledged to appoint Supreme Court justices committed to overturning the Citizens United v. Federal Election Commission ruling, USA Today reported on Sept. 8, 2015.

Hillary Clinton Campaign Finance Plan - Step 2: Clinton is also expected to push for a constitutional amendment that restricts the influence of special interest groups. The legislation would also call for public transparency when significant contributions are made and/or spent, Politico reported on Sept. 8.

Hillary Clinton Campaign Finance Plan - Step 3: Clinton intends to draft and sign an executive order that would require federal contractors to reveal all political contributions, stated The Wall Street Journal.

Hillary Clinton Campaign Finance Plan - Step 4: Finally, since presidential candidates can accept federal matching funds, Clinton vows to set up a new system to reward candidates who raise money from small donors. For example, The Wall Street Journal mentioned that "in the 2008 presidential race, Barack Obama declined federal matching funds, concluding he could raise more on his own than the lump sum the federal government would have provided." Clinton's proposed plan would differ, however, by making the federal matching fund system available to congressional candidates as well as presidential candidates. And it would provide more than just a dollar-for-dollar match.

Stay tuned to Money Morning for more on the 2016 presidential election. You can follow us on Twitter @moneymorning or like us on Facebook.

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