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in whichDemocrats are in danger of losing control of both the House and Senate. David Axelrod, a top Obama
adviser, said on CBS’s “Face the Nation” that secret politicaldona- tions to the Chamber and other groups pose “a threat to our democracy.” Axelrod also took the unusual
step of calling on the Chamber to release internal documents back- ing up its contention that foreign money is not being used to pay for U.S. political activities. Demo-
EZ SU
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MONDAY, OCTOBER 11, 2010 Obama raises specter of foreign funds in GOP efforts
crats have seized on a report by a liberal blog alleging that dues fromChamber-affiliated business councils could be used in that way. “If the Chamber opens up its
books and says, ‘Here’s where our political money’s coming from,’ then we’ll know,” Axelrod said. “But until they do that, all we have is their assertion.” The Chamber has vehemently
denied the allegations, character- izing them as part of a desperate strategy to stave off a GOP take- over of Congress. The business lobby has vowed to spend up to
$75 million on the midterm elec- tions, primarily in favor of Re- publicans. Chamber Senior Vice Presi-
dent Tom Collamore called the Democratic attacks “a blatant at- tempt to avoid a serious discus- sion of Americans’ top priority— creating jobs and growing the economy.” TheDemocraticNationalCom-
mittee began airing ads over the weekend attacking the Chamber as “shills for big business” and claiming: “It appears they’ve even taken foreign money to spend on our elections.” The ad
also attacks Karl Rove, former Bush administration political ad- viser, and Ed Gillespie, former Republican National Committee chief, for their ties to American Crossroads, an independent group also spending big on elec- tion ads this year. “Tell the Bush crowd and the
Chamber of Commerce: Stop stealing our democracy,” the ad says.
Gillespie and Rove, both of
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whom say they are not formally connected to American Cross- roads, bristled at the attacks dur- ing television appearances Sun- day. Rove said on “Fox News Sunday” that there was “not one shred of evidence to back up that baseless lie” that foreign money was funding conservative cam- paigns. “Don’t accuse those who are
playing by the rules of somehow doingsomething that is unethical or illegal,” Gillespie said on “Face theNation.” This year’s record tide of spending has been fueled in part by a controversial Supreme Court ruling in Citizens United v. Feder- al Election Commission, which found that corporations could spend as much as they want on elections. Obama and Senate Democrats failed in their at- tempts to enact legislation that would have increased disclosure requirements for such spending and tightened restrictions on po- litical activities by foreign-linked firms.
Democratic candidates have increasingly attacked Republi-
cans such as Senate candidate Carly Fiorina of California for allegedly backing policies that encourage U.S. employers to move jobs to cheaper overseas labor markets. The party has also seized on a
report last week by Think- Progress, an arm of the liberal Center for American Progress, documenting the Chamber’s ties to “AmChams”andother overseas business groups that pay dues to the U.S.-based group. The report said the Chamber funds U.S. po- litical activities out of the same account that collects foreign dues, and raised the possibility that the money could be unlaw- fully commingled. Chamber officials say the
group collects about $100,000 in dues from overseas affiliates and that themoney is cordoned off for use on “international programs.” The business lobby has declined to release further details, citing confidentiality rules governing nonprofits. Josh Earnest, a White House
spokesman, said Obama and oth- er administration officials are not accusing the Chamber of illegali- ty nor calling for an investigation into its campaign spending. He also acknowledged that the White House has no specific evi- dence that the Chamber is using foreign money inU.S. elections. “The president is making a
disclosure argument,” Earnest said.“He’s just saying for the good of democracy the Chamber should disclose where it is getting its money and how it is financing
these ads, and that all organiza- tions should.” Asked if the White House be-
lieves midterm voters care about this issue, Earnest said “it goes to a larger point.” “You have Republicans in Con-
gress standing up for corporate interests to block the president’s agenda,” he said. “And I think voters do care that some of the same corporate interests are funding these ads attacking Dem- ocrats.” Legal experts from both par-
ties say the prohibition against foreign funding in U.S. elections is clear, and noted that Demo- crats have turned up no hard evidence that the Chamber is violating that ban. But advocates of stronger cam-
paign-finance regulations also said there is little apparent polic- ing of the restrictions either by the FEC or the Internal Revenue Service. “It’s very clear that current
laws are not up to ensuring that this doesn’t happen,” said Mere- dith McGehee, policy director at the nonpartisan Campaign Legal Center. “It’s one of the reasons that you’ll continue to see these types of accusations, which are really one of the most volatile accusations you can make during an election.”
eggend@washpost.com wilsons@washpost.com
Staff writers Nia-Malika Henderson in Philadelphia and Carol D. Leonnig in Washington contributed to this report.
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