Posts in the "PAC" Category

Rangel in the spotlight (again)

Rep. Charlie Rangel (D-NY) is again under scrutiny as FEC records show that he "steered nearly $80,000 of campaign cash to an internet company run by his son." The cash was payment for creating and managing Rangel's re-election and PAC websites. However, some who viewed the sites say that the poor design was worth no more than $100.

Rangel, who is also undergoing a House Ethics Committee probe into his failure to pay property taxes on his NYC real estate as well as using House stationary to solicit funds for a public policy institute bearing his name, now faces further ethics concerns around whether the work his son did for the website was a payment or a payoff.

This from Meredith McGehee of the Campaign Legal Center:
“You're in a situation where you were given money for a campaign and it's being used to enrich family members,” she added. “The return argument is they're performing legitimate services. The question that needs to be asked in this case is: Was this a legitimate payment or was this a payoff?”


The Politico article compares Rangel's website expenses to other members of Congress over the last few years. He ranks numero uno with fellow big spenders Ralph Regula (R-OH) and former Congressman Chris Shays (R-CT) only spending half as much on website development.

Sunlight Foundation's Paul Blumenthal posted a screenshot of the Congressman's PAC website noting numerous errors. Not what you hope to be getting for an $80,000 fee. Ironically, the payments to Steven Rangel stopped after he became investigative counsel to the House Energy and Commerce Committee in 2007 for a reportedly $80,000-a-year.

Wal-Mart shopping for Democrats

Wal-Mart is showing off its political savvy of late. Recent reports show that Wal-Mart's PAC, (Wal-Mart Stores, Inc. PAC for Responsible Government) is on pace to fork over more money to House democrats than House Republicans for the first time ever. At the same time, they're pressuring employees to support John McCain in November warning that an Obama administration would be "bad for labor." (Note the irony: Wal-Mart organizing its labor not to vote for someone who will allow their labor to organize).

Mixed signals? Perhaps, but it's also a sign that America's biggest corporation has the ability to stay tight with whoever is in power. In the House of Representatives, the Democrats are poised to capture another significant majority, something Wal-Mart is betting on by funneling big checks to key Democrats. Let's call it a smart investment. Or, we could call it bribery. This from the Rothenberg Political Report:

Through June, Wal-Mart’s PAC had contributed to 86 House Democrats this cycle, amounting to just more than one-third of the Caucus. That’s more than the 77 House Democrats Wal-Mart supported in 2006 and the 62 that received PAC money in 2004.

Since 2004, Wal-Mart has given $27,500 to House Majority Leader Steny Hoyer (Md.), $22,500 to House Majority Whip James Clyburn (S.C.), $12,000 to Chief Deputy Whip Debbie Wasserman Schultz (Fla.), and $20,500 to House Ways and Means Chairman Charlie Rangel (N.Y.).


Earlier, the Wall Street Journal reported that Wal-Mart managers and executives were warning their employees that an Obama victory in 2008 would be a threat to the corporation because it would invite pressure to unionize.

The Wal-Mart human-resources managers who run the meetings don't specifically tell attendees how to vote in November's election, but make it clear that voting for Democratic presidential hopeful Sen. Barack Obama would be tantamount to inviting unions in, according to Wal-Mart employees who attended gatherings in Maryland, Missouri and other states.

"The meeting leader said, 'I am not telling you how to vote, but if the Democrats win, this bill will pass and you won't have a vote on whether you want a union,'" said a Wal-Mart customer-service supervisor from Missouri. "I am not a stupid person. They were telling me how to vote," she said.


Wal-Mart is playing it smart. They understand the value of having a Republican president but also of having a Congress who will defend their interests (but not those of their workers').

At the heart of this strategy is the power of incumbency.

In a few cases, it is clear that Wal-Mart values incumbency rather than a political party. For example, in Texas’ 23rd district, Wal-Mart gave then-Rep. Henry Bonilla (R) contributions in 2004 ($7,500) and 2006 ($15,000), but this cycle gave $10,000 to the man who defeated him, Democratic Rep. Ciro Rodriguez.

In Florida’s 22nd district, then-Rep. Clay Shaw (R) received Wal-Mart PAC money in 2004 ($5,000) and 2006 ($10,000), but the company gave $10,000 this cycle to Rep. Ron Klein (D), who defeated Wal-Mart’s candidate in 2006. Similar giving patterns can be seen in Pennsylvania’s 4th district, Indiana’s 2nd, Georgia’s 12th, North Carolina’s 11th and Indiana’s 9th.

In New York’s 24th district, Wal-Mart’s PAC contributed $5,000 for then-Rep. Sherwood Boehlert’s 2004 re-election and $10,000 to Ray Meier, the Republican who ran unsuccessfully to replace him in 2006. But this cycle, Wal-Mart has maxed out ($10,000) to Rep. Michael Arcuri (D), whom it once opposed.


The message Wal-Mart is sending with its political contributions is not a regard for "responsible government" (or whatever harmless sounding PAC title they choose) but rather, a desire to buy power from it.

Many have called for the Democratic beneficiaries to give back the Wal-Mart loot, but no action has since been seen from recipients like Majority Leader Steny Hoyer (M.d), Majority Whip James Clyburn (S.C.), and House Ways and Means Chairman Charles Rangel (N.Y.).