Presidential election campaign fund checkoff
Encyclopedia
The presidential election campaign fund checkoff appears on US income tax return forms as the question Do you want $3 of your federal tax to go to the Presidential Election Campaign Fund?
Originally $1 and implemented in the 1970s as an attempt at the public funding of elections, this money provides for the financing of presidential primary and general election campaigns and national party conventions. Beginning with the 1973 tax year, individual taxpayers were able to designate $1 to be applied to the Presidential Election Campaign Fund. Both the Republican
and Democratic
nominees in the general election receive a fixed amount of checkoff dollars. Nominees from other political parties may qualify for a smaller, proportionate amount of checkoff funds if they receive over five percent of the vote. The national parties also receive funds to cover the costs of their national conventions. Matching funds are also given for primary candidates for small contributions. The campaign fund reduces a candidate's dependence on large contributions from individuals and special-interest groups. This program is administered by the Federal Election Commission
(FEC).
Requirements to be declared eligible include agreeing to an overall spending limit, abiding by spending limits in each state, using public funds only for legitimate campaign-related expenses, keeping financial records and permitting an extensive campaign audit.
Checking the box does not change the amount of an individual's tax or refund. The $3 is paid by the government. In other words, checking the box causes the federal government to receive $3 less in tax revenue for other spending, than if you hadn't checked the box.
Only candidates seeking nomination by a political party to the office of President are eligible to receive primary matching funds. In addition, a candidate must establish eligibility by submitting to the FEC proof that at least $5,000 was raised in each of at least 20 states. Only a maximum of $250 per individual applies toward the $5,000 threshold in each state.
The spending limit increases every cycle due to inflation. The FEC estimates that the limits for the primary election will be $40.9 million, of which a candidate must abide by state limits of 65.4 cents per person of voting age population in a state, or $817,800, whichever is greater. Certain fundraising expenses (up to 20 percent of the expenditure limit) and legal and accounting expenses incurred solely to ensure the campaign's compliance with the law do not count against the expenditure limits.
Once they have established eligibility for matching payments, Presidential candidates may receive public funds to match contributions from individual contributors, up to $250 per individual. The contributions must be in the form of a check or money order, although with the Internet
, credit cards are also eligible as they can be tracked. Contributions from political committees and cash contributions are ineligible.
Eligible candidates may receive public funds equaling up to half of the national spending limit for the primary campaign, although because of the donors that give up to the $2,300 limit, they generally raise much more money than they receive in matching funds.
In 2008, many of the top candidates chose not to accept the primary matching funds. Tom Tancredo
, John Edwards
, Chris Dodd, Joe Biden
, Dennis Kucinich
, and Duncan Hunter
qualified for and elected to take public funds in the primary. John McCain
qualified for public funds in the primary, but later decided to reject them. Other major candidates have eschewed the low amount of spending permitted and have chosen not to participate.
, namely I approve this message
.
In addition, candidates may spend up to $50,000 from their own personal funds. Such spending does not count against the expenditure limit.
Minor party
candidates and new party candidates may become eligible for partial public funding of their general election campaigns. (A minor party candidate is the nominee of a party whose candidate received between 5 and 25 percent of the total popular vote in the preceding Presidential election. A new party candidate is the nominee of a party that is neither a major party nor a minor party. This includes most "independent" candidates, because they run on a token party line.) The amount of public funding to which a minor party candidate is entitled is based on the ratio of the party's popular vote in the preceding Presidential election to the average popular vote of the two major party candidates in that election. A new party candidate receives partial public funding after the election if he/she receives 5 percent or more of the vote. The entitlement is based on the ratio of the new party candidate's popular vote in the current election to the average popular vote of the two major party candidates in the election.
Although minor and new party candidates may supplement public funds with private contributions and may exempt some fundraising costs from their expenditure limit, they are otherwise subject to the same spending limit and other requirements that apply to major party candidates.
Contributions may be accepted, however, for a special account maintained exclusively to pay for legal and accounting expenses associated with complying with the campaign finance law. Contributions to this account count against the donor's annual limit for the party. Certain supplemental services may also be provided by the host state and city governments and by local groups such as businesses and labor unions, such as transportation, and policing. Or a business may sell or rent chairs, podiums, tables or other equipment to the convention committee at discounted rates.
Originally $1 and implemented in the 1970s as an attempt at the public funding of elections, this money provides for the financing of presidential primary and general election campaigns and national party conventions. Beginning with the 1973 tax year, individual taxpayers were able to designate $1 to be applied to the Presidential Election Campaign Fund. Both the Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
and Democratic
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
nominees in the general election receive a fixed amount of checkoff dollars. Nominees from other political parties may qualify for a smaller, proportionate amount of checkoff funds if they receive over five percent of the vote. The national parties also receive funds to cover the costs of their national conventions. Matching funds are also given for primary candidates for small contributions. The campaign fund reduces a candidate's dependence on large contributions from individuals and special-interest groups. This program is administered by the Federal Election Commission
Federal Election Commission
The Federal Election Commission is an independent regulatory agency that was founded in 1975 by the United States Congress to regulate the campaign finance legislation in the United States. It was created in a provision of the 1975 amendment to the Federal Election Campaign Act...
(FEC).
Requirements to be declared eligible include agreeing to an overall spending limit, abiding by spending limits in each state, using public funds only for legitimate campaign-related expenses, keeping financial records and permitting an extensive campaign audit.
Checking the box does not change the amount of an individual's tax or refund. The $3 is paid by the government. In other words, checking the box causes the federal government to receive $3 less in tax revenue for other spending, than if you hadn't checked the box.
Primary election
The federal government will match up to $250 of an individual's total contributions to an eligible candidate.Only candidates seeking nomination by a political party to the office of President are eligible to receive primary matching funds. In addition, a candidate must establish eligibility by submitting to the FEC proof that at least $5,000 was raised in each of at least 20 states. Only a maximum of $250 per individual applies toward the $5,000 threshold in each state.
The spending limit increases every cycle due to inflation. The FEC estimates that the limits for the primary election will be $40.9 million, of which a candidate must abide by state limits of 65.4 cents per person of voting age population in a state, or $817,800, whichever is greater. Certain fundraising expenses (up to 20 percent of the expenditure limit) and legal and accounting expenses incurred solely to ensure the campaign's compliance with the law do not count against the expenditure limits.
Once they have established eligibility for matching payments, Presidential candidates may receive public funds to match contributions from individual contributors, up to $250 per individual. The contributions must be in the form of a check or money order, although with the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
, credit cards are also eligible as they can be tracked. Contributions from political committees and cash contributions are ineligible.
Eligible candidates may receive public funds equaling up to half of the national spending limit for the primary campaign, although because of the donors that give up to the $2,300 limit, they generally raise much more money than they receive in matching funds.
In 2008, many of the top candidates chose not to accept the primary matching funds. Tom Tancredo
Tom Tancredo
Thomas Gerard "Tom" Tancredo is an American politician from Colorado, who represented the state's sixth congressional district in the United States House of Representatives from 1999 to 2009, as a Republican...
, John Edwards
John Edwards
Johnny Reid "John" Edwards is an American politician, who served as a U.S. Senator from North Carolina. He was the Democratic nominee for Vice President in 2004, and was a candidate for the Democratic presidential nomination in 2004 and 2008.He defeated incumbent Republican Lauch Faircloth in...
, Chris Dodd, Joe Biden
Joe Biden
Joseph Robinette "Joe" Biden, Jr. is the 47th and current Vice President of the United States, serving under President Barack Obama...
, Dennis Kucinich
Dennis Kucinich
Dennis John Kucinich is the U.S. Representative for , serving since 1997. He was furthermore a candidate for the Democratic nomination for President of the United States in the 2004 and 2008 presidential elections....
, and Duncan Hunter
Duncan Hunter
Duncan Lee Hunter is an American politician. He was a Republican member of the House of Representatives from California's 52nd, 45th and 42nd districts from 1981 to 2009....
qualified for and elected to take public funds in the primary. John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
qualified for public funds in the primary, but later decided to reject them. Other major candidates have eschewed the low amount of spending permitted and have chosen not to participate.
General election
The Presidential nominee of each major party (one whose candidate received more than 25% of the vote in the previous election) may become eligible for a public grant of $81.78 million (if the election were held in 2007). To be eligible to receive the public funds, the candidate must limit spending to the amount of the grant and cannot accept private contributions for the campaign. After the conventions, candidates raise funds for general election legal and accounting compliance funds (GELACs), which are to exclusively to pay for legal and accounting expenses for the campaign. They can also pay for recounts, since that is considered a "winding down" expense allowed under regulations. These expenditures are not subject the above limit. However, in 2007, the FEC ruled that up to 5% of broadcast advertising can be paid for using GELACs, since that is time nominally spent on the required disclaimers under the Bipartisan Campaign Reform ActBipartisan Campaign Reform Act
The Bipartisan Campaign Reform Act of 2002 is a United States federal law that amended the Federal Election Campaign Act of 1971, which regulates the financing of political campaigns. Its chief sponsors were Senators Russell Feingold and John McCain...
, namely I approve this message
I approve this message
In American politics, "I approve this message" is a phrase said by candidates for federal office in political advertisements on television and radio in order to comply with the so-called Stand By Your Ad provision of the Bipartisan Campaign Reform Act , enacted in 2002, that...
.
In addition, candidates may spend up to $50,000 from their own personal funds. Such spending does not count against the expenditure limit.
Minor party
Minor party
Minor party is a political party that play a smaller role than a major party in a country's politics and elections. The difference between minor and major parties can be so big that the membership total, donations, and the candidates that they are able to produce or attract are very distinct...
candidates and new party candidates may become eligible for partial public funding of their general election campaigns. (A minor party candidate is the nominee of a party whose candidate received between 5 and 25 percent of the total popular vote in the preceding Presidential election. A new party candidate is the nominee of a party that is neither a major party nor a minor party. This includes most "independent" candidates, because they run on a token party line.) The amount of public funding to which a minor party candidate is entitled is based on the ratio of the party's popular vote in the preceding Presidential election to the average popular vote of the two major party candidates in that election. A new party candidate receives partial public funding after the election if he/she receives 5 percent or more of the vote. The entitlement is based on the ratio of the new party candidate's popular vote in the current election to the average popular vote of the two major party candidates in the election.
Although minor and new party candidates may supplement public funds with private contributions and may exempt some fundraising costs from their expenditure limit, they are otherwise subject to the same spending limit and other requirements that apply to major party candidates.
Convention funding
Each major political party is entitled to public funds (approximately $15 million in 2008) for its national Presidential nominating convention. A qualified minor party may become eligible for partial convention funding based on its Presidential candidate's share of the popular vote in the preceding Presidential election.Contributions may be accepted, however, for a special account maintained exclusively to pay for legal and accounting expenses associated with complying with the campaign finance law. Contributions to this account count against the donor's annual limit for the party. Certain supplemental services may also be provided by the host state and city governments and by local groups such as businesses and labor unions, such as transportation, and policing. Or a business may sell or rent chairs, podiums, tables or other equipment to the convention committee at discounted rates.
See also
- History of the Federal Election Campaign Act (FECA)
Source
Public Funding of Presidential ElectionsExternal links
- http://www.fec.gov/pages/brochures/pubfund.shtml
- http://www.unclefed.com/Tax-News/1990/Nr90-43.html
- http://www.haverford.edu/publications/fall97/campaignfinance.html
- http://www.cfinst.org/pr/111005.html
- http://www.opensecrets.org/2000elect/other/presfund/CRS_s95-824.htm