February 27, 1974
Page 4474
Mr. BIDEN. Mr. President, I shall make one more observation. Beyond the matter of existing Presidential campaign fund, however, is a need for the public financing of additional campaigns for Federal office.
Public financing of Federal elections is the swiftest, surest way to purge our election system of the corruption that, whatever the safeguards, money inevitably brings.
Public subsidy would allow candidates, incumbents, and challengers alike, to compete more on the basis of merit than on the size of pocketbook, free from that potentially corroding dependence on personal family fortune or the gifts of special interest backers. If Theodore Roosevelt had his way, we would all do business with "glass pockets" – politics needs those glass pockets.
I have become convinced that effort to place ceilings on overall campaign expenditures, to prohibit certain groups from contributing funds, to restrict the size of campaign contributions – these and other devices, however well-intentioned and well-designed, are not fully effective.
Any public financing bill should include a central reporting system for contributions, provisions for financing of independent and minor party candidates, and modification of the franking privilege.
Mr. President, I ask unanimous consent that any statements made today on this subject by other Senators be printed immediately following the statements made by me and my colleague from
Delaware (Mr. ROTH).
The ACTING PRESIDENT pro tempore. Without objection, it is so ordered.
Mr. ROTH. Mr. President, I am happy to join the junior Senator from Delaware and Representative DU PONT to engage in an effort to make more people in the State of Delaware aware of the dollar checkoff provision for the next Presidential campaign fund. I can think of no way of better helping restore confidence in Government than to get millions of people throughout this great country to contribute financially to the next Presidential campaign.
I was concerned, upon going home and discussing the matter with a number of my fellow citizens, that they were unaware of this checkoff provision. It seemed that very few were aware of the program, even though it has been in effect for some time. As we all know, one reason is that the Internal Revenue tax forms last year did not highlight this provision and for that reason many people did not contribute as originally hoped.
However, I was pleased and much encouraged by the report that was made yesterday by the senior Senator from Massachusetts and the senior Senator from Pennsylvania which shows that the dollar checkoff is beginning to work. According to this joint report to the Senate, it now appears that, under current returns, approximately 14 percent of the taxpayers are now using the checkoff, with an average designation of $1.50 on each return. I say that this is encouraging because it is estimated that, based on these figures alone, approximately $50 million will be collected for the 1976 Presidential campaign.
According to the Washington Post, which published an editorial on this matter yesterday, it would mean that each principal candidate should receive approximately $21 million under the
formula that was established in this legislation, so that even under the present rate of contributions, it now appears that we are going to secure adequate funds for the 1976 Presidential race.
Nevertheless, I do not think we should be satisfied with this result. As I said earlier, I was concerned from my survey at home to find that many people were unaware of this program; and when I talked to them about it, they became very much interested in making their contribution. I am hopeful not only that the people of the State of Delaware will increase their contributions, but that the congressional delegation of other States will engage in a similar campaign to that of Delaware in order to make their people aware of the importance of this program, so that we will insure for the future that Presidential campaigns are financed not by a few but by millions of Americans throughout our great country.
If we can make this program succeed, we will have made a major campaign reform that will help restore public confidence not only in our political system, but also in the one who is elected to the highest office. A President who has been elected without large financial contributions from private sources is in a stronger position. He is more independent than those of both parties who have in the past had to rely on large contributions. This does not mean to say – and I think it is important to emphasize this – that all those who have been generous in past years in their contributions to a party do not expect any personal benefit, because this is not the case. The vast majority of donors, whether they gave large or small amounts, are loyal Americans, and they gave in the best interests of the country. This has been the democratic way. But because, as is always the case, a few have taken advantage of the political situation, it has raised serious problems of suspicion, favoritism and even political skullduggery. For that reason, I believe the dollar checkoff we now have on the books offers a major campaign reform. I like it, because it offers the individual to contribute in a voluntary way. It means involvement in the political systems by millions of Americans.
I am delighted to join my two colleagues from Delaware in an effort to publicize this program back home. I am confident that as a result of this effort, and because of the public's interest in campaign reform, we can make our contributions from the State of Delaware much larger than otherwise possible.
For the reasons I have set forth, I hope that Senators and other political figures from other States will encourage contributions from their taxpayers, so that we can make certain that the program does succeed, not only for the next Presidential campaign, but those of the future.
Mr. BIDEN. Mr. President, I yield to the distinguished Senator from Rhode Island.
Mr. PELL. Mr. President, I am indeed happy to join my colleagues in this discussion of the dollar checkoff for the financing of elections, and to urge that all American taxpayers take advantage of this provision in the law.
I wish to commend Senators BIDEN and ROTH for organizing this discussion, so that it may receive wide attention. And I wish especially to praise my senior colleague, Senator PASTORE, whose pioneering work and leadership, helped bring to reality the checkoff system in 1971.
It is particularly appropriate that this discussion take place not only at a time when our Nation's taxpayers are preparing their annual returns, but also at a time when the Senate Committee on
Rules and Administration has just reported to the Senate legislation which doubles the dollar checkoff in keeping with new and, I believe, immensely important concepts for the public financing of Federal elections.
Last September, as chairman of the Subcommittee on Privileges and Elections, I conducted 4 days of comprehensive public hearings on public financing. Many thoughtful reforms and recommendations were suggested to us. These were given shape in S. 2718, a bill which I introduced in November, which was reported forward to the Rules Committee, and which formed the basis for our careful deliberations.
As I have stated in the committee report, I believe this legislation will serve to remove "the temptation of seeking or of accepting the large compromising gift. It returns to our people, to our individual voters a rightful share and a rightful responsibility in the choosing of their candidates. And it can serve to establish that climate of public trust in elected officials which this country so earnestly desires."
Therefore, as we consider the dollar checkoff and its importance today in our election process, let us also consider its significance to future elections if this legislation is enacted, and when we truly enter that climate of trust and confidence.
Mr. President, may I also note that an amendment to the dollar checkoff which I offered in committee was adopted during our recent meetings. This would make the increased checkoff – $2 for a single taxpayer, $4 for husband and wife filing jointly – automatic, unless otherwise designated on the tax form.
There was much confusion in the filing of earlier returns in this regard. My amendment is aimed at ending this confusion and at placing emphasis on the positive attributes of the checkoff procedures.
Mr. ALLEN. Mr. President, will the Senator from Delaware yield for a comment?
Mr. BIDEN. I yield.
Mr. ALLEN. Mr. President, I am delighted that the Senators from Delaware are giving publicity to the so-called $1 checkoff.
I was delighted to hear the distinguished senior Senator from Delaware state that by the time of the 1976 Presidential election, there would be some $42 million in this fund, which is the amount that would be authorized for division between the two parties, if they elect to come under this plan. That would seem to the Senator from Alabama to make unnecessary two provisions of the new public campaign fund bill reported by the Committee on Rules and Administration. One provision is that the $1 checkoff would become a $2 and a $4 checkoff. That would be unnecessary. Two, the Rules Committee's bill has a provision stating that if a taxpayer fails to check off the $1, $2, or $4, he will be assumed to have agreed to have it withheld from his income tax.
Also, the report of the Rules Committee indicate that if taxpayers take advantage of the $2 checkoff, which is in effect a $4 checkoff, the cost to the Federal Treasury would be $234,740,000.
So it seems that those two provisions of the new bill would be unnecessary. I hope the Senator from Delaware will be aware of that when the time comes for a vote on the issue.
Mr. BIDEN. As a point of clarification, although what the Senator from Alabama has pointed out is correct – I hope we do not need to exercise those provisions – the fact remains that I do not think the impression should be left with the public that if more money is collected than is authorized under existing law, that will really cost the Federal Government. That goes back into the general revenues and is treated as regular tax dollars, if I am not mistaken. So it is not as if the money that is collected has to be spent.
Under the existing checkoff provision, it is a maximum of $24 million per major candidate and a ratio percentage considerably less than that for a party that gets between 5 and 25 percent of the vote. That is the amount of money that can be spent in a Presidential election, and it is directed under this legislation. I am not aware of any modification in the recent legislation which would change this provision, which is that the excess would go back into the general fund, to be distributed as any other tax dollar would be.
Mr. ALLEN. The full amount is a charge against the Treasury. It costs the individual taxpayer nothing, as the distinguished Senator has pointed out.
Mr. BIDEN. Mr. President, I yield to the distinguished Senator from Maine as much time as he may require.
Mr. MUSKIE. Mr. President, on behalf of myself and my distinguished colleague from Maine, Senator HATHAWAY, who is presiding, I compliment the two Delaware Senators for their interest in undertaking to lift this issue to visibility at this taxpaying time.
I think it is very appropriate that the Washington Post yesterday morning published an editorial on this subject. I wish to read just a paragraph or two from the editorial. It is titled "A Taxpayer's Reply to Political Corruption."
The first paragraph of the editorial reads:
In the second month of the campaign year 1974 the nation continues to agonize over political corruption and scandals in which secrecy and cold cash played devastating roles. At the same time, Congress continues to wrestle with campaign finance reform legislation, including important proposals for public financing of political campaigns. Yet, right now – without waiting for the denouement of these developments – every taxpaying citizen has an effortless way to help solve at least part of the problem with respect to the presidency – a means to make public campaign financing an attractive alternative to big private money in the presidential election of 1978 is already in the law. And the opportunity to make it work is easily available to everyone who is filing a federal income tax return.
Then, the last paragraph of the editorial states:
We believe that the checkoff deserves strong public support if it is to cut down the influence of big money on presidential campaigns – to help diminish the illegalities and improprieties which distinguished the 1972 election in general, and the campaign to re-elect President Nixon in particular. The checkoff plan can have a healthy, effect in politics if enough taxpayers decide to
make it work by seeing to it that their returns are duly marked.
I commend my distinguished colleagues from Delaware for arranging this colloquy to alert taxpayers to the possibility of making a "reply to political corruption."
Mr. President, the dollar checkoff will this year give every individual American taxpayer the opportunity to participate in a major reform of Presidential campaign financing. Through the dollar checkoff on every individual tax return, American taxpayers have the option of designating $1 of his or her taxes toward financing the next Presidential general election.
The individual taxpayer pays no more in taxes by using the dollar checkoff. But each dollar designated adds to the funds available for the Presidential election campaign fund, to be used for public financing of the Presidential general election.
If Americans make the dollar checkoff a success, they can help the next Presidential election satisfy the highest of democratic ideals. The dollar checkoff, as an experiment with public campaign financing, has the promise of making the general Presidential election entirely a public process – free from the influence of special interests through large private contributions. And freeing political campaigns from reliance on private fundraising is essential to public confidence in our democracy.
Using the dollar checkoff is simple. On each individual income tax return this year is a well identified box to check to designate $1 of Federal taxes, with separate $1 designations for the husband and wife on a joint return, to the Presidential election campaign fund. After appropriations by Congress, the amounts in this fund will be available to pay the costs of the general election campaigns of Presidential candidates, up to specified limits. Under the formula for making these funds available, candidates of major parties – which received more than 25 percent of the vote in the last election – will receive 15 cents per voter, or about $21 million based on 1972 statistics. Presidential candidates of minor parties or new parties – which receive over 5 percent of the vote in the most recent or current election – are eligible to receive a proportionate share of funds, based on the number of votes cast for them.
But to take advantage of public Presidential campaign funds, candidates in the general Presidential election must renounce private fundraising. The influence of private money – or the suspicion of that influence – would be removed from their campaigns.
Public financing for the general Presidential election will only be a success, however, if the American taxpayer uses the dollar checkoff. And the evidence so far is that the dollar checkoff is in fact working. As of February 15, about 14 percent of individual taxpayers – 1.4 million of the 9.8 million tax returns processed – used the dollar checkoff. Of these returns, 640,000 – or about 6.5 percent of all returns processed – were joint returns designating $2 for the Presidential election campaign fund. If this pattern holds true for all 1973 tax returns filed, a total of about $16 million will be designated for the Presidential election campaign fund from 1973 taxes. At this rate, we can hope to have about $60 million in the fund for the next Presidential election – enough for the candidates to present their case to the American people without private fundraising and the dangers it presents.
Public campaign financing can safeguard our faith in the process for choosing our political leaders. The dollar checkoff gives all of us the opportunity to endorse this basic reform to make democracy work better.
Americans' frustration with the political process is increasing every day.
Mr. President, I am delighted to join my distinguished colleagues from Delaware in promoting awareness of this opportunity.
Mr. BIDEN. I thank the distinguished Senator from Maine. I am delighted that he has pointed out something that I was unaware of until a week or so ago, and that is that the $1 checkoff can be $2 because a husband and wife in filing a joint return are each entitled to the $1 checkoff, which makes it a $2 checkoff. That point should be emphasized.