Billionaires pour nearly $2 billion into US election, amplifying calls for wealth taxes and campaign finance reform

This surge in billionaire campaign spending has ignited calls for wealth taxes on the ultra-rich and stringent limits on campaign contributions to protect the voices of ordinary Americans.

373
SOURCENationofChange

A recent analysis reveals that 150 of America’s wealthiest families have funneled an unprecedented $1.9 billion into the 2024 U.S. election cycle, raising alarms over the influence of ultra-wealthy donors on the democratic process. This surge in billionaire campaign spending—nearly 60 percent higher than the 2020 election—has ignited calls for wealth taxes on the ultra-rich and stringent limits on campaign contributions to protect the voices of ordinary Americans.

The report, released by Americans for Tax Fairness (ATF), shows that the top billionaire families have shattered campaign finance records, injecting $700 million more into federal elections than the previous cycle. “Billionaire campaign spending on this scale drowns out the voices and concerns of ordinary Americans,” said David Kass, ATF’s executive director. “It is one of the most obvious and disturbing consequences of the growth of billionaire fortunes, as well as being a prime indicator that the system regulating campaign finance has collapsed.”

According to the ATF report, most of the billionaire donations have bolstered Republican candidates, with 72 percent of contributions, totaling $1.36 billion, directed toward the GOP. The primary beneficiary of this spending has been former President Donald Trump, who has received over $450 million—three times more than Democratic candidate Kamala Harris, who attracted $143 million. The disparity in donations underscores a 75-25 percent split in favor of Trump.

The ATF analysis also indicates that Trump’s contributions from billionaire families stem from influential figures like Miriam Adelson, widow of casino mogul Sheldon Adelson, Tesla and SpaceX CEO Elon Musk, and far-right donors Richard and Elizabeth Uihlein. Musk alone has donated $133 million, of which $75 million was allocated to founding America PAC, a super PAC supporting Trump’s re-election bid.

The infusion of billionaire dollars has heightened concerns over the impact of vast wealth on American politics. “We need to rein in the political power of billionaire families by better taxing them and by effectively limiting their campaign donations,” said Kass. “Until we do both, we can only expect the influence of the super-rich over our politics and government to escalate.”

The $1.9 billion spent by the top 150 families in the 2024 election amounts to a mere 0.07 percent of their collective wealth of $2.67 trillion. “The median American household is worth about $200,000, making an equivalent political donation for them just $140,” noted the ATF report. This disparity highlights the disproportionate influence billionaires wield compared to ordinary families, whose combined financial power in the political arena falls short.

Moreover, ATF underscores that the billionaire spending tally is likely an under count due to so-called “dark money” contributions funneled through opaque channels, obscuring the identities of contributors. “These methods include donations to so-called ‘dark money’ groups that spend the money on outside efforts or in turn donate it to campaign committees; and contributions to super PACs that contribute to each other in long chains,” the report stated.

Trump’s campaign has explicitly advocated for extending policies that benefit the ultra-wealthy. These include preserving and expanding the tax cuts from 2017, which heavily favored corporations and wealthy individuals. The Associated Press recently reported that Trump’s donor base this cycle has shifted away from small-dollar contributions, which made up nearly half of his donations in 2020, to the wealthiest supporters in America.

During a recent campaign stop, Trump reportedly promised major oil executives deregulation and expanded drilling opportunities in exchange for a $1 billion campaign contribution, raising suspicions of quid pro quo arrangements under Senate investigation. The report’s findings have intensified the debate on the need for progressive taxation and campaign finance reform to prevent billionaires from shaping national policy for their own benefit.

Vice President Kamala Harris and the Biden administration have backed tax reforms targeting high-income earners. Harris endorsed Biden’s plan to impose taxes on unrealized stock gains for individuals with a net worth of $100 million or more. She has also championed a minimum income tax for billionaires and advocated for repealing Trump’s 2017 tax cuts. These initiatives aim to reduce the massive disparities in wealth and political influence.

Since the 2010 Citizens United ruling by the Supreme Court, super PACs have gained outsized influence in American elections. Super PACs can raise and spend unlimited funds independently, allowing billionaires to sidestep contribution limits and effectively extend campaign influence. Though super PACs are ostensibly separate from candidates’ campaigns, in practice, they often operate as informal campaign extensions.

The ATF report emphasizes that contributions from America’s wealthiest families are concentrated within a few powerful groups. Just ten billionaire families accounted for nearly $953 million in contributions this election cycle, with eight of those families supporting Republican candidates.

Billionaire Musk has come under scrutiny for allegedly manipulating the electoral process beyond traditional political donations. Musk’s America PAC introduced a $1 million daily lottery for voters in swing states who register and sign a petition supporting First and Second Amendment rights. Legal experts have raised concerns over potential violations of federal laws prohibiting payment for votes, prompting warnings from the Department of Justice.

The unprecedented level of billionaire contributions has raised alarms among advocates for fair representation in American democracy. ATF contends that these ultra-wealthy donors’ financial dominance is pushing the U.S. further from democratic principles. “Our democracy and the voices of working families depend on it,” ATF asserted, calling for the repeal of Citizens United and the institution of higher taxes on the super-rich to limit their influence.

“Billionaire political spending on this scale drowns out the voices and concerns of ordinary Americans,” ATF’s Kass concluded.

FALL FUNDRAISER

If you liked this article, please donate $5 to keep NationofChange online through November.

SHARE
Previous articleBiden administration ignores 500 reports of civilian deaths in gaza linked to US weapons supplied to Israel
Next articleA woman died after being told it would be a ‘crime’ to intervene in her miscarriage at a Texas hospital
Alexandra Jacobo is a dedicated progressive writer, activist, and mother with a deep-rooted passion for social justice and political engagement. Her journey into political activism began in 2011 at Zuccotti Park, where she supported the Occupy movement by distributing blankets to occupiers, marking the start of her earnest commitment to progressive causes. Driven by a desire to educate and inspire, Alexandra focuses her writing on a range of progressive issues, aiming to foster positive change both domestically and internationally. Her work is characterized by a strong commitment to community empowerment and a belief in the power of informed public action. As a mother, Alexandra brings a unique and personal perspective to her activism, understanding the importance of shaping a better world for future generations. Her writing not only highlights the challenges we face but also champions the potential for collective action to create a more equitable and sustainable world.

COMMENTS