PACs (Political Action Committee) were established to contribute to candidates whom they believe will be favorable toward their goals. Each PAC has to register with FEC (Federal Election Committee) and has to report all of its expenditures also known as disclosure. During the 2004 election, FEC reported there were 3,868 PACs. A person can contribute money to any party or candidate, but there is a limitation on how much they can contribute. Each year, an individual can donate a maximum of $30,800 to a national political party. The ceiling is $2,500 per election by an individual to a candidate. Since the occurrence of Super PACs which can alter the landscape of money in political, and departure from previous restrictions financial contribution. Due to new laws by FEC, individuals, and corporations can contribute unlimited cash to super PACs. The main exclusion placed on Super PACs, is that they cannot coordinate directly with individual candidates. Another difference is that Super PACs can’t contribute directly to individuals like PACs are able to. The money Super PACs raise can be used only on creating TV ads or radio ads.
Stephen Colbert explained that PACs cannot accept any money from corporations. So when he creates Colbert PAC, Viacom, the parent company who owns Comedy Central, insisted that he shut down his PAC. If Colbert PAC had been created, Viacom would be accused of making illegal contributions. Stephen Colbert lawyer, Trevor Potter, mentioned that there is a loop hole around it. Colbert could create what is known as Super PAC. FEC responded by creating a new category called “independent expenditure-only committee”, which allows them to raise unlimited cash from individuals, corporations, and unions. There are few rules for Super PAC, they have to report donors to FEC, cannot give money directly to candidates, and cannot coordinate with campaigns. So Colbert created Colbert Super PAC to get Viacom off his back.
Viacom was threatening to shut down...