There’s a ruffle of discontent among the corporate donors that fund Republican politicians complicit in the Trump Riots? at the U.S. Capitol on Jan. 6. But don’t be fooled. The real signal corporate American is sending is that not much will change. Republicans can probably count on as much corporate money as ever once the whole kerfuffle blows over.
The best way to rebuke and rein in the 147 antidemocratic Republicans in Congress who tried to block Joe Biden’s legitimate presidential win would be to stop donating money to them in perpetuity. As a further measure, corporate donors could set public standards for lawfulness and orderliness that politicians must meet to get their money. Encouraging insurrection, as the Odious 147 did, would be disqualifying. If powerful influence groups such as the U.S. Chamber of Commerce and Business Roundtable, plus every industry trade group, enforced such rules, most radical Republicans would have no choice but to heel.
‘Pausing’ donations
That’s not what most businesses are doing. Instead, the suddenly trendy move is to “pause” donations to all parties, without distinguishing between Republicans who oppose democracy and everybody else. The across-the-board pausers include corporate giants such as Goldman Sachs, Citibank, JP Morgan Chase, Facebook and Coca-Cola. Most haven’t said how long the pause will last, suggesting that when it seems safe to start giving again, they will.
Another group of pausers is taking more of a stand, by suspending donations specifically to the Odious 147. That group includes Marriott, Blue Cross Blue Shield, Dow Chemical, Commerce Bank and Yahoo Finance parent company Verizon. Targeting specific politicians sends a stronger message, but it won’t mean much if donations resume a few months from now. We just had an election and we’re at the very beginning of the 2022 election cycle, when politicians need the money the least. The two most prominent members of the Odious 147, Senators Josh Hawley of Missouri and Ted Cruz of Texas, aren’t up for reelection until 2024. They can easily survive without corporate contributions for the rest of the year, and maybe another year.
Hallmark has gone one step further. The greeting card company donated $7,000 to Hawley during the last election cycle, and $5,000 to Sen. Roger Marshall of Kansas, who, like Hawley, tried to block Biden’s electoral college win. Hallmark told both senators it wants the money back. That’s the spirit. Every corporate and industry donor should do the same, demanding every one of the Odious 147 return donations from the last two years. That would cause some quaking.
But it’s easier to take a measured, temporary stand, or none at all. The website Popular Information asked 144 companies that donated to the Odious 147 if they planned any changes. Only three companies, Marriott, Blue Cross and Commerce Bank responded at first. A few more have since joined the pausers, as it became clear this was a bandwagon they needed to board for a lap or two. But what we’re seeing is no groundswell. Most CEOs, even if they’re horrified by the Odious 147, probably hope they don’t have to take a stand that could provoke the sorts of criminals who stormed the Capitol.
Biggest corporate donors
These are the 10 biggest corporate donors to the Odious147, according to the Center for Responsive Politics: Koch Industries, AT&T, Comcast, Northrop Grumman, American Crystal Sugar, Lockheed Martin, Home Depot, UPS, Raytheon and Boeing. Industry groups give big too, including the American Bankers Association, the National Association of Realtors, the National Auto Dealers Association, the National Beer Wholesalers Association and the Credit Union National Association. The thing to watch isn’t whether they join the trend and suspend donations for a few months, to stay right with public opinion. The thing to watch is whether they meaningfully change donation patterns for a full two-year election cycle, in ways that can change the partisan makeup of government.
That would be very surprising. It’s very difficult for one company or even a handful of companies to withhold political donations if their competitors don’t do the same. Corporate lobbyists jostle constantly for favors tucked into legislation and, just as important, restrictive measures kept out. Republicans are the minority in the House and they will soon be in the Senate, too. Yet power changes hands frequently in Washington, and a back-bench legislator in 2021 could be a committee chair in 2023. Politicians have long memories and corporations take care not to embarrass them. That’s one reason many companies donate to both parties.
Republicans have another advantage: Despite the existential turmoil President Trump has caused, the GOP remains the only low-tax alternative to the Democrats. On that issue alone, most corporations have common cause with the Republican party. Calling out a few kooks might not be so bad, but the Odious 147 represent 56% of all the Republicans in Congress. Repudiating the 147 is repudiating the party itself. If not Republicans, who will look out for corporate America’s bottom line?
In the 2010 Citizens United decision, the Supreme Court obliterated limits on the amount of money wealthy donors and corporations can spend on political causes. That seemed like a victory for big business, and many analysts feared that limitless donations would let the corporate sector dominate policymaking. Corporate funding for political-action committees has since skyrocketed.
But all that money now makes companies targets themselves, and companies are loathe to offend anybody, even if it’s the right thing to do. So most companies will tiptoe across the wreckage of January 6 and hope everybody moves on. Nobody knows that more than the politicians with their hands out.
This story was updated on Jan. 12.
Rick Newman is the author of four books, including “Rebounders: How Winners Pivot from Setback to Success.” Follow him on Twitter: @rickjnewman. Confidential tip line: [email protected]. Click here to get Rick’s stories by email.
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