Americans for Tax Fairness on Monday released the group's latest report on "the threat posed to American democracy by billionaire political spenders," revealing that last year their collective congressional campaign contributions topped $1 billion for the first time.
"That 'Billionaires' Billion' was almost three-quarters more than the tycoons' total spending on the last midterms, in 2018, and 300 times more than what billionaires spent on congressional races as recently as a dozen years ago," states the ATF report.
"The Billionaires' Billion—contributed by fewer than 500 individuals—represented about one of every nine dollars raised from all sources in the 2022 elections," the analysis continues, noting that 15 of the nation's richest households were responsible for $658 million, or nearly two-thirds, of the contributions.
"Nearly 80% of billionaire cash—$782 million—went to outside campaign groups," the document adds, and in eight key races that decided which party controlled the Senate, "billionaire donations supported Republican candidates over Democratic ones by almost a 5-1 margin."
Democrats initially secured a slim majority in the Senate—including the two Independents who caucus with the party—after Sen. Raphael Warnock (D-Ga.) won a runoff against GOP challenger Herschel Walker in December, but that victory was quickly tempered when Democratic Sen. Kyrsten Sinema of Arizona became an Independent just days later.
Although Republicans lost five of the eight key Senate races, the ATF report explains, not only did billionaire spending encourage candidates to focus on positions favored by their wealthy benefactors, but also, in North Carolina, Ohio, and Wisconsin—won by GOP Sens. Ted Budd, J.D. Vance, and Ron Johnson, respectively—the superrich overwhelmingly backed the party and "Republican billionaires outspent the much smaller pool of Democratic billionaires by at least 9-to-1 in each race."
The GOP did seize control of the House of Representatives in last year's midterms—enabling their efforts to quash recent legislative victories and priorities of congressional Democrats and President Joe Biden, including the ongoing battle over whether to raise the debt ceiling to avert the first-ever U.S. default, which economists warn would be catastrophic for the global economy.
The current makeup of Congress makes it exceptionally difficult to pass any legislation—including campaign finance reforms that critics of billionaires' influence on the American political system have increasingly demanded since the U.S. Supreme Court's 2010 Citizens United v. Federal Election Commission ruling, which loosened restrictions on political spending.
"Billionaires spending a billion dollars on a shopping spree for democracy should wake us all up to the threat posed by nearly unlimited wealth applied without limits to our elections," ATF executive director David Kass declared Monday. "There are well-known solutions to the problem, including overturning Citizens United and effectively taxing the biggest sources of billionaire wealth, which now often go lightly taxed if at all."
"Those tax reforms include taxing wealth like work by equalizing the top tax rate on investment and wage income, and closing the stepped-up basis loophole that allows investment gains to go untaxed forever," Kass added. "All that's needed is for Congress to heed the call of the American people to unrig a corrupt system."
In March, Biden unveiled a budget blueprint—which included various tax reforms—that then-ATF executive director Frank Clemente said "plainly shows whose side he's on: working families struggling with the high cost of healthcare, childcare, housing and more—not the wealthy elite and their big corporations rolling in dough and dodging their fair share of taxes."
However, the GOP continues to make clear that the party only plans to serve the rich with tax breaks, not force them to pay more. Citing three unnamed sources, The Washington Postreported Monday that "the White House recently gave Republican congressional leadership a list of proposals to reduce the deficit by closing tax loopholes during the ongoing negotiations over the federal budget and the debt ceiling. But Republican negotiators rejected every item."
"On a phone call last week, senior White House officials floated about a dozen tax plans to reduce the deficit as part of a broader budget agreement with House Republicans, including a measure aimed at cryptocurrency transactions and another for large real estate investors," according to the Post. "They were all swiftly rejected by the GOP aides on the call."