'''U.S. Chamber of Commerce''', a powerful business [[lobbying]] group in the United States that "has become a fully functional part of the partisan [[Republican Party|Republican]] machine" since CEO and president [[Thomas J. Donohue]] took office in 1997. Prior to Donohue's tenure, the Chamber "used to be a [[trade association]] that advocated in a bipartisan manner for narrowly tailored policies to benefit its members." <ref>Matt Stoller, [http://www.mydd.com/story/2006/12/13/14220/862 "Tom Donahue, the 'Gang of 6' and Red America,"] ''MyDD'', December 13, 2006.</ref> The Chamber's 2010 budget is approximately $200 million, but as a trade organization, its donors can remain anonymous. <ref name= "NY Times Oct 22"></ref>
According to thier website, the U.S. Chamber of Commerce "has one overarching mission—to strengthen the competitiveness of the U.S. economy.<ref>U.S. Chamber of Commerce, [http://www.uschamber.com/about About],] USChamber.com.</ref> It describes itself as "the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region."<ref name="fibre">Fibre2fashion.com, [http://www.fibre2fashion.com/news/association-news/us-chamber/newsdetails.aspx?news_id=42835 "USA : Chamber backs fight against internet piracy,"] U.S. Chamber of Commerce (profile via Fibre2Fashion.com), October 19, 2007.</ref> Despite these claims, the ''New York Times'' reported in October 2010 that half of the Chamber's $140 million in contributions in 2008 came from just 45 big-money donors, many of whom enlisted the Chamber's help to fight political and public opinion battles on their behalf (such as opposing financial or healthcare reforms, or other regulations). <ref name= "NY Times Oct 22"> ERIC LIPTON, MIKE McINTIRE and DON VAN NATTA Jr., [http://www.nytimes.com/2010/10/22/us/politics/22chamber.html?_r=1&pagewanted=2 Top Corporations Aid U.S. Chamber of Commerce Campaign], ''The New York Times'', October 21, 2010.</ref> The Chamber is "dominated by [[oil industry|oil companies]], [[pharmaceutical industry|pharmaceutical giants]], automakers and other polluting industries," according to [[James Carter]], executive director of the [[Green Chamber of Commerce]].<ref>Tom Lochner, [http://www.contracostatimes.com/news/ci_7247780 "Chamber hopes local promotion of green business produces national results,"] ''ContraCostaTimes'', October 22, 2007.</ref>
Despite these claims, the ''New York Times'' reported in October 2010 that half of the Chamber's $140 million in contributions in 2008 came from just 45 big-money donors, many of whom enlisted the Chamber's help to fight political and public opinion battles on their behalf (such as opposing financial or healthcare reforms, or other regulations). <ref name= "NY Times Oct 22"> Eric Lipton, Mike McIntire, and Don Van Natta Jr., [http://www.nytimes.com/2010/10/22/us/politics/22chamber.html?_r=1&pagewanted=2 Top Corporations Aid U.S. Chamber of Commerce Campaign], ''The New York Times'', October 21, 2010.</ref> The Chamber is "dominated by [[oil industry|oil companies]], [[pharmaceutical industry|pharmaceutical giants]], automakers and other polluting industries," according to [[James Carter]], executive director of the [[Green Chamber of Commerce]].<ref>Tom Lochner, [http://www.contracostatimes.com/news/ci_7247780 Chamber hopes local promotion of green business produces national results"] ''ContraCostaTimes'', October 22, 2007.</ref>
==Ties to the American Legislative Exchange Council==
===2012 Presidential elections===
As of November 2nd, 2012 the U.S. Chamber of Commerce has spent $35.3 million towards influencing the elections, $27 million has been used in attacking Democrats.<ref>OpenSecrets.org Center for Responsive Politics, [http://www.prwatchopensecrets.org/newsorgs/2012/11/11840/outside-election-spending-400-2008 summary.php?id=D000019798 U.S. Chamber of Commerce Profile.] , organizational profile - via opensecrets.org, Accessed 11/2/2012.</ref> They have heavily backed a slue of Republicans, including Rep. Todd Akins (R-Mo), Rep. Marie Buerkle (R-NY), and [http://thinkprogress.org/election/2012/10/25/1092051/chamber-of-commerce-spends-millions/ many others].
===2010 Midterm Elections===
The U.S. Chamber played a major role in the Republican victories in the 2010 midterm Congressional elections, promising to spend $75 million (and reporting only $32 million), and helping to organize and coordinate spending by other "outside interest groups" like [[American Crossroads]] and [[American Action Network]] <ref>David Fredosso, [http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/us-chamber-of-commerce-aims-to-spend-75m-on-midterm-elections-97667269.html U.S. Chamber Aims to Spend $75 Million on Midterm Elections], Washington Examiner, July 2, 2010. </ref> In a blog post the night before the election, the Chamber stated it “had been a game-changing political force in these midterms. We’ve engaged in tight, competitive races; and we’ve altered them.”<ref>Chamber Post, [http://www.chamberpost.com/2010/11/on-the-verge-of-a-new-beginning-for-business.html On the Verge of a New Beginning for Business], Chamber Post organizational blog, November 1, 2010.</ref>
The Chamber claimed it offered support to all pro-business candidates, regardless of party affiliation. However, according to a report from the union-backed Chamber Watch, "[i]t worked almost exclusively to elect Republicans in the powerful Senate, giving one lone endorsement to a Democrat, West Virginia’s Joe Manchin, on whom it made no expenditures. On the House side, the Chamber created an appearance of bipartisanship by spending on behalf of eleven Democrats. But the Chamber’s support for Democratic members was razor-thin, and sometimes, the Chamber withheld support altogether, even where Democratic members worked hard to earn the Chamber’s approval." <ref name= "chamber watch report"> November 2010, [http://fixtheuschamber.org/sites/default/files/a_u.s._chamber_watch_report_-_november_2010_0.pdf US Chamber of Commerce: Leading the Charge in Electing a Republican Congress], a report by U.S. Chamber Watch.</ref>
According to the U.S. Chamber Watch [http://fixtheuschamber.org/sites/default/files/a_u.s._chamber_watch_report_-_november_2010_0.pdf report]:
:"The U.S. Chamber first began to coordinate massive Republican resources when its general counsel, Steven Law, met with Ed Gillespie, Republican political strategist and former Counselor to President George W. Bush. According to the Associated Press, Law met with Gillespie in October of 2009, “calculating how to exploit the voter anger they had seen erupt at Democratic town hall meetings that summer.” <ref>Jim Kuhnhenn, [http://www.googleboston.com/hostednewsnews/apnation/articlearticles/2010/10/26/big_money_outside_groups_spending_for_republicans/ALeqM5idlgcpzokxQM-Dde2ME1MFJUaj6Q?docId=464f77259c2a4642a557cc7acec5a39a Big money: Outside groups spending for Republicans], Associated PressBoston.com, October 26, 2010.</ref>
:It was at this meeting that they conceived of [[American Crossroads]] an organization, that according to its website, is dedicated to “renewing America’s commitment to individual liberty, limited government, free enterprise and a strong national defense.” Law left the U.S. Chamber to serve as the group’s CEO.
According to Think Progress:
:“At every turn, from the operatives running the two organizations to their targeted races to their media firms, American Crossroads and the U.S. Chamber of Commerce are bound to one another…the two groups have exhibited uncanny coordination in their election targeting. In a number of Senate races, the Chamber and American :Crossroads coordinated their advertisements – one group put up ads in a race as the other group pulled its own down – in :order to ensure attack ads were always running against the Democratic candidate.” <ref> Scott Keyes, [http://thinkprogress.org/2010/10/07/chamber-commerce-crossroads/ Kissing Cousins: How The U.S. Chamber Of Commerce And American Crossroads Hook Up To Elect Republicans] , Think Progress, October 7, 2010. </ref>
==== Post-Election Backlash ====
The U.S. Chamber's partisan, corporate-funded (and often [http://mediamattersaction.org/search/tag/u_s__chamber_of_commerce untrue]) campaign attacks have compelled many local Chambers of Commerce to disassociate from the U.S. Chamber. <ref>Elspeth Reeve, [http://www.theatlanticwire.com/opinions/view/opinion/Local-Branches-Leave-Chamber-of-Commerce-as-It-Lurches-Rightward-6085 Local Branches Leave Chamber of Commerce as it Lurches Rightward], The Atlantic Wire, Dec. 07, 2010 (compiling stories from several sources).</ref> Despite the U.S. Chamber's attempts to portray itself as a community of small businesses and local Chambers of Commerce, the interests the U.S. Chamber served in the 2010 elections were those of its large corporate donors. More than 40 local chambers issued statements during the campaign distancing themselves from the U.S. Chamber, including chambers in the "battleground states" of Iowa and New Hampshire. Some chambers are considering what Politico calls the "extraordinary" step of ending their affiliation with the U.S. Chamber and quitting in protest. <ref> Jeanne Cummings, [http://www.politico.com/news/stories/1210/46049.html Angry Member Groups Shun U.S. Chamber of Commerce], Politico, Dec. 7, 2010, accessed Dec. 8, 2010. </ref>
==Accusations of tax fraud and money laundering ==
===2010 Complaint===
In September, 2010, two national watchdog groups, [[U.S. Chamber Watch]] and [http://www.velvetrevolution.us/stop_chamber/ StopTheChamber.com], filed complaints with the U.S. [[Internal Revenue Service]] asking the agency to investigate the [[U.S. Chamber of Commerce]] for criminal fraud and money laundering. The groups allege that the Chamber illegally funneled donations from a wealthy charitable foundation into its political battles. Chamber Watch said that $12 million of an $18 million donation that the wealthy [[Starr Foundation]] [http://www.velvetrevolution.us/stop_chamber/images/irs_complaint_9_10_10.pdf gave] (pdf) gave to the National Chamber Foundation was in the form of loans that have never been repaid. Chamber Watch says the money was diverted to finance political causes, including [[tort reform]], to shield companies like [[AIG]] from liability lawsuits. The [[Starr Foundation]] was founded by [[Cornelius Vander Starr]], the insurance entrepreneur who also founded [[AIG]]. The Foundation's Chairman of the Board of Directors is [[Maurice R. Greenberg]], former President and CEO of AIG. The Foundation's Director (and Treasurer) is Howard I. Smith, AIG's former Chief Financial Officer. StopTheChamber.com says it was contacted by a Chamber whistleblower [http://www.velvetrevolution.us/stop_chamber/images/COC_DOJ_Letter8410.pdf who described] (pdf) how Chamber CEO [[Tom Donohue]] is "scamming [business] clients to serve his own interests rather than the interests of the business community." The insider compared Donohue to [[Jack Abramoff]] and [[Bernie Madoff]]. He also alleged that Donohue does not fear the [[Federal Elections Commission]] or Congress, and has a plan set up to attack the [[U.S. Department of Justice]] if the agency ever tries to investigate him.<ref>National Desk , [http://www.americanchronicle.com/articles/view/185296 Watchdog Groups Request Criminal Fraud and Money Laundering Investigations against The U.S. Chamber], ''American Chronicle'', September 15, 2010.</ref>
The September charge echoed similar charges made earlier in the year, in January, 2010, that six of the largest health insurance companies in the U.S. had been secretly funneling millions of dollars to the U.S. Chamber of Commerce to oppose health reform. The total amount in this instance was estimated at between $10 million and $20 million. According to a report in the ''National Journal'' online, the money was used "to help underwrite tens of millions of dollars of television ads by two business coalitions set up and subsidized by the chamber."<ref>Staff reports , [http://web.archive.org/web/20101007040736/http://www.appomattoxnews.com/2010/u-s-chamber-of-commerce-charged-with-money-laundering-tactics.html U.S. Chamber of Commerce Charged with Money Laundering Tactics], Appomattox News- Accessed via Wayback Machine, January 15, 2010</ref><ref>Peter H. Stone [http://web.archive.org/web/20100113034144/http://undertheinfluence.nationaljournal.com/2010/01/health-insurers-funded-chamber.php Health Insurers Funded Chamber Attack Ads], NationalJournal.com- accessed via Wayback Machine, January 12, 2010.</ref>
===2006 Public Citizen Complaint===
On October 31, 2006, ''[[Public Citizen]]'' filed a complaint<ref>Public Citizen, [http://www.citizen.org/documents/ACF1F3E.pdf Complaint filed with the IRS], organizational complaint,] October 31, 2006, by ''Public Citizen''.</ref> with the [[IRS]] asking it to investigate whether the Chamber and "its affiliated Institute for Legal Reform (ILR) failed to report millions in taxable spending from 2000 to 2004 intended to influence state-level attorney general and supreme court races and federal races around the country."<ref name="shell">Public Citizen, [http://www.citizen.org/pressroom/release.cfm?ID=2305 News Release: "U.S. Chamber of Commerce Failed to Report Electioneering Spending and Grants, Public Citizen Asks IRS to Investigate. Chamber Spent Millions to Influence State and Federal Races,"] ''Public Citizen'', news release, October 31, 2006.</ref>
It also asked the IRS to investigate whether Chamber and the ILR, "which are two separate legal entities, combined funds in a shared bank account to hide accurate reporting of investment or interest income for tax avoidance. ... Court records, internal corporate documents and media reports indicate that the Chamber and the ILR engaged in a massive campaign to affect the outcome of state and federal races through direct expenditures and grants made to organizations that carried out the Chamber’s wishes."<ref name="shell"/>