Such a soft money ban would be the keystone of comprehensive campaign finance reform legislation. There is a danger of corruption, or the appearance of corruption, when an individual, company or organization gives exorbitant sums of money to a candidate or a party. Soft money is defined as money not regulated under the Federal Elections Campaign Act. Examples of soft money are corporate and labor treasury funds and individual contributions that exceed federal contribution limits. The soft money loophole allows contributions from sources prohibited under federal law to affect federal races.
Soft money violates the intent of the Federal Election Campaign Act.
In the 1996 election cycle, soft money funds were used for television advertisements that inferred the election or the defeat of candidates for Congress. By not expressly calling for the election or defeat of a federal candidate, these advertisements were exempt from federal election law. The dilemma facing successful campaign finance reform is a divided government. With a Republican majority in the Congress and a Democratic President, a campaign finance reform bill must be bi-partisan in order to pass. Our task force is comprised of six Democrats and six Republicans.