Description

Executive Summary

Congress is now considering new regulations

on campaign finance. Although their goal of preventing

corruption or its appearance is important,

those restrictions may reduce the competitiveness

of elections.

Many states have enacted regulations on campaign

finance, including limits on how much can

be given to political parties. A close analysis of

those state limits shows that restrictions on how

much parties can raise and contribute to their

nominees hinder the ability of candidates, especially

those in close races, to raise money. Such

restrictions do not hurt incumbents as much as

they do challengers, since sitting lawmakers can

attract more money from interest groups and

individual donors. State regulatory limits on parties

reduce the vote totals of challengers, thereby

reducing the competitiveness of elections.