Koch Brothers

8/2/2019 Koch Brothers

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The Koch Brothers

What You Need to Know About the Financiers o the Radical Rig

Tony Carrk April 2011


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The Koch BrothersWhat You Need to Know About the Financiers

o the Radical Right

Tony Carrk April 2011


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1 Introduction and summary

3 Who are the Koch brothers and Koch Industries?

8 Bankrolling the right wing

12 Using Americans for Prosperity to stimulate the Tea Pa

14 Bankrolling and influencing the U.S. Congress

17 Bankrolling state politicians

19 The real Koch brothers philosophy

25 Whats next?

26 Endnotes

27 About the author and acknowledgements

Contents


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1 Cener or Amercan Progress Acon Fund |the Koch Brohers

Introduction and summary

Any atemp o undersand he modern conservaive movemen will evenually

lead o billionaire brohers Charles and David Koch. Using heir vas wealh and

connecions, he Koch brohers are key players in bankrolling righ-wing poliical

acion groups, hink anks, and individual poliicians, using his array o poliical

power o advance heir ideological agenda o limied governmen and less regula-

ion. Chances are hey are par o any recen righ-wing atack you have seen laely.

Te Koch brohers, leaders o a vas amily oil-and-gas conglomerae, use his

poliical nework o pursue heir righ-wing agenda a nearly every level o

governmen. Wheher hey are conribuing millions in campaign conribuions,

spending millions on lobbying, or invesing millions in righ-wing hink ank and

advocacy groups, he Koch brohers inuence is pervasive.

Charles and David Koch would preer o keep heir inuence behind he scenes

bu recen reporing by he Cener or American Progress Acion Funds Tink

Progress and a variey o media and advocacy organizaions shed ligh on he

enormous breadh and reach o heir nework. Tis repor will showcase he play-

ers involved in he Koch nework, where hey operae, and he vas amouns o

money involved. Te repor also exposes he Koch righ-wing ideological agenda

ha oen proecs heir business ineress a he expense o everyone else.

Bu cuting o he chase, here is a brie summary o he repors ndings:

Te Koch brohers, whose wealh, when combined, is he ourh highes in he

naion, run one o he larges privae companies in he counry. Koch Indusries

is involved in indusries ranging rom oil and gas, rening and chemicals, miner-als, erilizers, oresry, consumer producs, polymers and bers, and ranching.

Tey have operaions in 45 saes.


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Te Koch brohers use heir considerable wealh o bankroll he righ wing,

including he ea Pary. Tis serves he purpose o urhering no only heir

righ-wing ideology bu also heir botom line. Koch Indusries has a lo o gain

rom guting governmen oversigh and elecing candidaes who oppose govern-

men regulaion, especially in he oil-and-gas indusry.

Chances are he Koch brohers are par o any recen righ-wing atack as olae as hey have ough healh reorm, Wall Sree reorm, collecive bargaining

righs, and eors o curb climae change, o name jus a ew.We have idenied a leas $85 million he Koch brohers have given o a leas

85 righ-wing hink anks and advocacy groups over he pas decade and a hal. Teir main advocacy group, Americans or Prosperiy, has chapers in 32 saes and

spen $45 million in he las elecion, predominanly o help elec epublicans. Te Kochs donaed direcly o 62 o he 87 members o he House GOP

reshman class. Te Koch brohers are acive a he sae level, spending $5.2 million on can-

didaes and ballo measures in 34 saes since 2003. Tey donaed direcly o13 governors ha won elecion las year.

Te Kochs are no going away. In ac, hey have already pledged o raise

$88 million or he 2012 elecion and have sared scheduling evens or

poenial epublican presidenial candidaes.

As his repor will demonsrae, he Koch brohers nework works hard o advance

a righ-wing ideological agenda ha helps heir businesses reap more pros a

he expense o our environmen, our economy, and he American middle class.

Undersanding how hey operae is he rs sep in counering heir eors o

reshape our naions laws o bene he wealhy even more han hey do oday.

The Koch brothers issue agenda

A list o the top policy issues in which the Koch brothers are engaged

Issue Koch brothers fighting?

Repealing health reorm Yes

Denying climate change Yes

Fighting Wall Street reorm YesDismantling collective bargaining rights Yes

Fighting reductions in carbon emissions Yes

Keeping corporate money in elections Yes

Fighting Internet neutrality Yes
http://americansforprosperity.org/issues/health-welfarehttp://www.greenpeace.org/usa/en/campaigns/global-warming-and-energy/polluterwatch/koch-industries/http://www.americansforprosperity.org/011411-letter-support-rep-bachmanns-dodd-frank-repeal-bill-hr-87http://www.americansforprosperity.org/walker/http://climateprogress.org/2010/09/04/koch-industries-valero-tesoro-proposition-23/http://thinkprogress.org/2011/01/10/citizens-united-koch/http://www.youtube.com/watch?v=07teCE1EWZYhttp://www.youtube.com/watch?v=07teCE1EWZYhttp://thinkprogress.org/2011/01/10/citizens-united-koch/http://climateprogress.org/2010/09/04/koch-industries-valero-tesoro-proposition-23/http://www.americansforprosperity.org/walker/http://www.americansforprosperity.org/011411-letter-support-rep-bachmanns-dodd-frank-repeal-bill-hr-87http://www.greenpeace.org/usa/en/campaigns/global-warming-and-energy/polluterwatch/koch-industries/http://americansforprosperity.org/issues/health-welfare


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Who are the Koch brothers

and Koch Industries?

Forbes magazine ranks Charles and David Koch he ourh-riches people in he

world, wih a combined ne worh o$44 billion. Charles is he chie execuive o

Koch Indusries, Inc., he amily s oil-and-gas conglomerae sared by heir aher,

Fred C. Koch. David is vice presiden o he company.

Te billionaire brohers joke ha Koch Indusries is he bigges company you

never heard o, bu i is now he second-larges privae company in he Unied

Saes wih an esimaed $100 billion in sales. I owns numerous companies inindusries ranging rom oil and gas, rening and chemicals, minerals, erilizers,

oresry, consumer producs, polymers and bers, and ranching. Koch Indusries

and is subsidiaries have operaions in 45 saes (see map on page 6) and a pres-

ence in 60 counries. Some o he companies include:

Flin Hills esources, LP Koch Supply & rading, LP Koch Pipeline Company, LP Georgia-Pacic INVISA B.V. Koch Chemical echnology Group, LLC Koch Mineral Services, LLC Maador Catle Company

Each o hese unis o he Koch business empire pros rom he wo brohers ideo-

logical agenda, which is why a quick bu deailed look a each o hem is imporan.

Flint Hills Resources, LP

Flin Hills esources isa Wichia, Kansas-based rening and chemical company hahas a combined crude oil processing capaciy o more han 800,000 barrels o oil per

day. Flin Hills has expanded is operaions hrough capial projecs and acquisiions
http://www.youtube.com/watch?v=07teCE1EWZYhttp://www.youtube.com/watch?v=07teCE1EWZYhttp://www.youtube.com/watch?v=07teCE1EWZYhttp://www.youtube.com/watch?v=07teCE1EWZYhttp://www.youtube.com/watch?v=07teCE1EWZYhttp://www.youtube.com/watch?v=07teCE1EWZYhttp://www.youtube.com/watch?v=07teCE1EWZYhttp://www.youtube.com/watch?v=07teCE1EWZYhttp://www.youtube.com/watch?v=07teCE1EWZYhttp://www.forbes.com/2011/03/09/billionaires-20-richest_slide_19.htmlhttp://www.portfolio.com/executives/features/2008/10/15/Profile-of-Billionaire-David-Koch/index3.htmlhttp://www.portfolio.com/executives/features/2008/10/15/Profile-of-Billionaire-David-Koch/index3.htmlhttp://kochind.com/factsSheets/KochFacts.aspxhttp://www.kochind.com/locations.asphttp://kochind.com/factsSheets/KochFacts.aspxhttp://kochind.com/factsSheets/KochFacts.aspxhttp://www.kochind.com/locations.asphttp://kochind.com/factsSheets/KochFacts.aspxhttp://www.portfolio.com/executives/features/2008/10/15/Profile-of-Billionaire-David-Koch/index3.htmlhttp://www.portfolio.com/executives/features/2008/10/15/Profile-of-Billionaire-David-Koch/index3.htmlhttp://www.forbes.com/2011/03/09/billionaires-20-richest_slide_19.html


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worh more han $5.3 billion since 2002. I markes a ull slae o peroleum prod-

ucs, including asphal, base oils, gasoline, je uel, diesel, and heaing oils.

Te Koch uni operaes rening complexes in Alaska (Norh Pole), Minnesoa

(Pine Bend eneryin osemoun), and exas (Corpus Chrisi). In addiion,

Flin Hills esources also operaes he Wisconsin pipeline, which carries producsrom he companys win Ciies-area renery o erminals in Juncion Ciy, Waupu,

Madison, and Milwaukee, and operaes he MSP Airpor line ha delivers je uel

o he Minneapolis/S. Paul airpor. In exas, he uni operaes he exas Pipeline

sysem, which runs rom Corpus Chrisi o he San Anonio, Ausin, Basrop, Waco,

and Dallas/For Worh markes, and he DFW Airpor line ha delivers je uel

rom he For Worh-area erminal o he Dallas/For Worh airpor.

Flin Hills also operaes ehanol plans in Menlo and Shell ock, Iowa, ha pro-

duce 220 million gallons o ehanol annually. I is a leading producer o chemicals

and relaed producs wih manuacuring aciliies in Illinois, Michigan, and exas.And i has an ineres in a base lube oil aciliy in Louisiana as well as ineress in a

biodiesel eedsock developmen company in Caliornia. According o iswebsie,

Flin Hills produces uels ha power mos o exas, he Midwes, and he Alaska

inerior. Te asphal i produces is used across he Midwes and Alaska.

Koch Supply & Trading, LP

Koch Supply & rading provides risk managemen in crude oil, rened pero-

leum producs, naural gas, and oher commodiies. Te company is an indirec

subsidiary o Koch Indusries. Koch Supply & rading has locaions in Houson,

New York Ciy, and Wichia as well as London, Geneva, Singapore, India, and he

Neherlands. According o is websie, producs raded by Koch Supply & rading

include: crude oil; rened producs and derivaives; naural gas liquids; naural

gas, power, and emissions; meals; nancials including oreign currency, ineres

raes, and exchange-raded commodiies; and reigh.

Koch Pipeline Company, LP

Koch Pipeline Company is an indirec, wholly owned subsidiary o Koch

Indusries. Many o he pipelines and erminal aciliies i operaes are owned by

Flin Hills esources. Koch Pipeline owns or operaes 4,000 miles o pipeline o
http://www.fhr.com/upload/FHRFacts.pdfhttp://www.fhr.com/upload/FHRMinnesotaFacts.pdfhttp://www.kochpipeline.com/AboutUs/our_operations.asphttp://www.fhr.com/upload/FHRTexasFacts.pdfhttp://www.fhr.com/about/default.aspxhttp://www.kochind.com/factssheets/KochFacts.aspxhttp://www.kochoil.com/default3.asp?Section=Locations&location5=herehttp://www.kochoil.com/default3.asp?Section=Services&location3=herehttp://www.kochind.com/factssheets/KochFacts.aspxhttp://www.kochind.com/factssheets/KochFacts.aspxhttp://www.kochoil.com/default3.asp?Section=Services&location3=herehttp://www.kochoil.com/default3.asp?Section=Locations&location5=herehttp://www.kochind.com/factssheets/KochFacts.aspxhttp://www.fhr.com/about/default.aspxhttp://www.fhr.com/upload/FHRTexasFacts.pdfhttp://www.kochpipeline.com/AboutUs/our_operations.asphttp://www.fhr.com/upload/FHRMinnesotaFacts.pdfhttp://www.fhr.com/upload/FHRFacts.pdf


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ranspor crude oil, rened peroleum, naural gas liquids, and oher chemicals. I

operaes proprieary and common carrier crude oil pipelines ha deliver o ren-

ing ceners in he Midwes and exas.

Koch Pipeline operaes he 540-mile Souh exas sysem, which moves domes-

ic crude oil o Corpus Chrisi. And unis o he Koch subsidiary own pieces ooher pipelines. For insance, he Koch Alaska Pipeline owns 3 percen o he

rans-Alaska Pipeline Sysem, and anoher Koch company owns 28 percen o he

Colonial Pipeline Company.

Georgia-Pacific

Georgia-Pacic became a wholly owned subsidiary o Koch Indusries in 2005

aer he wo brohers paid $21 billion o ake over he company and ake i

privae. Georgia-Pacic is a manuacurer and markeer o issue, packaging,paper, pulp, and building producs and relaed chemicals. Georgia-Pacics Norh

Americanbrands include: Quiled Norhern (oile paper), Angel So (oile

paper), Brawny (paper owels), Sparkle (paper owels), So n Genle (oile

paper), Mardi Gras (paper owels), Vaniy Fair (paper napkins), and he Dixie

brand o ableop producs.

Georgia-Pacic has aciliies in 27 saes, including 25 in Georgia; 18 in Florida;

14 in Mississippi; 13 in Caliornia and Oregon; 10 in Arkansas and Norh

Carolina; nine in exas; eigh in Alabama, Souh Carolina, and Wisconsin;

seven in Virginia; ve in Michigan and ennessee; our in Ohio; hree in Iowa,

Pennsylvania, and Washingon; wo in Illinois, Indiana, Kenucky, Louisiana, New

Jersey, and New York; and one in Massachusets, Oklahoma, and Wes Virginia.

INVISTA B.V.

INVISA, ormerly DuPon exiles and Ineriors, is an independenly managed

bu wholly owned subsidiary o Koch Indusries. Koch subsidiaries acquired

INVISA rom E.I. du Pon de Nemours and Company in 2004 and i wascombined wih Koch afliae KoSa. INVISA is a producer o nylon, span-

dex, and polyeser polymers and bers. Te maerials go ino clohing, carpes,

luggage, plasic botles, and car ineriors. Is producs include LYCR ber,

SAINMASE carpe, ANON carpe ber, and COOLMAX abric.
http://www.kochpipeline.com/AboutUs/our_operations.asphttp://www.gp.com/aboutus/index.htmlhttp://www.kochind.com/factssheets/KochFacts.aspxhttp://gp.com/facilitydirectory/index.htmlhttp://www.kochind.com/factssheets/KochFacts.aspxhttp://www.kochind.com/factssheets/KochFacts.aspxhttp://gp.com/facilitydirectory/index.htmlhttp://www.kochind.com/factssheets/KochFacts.aspxhttp://www.gp.com/aboutus/index.htmlhttp://www.kochpipeline.com/AboutUs/our_operations.asp


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acres, and suppor 15,000 catle in producion herds. I operaes hree ranches:

Beaverhead in Monana, Maador in exas, and Spring Creek in Kansas.

Given he array o indusries in which Koch Indusries is involved, rom energy o

agriculure o imber, all o which all under governmen oversigh, wha agency is

in charge o regulaion and wha regulaions are enorced are o grea imporanceo he companies botom line. Since Koch Indusries deals in commodiy rading,

or example, hey have a business ineres in wheher he Commodiy Fuures

rading Commission has he resources o ensure oil speculaors play by he rules.

And given is oil-and-gas ineress, hey have a business ineres in wheher he

Environmenal Proecion Agency has he resources o crack down on polluers o

ensure public healh.

How can wo o he riches billionaires in he counry inuence governmen regu-

laors o hese indusries? Te nex secions explore his quesion in deail.
http://www.kochind.com/factssheets/KochFacts.aspxhttp://www.kochind.com/factssheets/KochFacts.aspx


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Bankrolling the right wing

Charles and David Koch are no newcomers o he righ-wing ideological move-

men. Teir aher, Fred Koch, was an original member o he ulra-conservaive

John Birch Sociey. For decades, he vas Koch wealh nanced and buil he righ-

wing movemen in America. In 1977, Charles Koch co-ounded he Cao Insiue.

David Koch was he 1980 vice presidenial candidae or he Liberarian Pary.

In 1984, David Koch creaed Ciizens or a Sound Economy, an advocacy group

esablished o pursue he Koch agenda.

In 2004, Ciizens or a Sound Economy spli ino wo eniies: FreedomWorks and

Americans or Prosperiy Foundaion. Te Kochs remain acive wih Americans

or Prosperiy Foundaion. Americans or Prosperiy Foundaion, along wih is

siser organizaion, Americans or Prosperiy, pursues he righ-wing ideological

agenda hrough educaion eors, and holds rallies and evens across he saes as

well as runs elevision ads and oher voer mobilizaion eors. FreedomWorks is

a similar organizaion ha is now headed by ormer ep. Dick Armey (-X).

Bu he Cao Insiue and Americans or Prosperiy are no he Koch broh-

ers only avenues o pursue heir ideological agenda. No by a long sho. Indeed,

he Koch conribuions read like a whos who o he righ-wing movemen

(see able on pages 9-10). An examinaion o he Koch nonpro organizaions

records show hey have given a leas $85.9 million o more han 85 dieren

righ-wing organizaions over he pas decade and a hal.1 Tese donaions are a

conservaive esimae and jus he ip o he iceberg, bu he number o groups

reec he vas reach o he Koch money.

No only do he Koch brohers und he righ-wing inellecual movemen bu hey

also help organize ellow deep-pocke donors a conerences o review sraegies orcombaing he muliude o public policies ha hreaen o desroy America as we

know i, as Charles Koch wroe in a leter. Te conerences are inended o organize

he righ wing, coordinae message, atrac more donors, and mobilize voers o

pursue heir ideological agenda.
http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer?currentPage=allhttp://www.cato.org/about/timeline.htmlhttp://www.nytimes.com/2010/10/20/us/politics/20koch.html?_r=2&pagewanted=1http://www.nytimes.com/2010/10/20/us/politics/20koch.html?_r=2&pagewanted=1http://www.cato.org/about/timeline.htmlhttp://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer?currentPage=all


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The Koch brothers influence empire

A list o right-wing action groups and think tanks

This list o organizations is long but they have one common thread: promoting an antitax, antiregulatory ideology that will ultimately gut governments ability

ensure markets unctioning properly or everyone and protect consumers against abuses in the system. In addition to promoting this right-wing ideology, som

groups on this list, such as the Competitive Enterprise Institute, seek to undermine the science behind climate change. Indeed, many o the policies these organ

tions promote not only urther a right-wing ideology but they also increase prots or Koch Industries.

Cato Institute$13,887,640 Pioneer Institute or Public Policy Research$300,000

Citizens or a Sound Economy2$12,356,712 Environmental Literacy Council$287,516

George Masons Mercatus Center$9,674,500 Property and Environment Research Center$258,144

Americans or Prosperity Foundation$5,610,781 Center or Equal Opportunity$240,000

Heritage Foundation$4,115,571 Institute or Energy Research$237,000

Institute or Humane Studies$3,630,091 Atlas Economic Research Foundation$221,100

Bill o Rights Institute$3,070,909 Ethics and Public Policy Center$190,000

Youth Entrepreneurs o Kansas$2,617,842 Citizens or Congressional Reorm Foundation$175,000

Institute or Justice$2,615,000 Frontiers o Freedom Institute$175,000

Reason Foundation$2,516,521 Texas Public Policy Foundation$174,500

National Foundation or Teaching Entrepreneurship$2,481,786 The Phillips Foundation$165,000

Federalist Society$2,058,999 John Locke Foundation$134,472

Institute or the Study o Human Origins$2,035,912 Fund or American Studies$133,650

American Enterprise Institute & Brookings Joint Center or Regulatory

Studies$1,979,400James Madison Institute$121,924

Manhattan Institute$1,575,000 John W. Pope Center or Higher Education Policy$120,086

Washington Legal Foundation$1,457,500 Young Americas Foundation$107,500

Foundation or Individual Rights in Education$1,400,000 Leadership Institute$101,500

Foundation or Research on Economics & the Environment$1,385,500 American Council on Science & Health$101,000

Competitive Enterprise Institute$700,499 Laer Center or Global Economic Growth$100,000

National Center or Policy Analysis$672,000 Association o Private Enterprise Education$98,500

American Legislative Exchange Council$668,858 Commonwealth Foundation or Public Policy Alternatives$93,903

Capital Research Center$665,000 Center or Independent Thought$92,500

Tax Foundation$637,369 National Federation o Independent Business (NFIB) Legal Foundation$8

Independent Womens Forum$485,000 Carbon Dioxide & Global Change Center$85,000

International Foundation or Research in Experimental Economics$440,000 Mackinac Center or Public Policy$84,151

Acton Institute$416,250 Market Based Management Institute$82,500

Fraser Institute$373,721 Media Institute$80,000

Pacic Research Institute$370,000 Heartland Institute$77,578

American Council or Capital Formation$325,000 Goldwater Institute$75,000

George C. Marshall Institute$310,000 Institute or Research on the Economics o Taxation$65,000


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10 Cener or Amercan Progress Acon Fund | the Koch Brohers

The Koch brothers political-influence empire

A list o right-wing action groups and think tanks

Libertarian Review Foundation$60,000

Americans or Tax Reorm$60,000 Students in Free Enterprise$30,000

Buckeye Institute or Public Policy Solutions$55,946 Center or Excellence in Education$27,500

Center or Freedom & Prosperity Foundation$54,266 Ayn Rand Institute$25,000

National Tax Limitation Foundation$50,000 International Policy Network$25,000

North Carolina Institute or Constitutional Law$50,000 Becket Fund or Religious Liberty$20,538

Free Enterprise Education Institute$45,000 Atlantic Legal Foundation$20,000

South Carolina Policy Council$45,000 Institute or Political Economy$20,000

Center or Individual Rights$40,000 Media Research Center$15,005

Texas Justice Foundation$40,000 Future o Freedom Foundation$10,000

Foundation or Economic Education$38,267 Pacic Legal Foundation$10,000

National Taxpayers Union Foundation$37,500 Foundation or Human Development$5,000

Institute or Policy Innovation$35,000 American Spectator$4,500

Critical Review Foundation$33,000 Galen Institute$3,590

Hudson Institute$32,650

Source: Tax records for the Claude R. Lambe Charitable Foundation, David H. Koch Charitable Foundation, and the Charles G. Koch Charitable Foundation, available at guidestar.org for 2009 and compiled on MMatters Action Network website for prior years.


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Las year, or example, guess o he conerences included heavyweigh

conservaive gures such as:

Supreme Cour Jusices Anonin Scalia and Clarence Tomas Govs. Haley Barbour (-MS) and Bobby Jindal (-LA)

Sens. Jim DeMin (-SC) and om Coburn (-OK) eps. Mike Pence (-IN) and Paul yan (-WI) Media gures ush Limbaugh and Glenn Beck Major epublican donor Fred Malek, a ounder o he American Acion Nework

Tese op-shel conservaive leaders mingled wih Koch Indusries execuives as

well as oil indusry execuives rom Aspec Energy, LLC; Murn Drilling Co., Inc.;

Anschuz Company; and GeoPark Holdings Ld.; alongside several members o

Kochs various subsidiaries.

Te lis o inuenial atendees isel is anoher example o how inuenial heKoch brohers are in he righ-wing movemen, and i shows ha he res o he

righ wing shares ha eeling. Tey are a orce organizing and coordinaing he

righ-wing movemen, boh a he grassroos level and he nancial level.

Tis web o inuence spun by he Koch brohers hrough hese nonpro organiza-

ions and conerences around he counry serve o ge heir message ou in as many

ways as possible. Bu he wo brohers also make sure hey are pursuing heir ideo-

logical agenda a he grassroos level, oo, which is he subjec o our nex secion.
http://thinkprogress.org/2010/10/20/beck-koch-chamber-meeting/http://thinkprogress.org/2010/10/20/beck-koch-chamber-meeting/


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Using Americans for Prosperity

to stimulate the Tea Party

When he Koch-creaed Ciizens or a Sound Economy spli ino wo organiza-

ionsFreedomWorks and he Americans or Prosperiy FoundaionDavid

Koch remained chairman o he Americans or Prosperiy Foundaion and he

organizaion coninues o receive unding rom he Koch brohers. Te Americans

or Prosperiy Foundaion and is siser organizaion, Americans or Prosperiy,

work o educae and mobilize conservaives on a range o issues, rom he budge

o healh care and workers righs.

Americans or Prosperiy

holds rallies and evens across

he naion and spends mil-

lions o dollars on elevision

adverising and voer mobi-

lizaion eors. Las year, i

spen roughly$45 million or

he miderm elecions. And

is membership is growing. In

April 2009, here were roughly

23 sae chapers, bu now

Americans or Prosperiy ous

chapers in 32 saes (see map

a righ).

Charles and David Koch used

Americans or Prosperiy

o simulae he ea Pary

movemen ha arose over hepas wo years.Americansor Prosperiy was one o he

organizaions ha helped plan

dozens o he rs naional ea

The Koch brothers political-action-committee empire

Americans or Prosperity oices around the country

Source: Americans for Prosperity, www.americansforprosperity.org/state-chapters.

Americans for Prosperity state chapter
http://articles.latimes.com/2010/aug/16/nation/la-na-conservative-ads-20100816http://thinkprogress.org/2010/07/20/koch-tea-stimulate/http://thinkprogress.org/2009/04/09/lobbyists-planning-teaparties/http://thinkprogress.org/2009/04/09/lobbyists-planning-teaparties/http://thinkprogress.org/2010/07/20/koch-tea-stimulate/http://articles.latimes.com/2010/aug/16/nation/la-na-conservative-ads-20100816


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Pary rallies back in April 2009. Americans or Prosperiy saers organized evens

rom making reservaions, o providing alking poins and signs, o calling aciviss

o encourage hem o paricipae. One employee said heir role was o educae

ea Pariers and give hem nex sep raining a heir rallies.

Tink o Americans or Prosperiy as he voer-organizing arm o he Kochempirea ormidable poliical machine ha plays a role in all he key elecoral

saes. Tey have he abiliy o organize evens, mobilize voers, and run elevi-

sion ads. Tese ads promoe heir righ-wing agenda and orce eleced ofcials o

respond. Tis is bu one way he Koch brohers use heir considerable nances o

inuence elecions. Anoher way is hrough direc conribuions o candidaes a

he naional and sae level, which is he subjec o our nex secion.
http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer?currentPage=allhttp://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer?currentPage=all


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Bankrolling and influencing the

U.S. Congress

Charles and David Koch and heir company, Koch Indusries, do no limi heir

poliical donaions o righ-wing hink anks and advocacy groups. Tey also donae

millions direcly o candidaes. Since 1990, he Koch nework has donaed $11 mil-

lion o ederal candidaes, $9.8 million, or 89 percen, o which wen o epublicans.

Te Koch nework spen $2.1 million on las years miderm elecions, almos $2

million, or 93 percen, o which wen o epublicans. Te 2010 elecions ended

wih an emboldened epublican Pary ha won he majoriy in he U.S. House oepresenaives and made gains in he U.S. Senae. Koch Indusries PAC donaed

o 62 o he 87 members o he House epublican reshman class and o 12 o he

new members o he U.S. Senae. One could argue hese donaions give Charles

and David Koch considerable access o Congress. David Koch, or example,

atended he swearing-in ceremonyor Speaker o he House o epresenaives

John Boehner (-OH).

Te Kochs have conribued signicanly o he House Energy and Commerce

Commitee. In ac, hey are he single-larges oil-and-gas donor o members o

he commitee, giving $279,500 o 22 epublicans on he commitee and $32,000

o ve o is Democras, according o heLos Angeles imes. im Phillips, he

head o Americans or Prosperiy, even co-auhored an op-ed wih chairman

Fred Upon (-MI), deailing how Congress could sop he EPA rom ensuring a

cleaner environmen.

ep. Henry Waxman (D-CA) noed he Koch inuence over he epublican

Pary, saying ha i apparenly no longer maters in Congress wha healh expers

and scieniss hink [on energy]. All ha seems o mater is wha Koch Indusries

hinks. Indeed, one could argue he House Energy and Commerce Commitee isreally he Commitee rom Koch given is ousized inuence. I can be argued,

however, ha he epublican members o Congress in general are also wholly

owned subsidiaries o Koch Indusries (see able).

A Koch-unded group produc

report showing 56,000 jobs lo

rom clean energy bill

Americans or Prosperity use

the 56,000 jobs number in an

targeting Rep. Boucher

Koch gave money to Boucher

opponent, Morgan Grifth

Grifth won

The Koch network

in action

Virginia

Economic Impact on the State from the Waxman-Markey Bill, H.R. 2454Proposed Legislation to ReduceGreenhouse Gas Emissions

This studyanalyzes theWaxman-Markey billunder lowand high cost cases with respect to a baseline that projectsthe future in the absenceof thebill.

1,2W/M sets targetsthat

would reduce GHG emissions to 17% below 2005 levels by2020;42% below 2005 levelsby 2030;and 83% below2005 levels by2050 (Figure 1). The priceof carbon permits(what companies must pay to emit CO2) could reach

between $48and$6 1 per metric ton of CO2 (MT) by2020

and couldincrease tobetween $123/MTand $159/MT by2030.

3

Impact on Jobs

The jobs impact of W/M is delayedby the free allocation ofpermits and generous carbon offsets.By2030, as emissionreduction targets tightenand other W/M provisions phaseout, Virginia jobsdecline by41,400und erthelow costcaseandby56, 400 under thehigh cost case ( Figur e2) . T he

primary cause of joblossesislowerindustrial output due tohigher energy prices, the high cost of complying withrequired emissions cuts,and greater competition fromoverseas manufacturers with lower energy costs.

Decrease in Disposable Household Income

Higher energy prices would have ripple impacts on pricesthroughout the economyand would impose a financialcostonhouseholds. Virginia would see disposablehouseholdincome r educedby $103to $235 pe r yea r by 2020and$608 to $1,096by2030(Figure 3).

W/Ms Impact on EnergyPrices

Most energyprices would rise under W/M, particularlycoal,oil and naturalgas. By 2015, gasoline would increase

between 6%and 8%, electricity between2%and 3% andnatural gas between 13%and 20%. By2030, gasoline

pricesincrease between 20% and 26% while electricityprices increase by up to 53% and naturalgas by up to 64%.Table 1 shows theincreasein energy prices faced byatypical Virginia householdcompared to national householdincreasesoverthe2020-2030 period.

FactorsContributing to HigherElectricity Prices

W/M would reduce GHG emissions fromall sectors oftheeconomy (transportation, residential, commercial, andindustry); however, asthe largest emitter of GHGs, the

primary impact would fall on the electric sector.W/Mwould result in the electric industry shutting down mostcarbon-basedgeneration and/or using expensive, as yetunproven technology, to capture and store CO 2. To meetthe stringent goals of W/M, the electricindustry wouldalsohave to substitute highcost technologies,such asbiomassand wind, for conventionalgeneration.

Figure1.USGHGEmissions and

H.R.2454Targets

0

1000

2000

3000

4000

5000

6000

7000

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

MMTCO2e

H.R. 2454 Target

Baseline

Figure 3. LossofDisposable Income per

Household2020 2030

-$235

-$1,096

-$103

-$608

-1,500

-1,200

-900

-600

-300

0

2007Dollars

VA Low

VA High

-41.4

-56.4

-70

-60

-50

-40

-30

-20

-10

0

Figure 2. Loss in Employment by2030

.

VA-Low VA-High

Thousands

ofJobs

1The studyused NEMS/ACCF-NAM 2,the version of the National EnergyModeling Syst

this analysis.It was performed independent of EIA which uses the NEMS model for energ

Virginia jobs decline by 5

under the high cost cas
http://www.opensecrets.org/orgs/totals.php?cycle=2010&id=D000000186http://www.opensecrets.org/orgs/totals.php?cycle=2010&id=D000000186http://thinkprogress.org/2011/01/05/koch-thanks-his-congress/http://articles.latimes.com/2011/feb/06/nation/la-na-koch-brothers-20110206http://americansforprosperity.org/122910-congressman-fred-upton-and-afps-tim-phillips-wsj-how-congress-can-stop-epas-power-grabhttp://thinkprogress.org/2011/03/07/henry-waxman-koch/http://thinkprogress.org/2011/03/03/koch-fred-upton-myth/http://thinkprogress.org/2011/03/03/koch-fred-upton-myth/http://thinkprogress.org/2011/03/07/henry-waxman-koch/http://americansforprosperity.org/122910-congressman-fred-upton-and-afps-tim-phillips-wsj-how-congress-can-stop-epas-power-grabhttp://articles.latimes.com/2011/feb/06/nation/la-na-koch-brothers-20110206http://thinkprogress.org/2011/01/05/koch-thanks-his-congress/http://www.opensecrets.org/orgs/totals.php?cycle=2010&id=D000000186http://www.opensecrets.org/orgs/totals.php?cycle=2010&id=D000000186


18/31


The Koch brothers congressional empire

A list o political donations made to reshman members o congress in 2010 rom Koch PAC

Name Amount Party State Freshman

House

Adams, Sandy (R-FL) $5,000 Republican Florida Y

Barletta, Louis J. (R-PA) $5,000 Republican Pennsylvania Y

Benishek, Daniel J. (R-MI) $5,000 Republican Michigan Y

Berg, Rick (R-ND) $5,000 Republican North Dakota Y

Black, Diane Lynn (R-TN) $2,500 Republican Tennessee Y

Canseco, Francisco (R-TX) $2,500 Republican Texas Y

Chabot, Steve (R-OH) $10,000 Republican Ohio Y

Denham, Je (R-CA) $5,000 Republican Caliornia Y

Dold, Robert (R-IL) $5,000 Republican Illinois Y

Duy, Sean P. (R-WI) $10,000 Republican Wisconsin Y

Duncan, Je (R-SC) $2,500 Republican South Carolina Y

Farenthold, Blake (R-TX) $5,000 Republican Texas Y

Fincher, Steve (R-TN) $10,000 Republican Tennessee Y

Flores, William (R-TX) $2,500 Republican Texas Y

Gardner, Cory (R-CO) $10,000 Republican Texas Y

Gibbs, Bob (R-OH) $5,000 Republican Ohio Y

Gowdy, Trey (R-SC) $5,000 Republican South Carolina Y

Grifn, Tim (R-AR) $7,500 Republican Arkansas Y

Grifth, Morgan (R-VA) $5,000 Republican Virginia Y

Guinta, Frank (R-NH) $5,000 Republican New Hampshire Y

Hanna, Richard L. (R-NY) $5,000 Republican New York Y

Harris, Andy (R-MD) $10,000 Republican Maryland Y

Hartzler, Vicky (R-MO) $5,000 Republican Missouri Y

Hayworth, Nan (R-NY) $5,000 Republican New York Y

Heck, Joe (R-NV) $10,000 Republican Nevada Y

Herrera, Jaime (R-WA) $5,000 Republican Washington Y

Huelskamp, Tim (R-KS) $7,500 Republican Kansas Y

Huizenga, Bill (R-MI) $2,500 Republican Michigan Y

Hultgren, Randy (R-IL) $5,000 Republican Illinois Y

Hurt, Robert (R-VA) $5,000 Republican Virginia Y

Kelly, Mike (R-PA) $5,000 Republican Pennsylvania Y

Kinzinger, Adam (R-IL) $5,000 Republican Illinois Y

Lankord, James (R-OK) $5,000 Republican Oklahoma Y

Long, Billy (R-MO) $1,000 Republican Missouri Y

Meehan, Patrick L. (R-PA) $7,500 Republican Pennsylvania Y

Mulvaney, John Michael Mick (R-SC) $5,000 Republican South Carolina Y

Noem, Kristi Lynn (R-SD) $5,000 Republican South Dakota Y

Nugent, Richard B. (R-FL) $2,500 Republican Florida Y

Palazzo, Steven (R-MS) $5,000 Republican Mississippi Y


19/31


The Koch brothers congressional empire

A list o political donations made to reshman members o congress in 2010 rom Koch PAC

Name Amount Party State Freshman

Pearce, Steve (R-NM) $10,000 Republican New Mexico Y*

Pompeo, Mike (R-KS) $10,000 Republican Kansas Y

Quayle, Ben (R-AZ) $5,000 Republican Arizona YRenacci, James B. (R-OH) $5,000 Republican Ohio Y

Ribble, Reid (R-WI) $5,000 Republican Wisconsin Y

Rigell, Scott (R-VA) $5,000 Republican Virginia Y

Rivera, David (R-FL) $10,000 Republican Florida Y

Roby, Martha (R-AL) $5,000 Republican Alabama Y

Ross, Dennis (R-FL) $10,000 Republican Florida Y

Runyan, Jon (R-NJ) $5,000 Republican New Jersey Y

Schilling, Bobby (R-IL) $5,000 Republican Illinois Y

Schweikert, David (R-AZ) $5,000 Republican Arizona Y

Scott, Austin (R-GA) $5,000 Republican Georgia YScott, Tim (R-SC) $2,500 Republican South Carolina Y

Southerland, Steve (R-FL) $5,000 Republican Florida Y

Stivers, Steve (R-OH) $10,000 Republican Ohio Y

Tipton, Scott (R-CO) $2,500 Republican Colorado Y

Walberg, Tim (R-MI) $10,000 Republican Michigan Y

Webster, Daniel (R-FL) $5,000 Republican Florida Y

Womack, Steve (R-AR) $2,500 Republican Arkansas Y

Woodall, Rob (R-GA) $2,500 Republican Georgia Y

Yoder, Kevin W. (R-KS) $10,000 Republican Kansas Y

Young, Todd (R-IN) $5,000 Republican Indiana Y

Senate

Ayotte, Kelly A. (R-NH) $10,000 Republican New Hampshire Y

Blunt, Roy (R-MO) $10,000 Republican Missouri Y

Brown, Scott P. (R-MA) $5,000 Republican Massachusetts Y

Coats, Daniel R. (R-IN) $10,000 Republican Indiana Y

Hoeven, John (R-ND) $10,000 Republican North Dakota Y

Johnson, Ron (R-WI) $10,000 Republican Wisconsin Y

Kirk, Mark (R-IL) $15,000 Republican Illinois Y

Moran, Jerry (R-KS) $10,000 Republican Kansas Y

Paul, Rand (R-KY) $5,000 Republican Kentucky Y

Portman, Rob (R-OH) $10,000 Republican Ohio Y

Rubio, Marco (R-FL) $10,000 Republican Florida Y

Toomey, Pat (R-PA) $10,000 Republican Pennsylvania Y

Source: Center for Responsive Politics.


20/31


Bankrolling state

politicians

Te Koch brohers spread heir largesse a he sae level oo.

Daa rom he Naional Insiue or Money in Sae Poliics

show ha rom 2003 o 2010, he Koch brohers, as well

as heir companies, employees, and afliaes, have donaed

$5.2 million o sae candidaes and ballo measures in

34 saes. $3.4 million o hose donaions, or 65 percen, wen

o epublican candidaes. Anoher $1 million, or 20 percen,

wen o one ballo iniiaive: he eor o overurn Caliorniasclean energy law, AB 32.

Te Koch brohers also donaed $1.2 million o elec governors

las year, including $1 million o he epublican Governors

Associaion. Like new members o Congress, direc Koch

donaions helped elec or re-elec mosly righ-wing governors

(see able).

As he ables show, he Koch brohers predominanly suppor

righ-wing governors. Since aking ofce, hese governors have

been shiing he ax burden rom he super rich o he middle

class. For insance, no only did Wisconsin Gov. Scot Walker

wage an inense gh wih public-secor unions o ake away

heir collecive bargaining righs bu he also proposed o raise

axes on seniors and lower-income amilies while cuting axes

or corporaions. Or ake Ohio Gov.John Kasich, who has pro-

posed cus o educaion and nursing homes while a he same

ime proposing o eliminae he esae ax, a ax ha alls only

on he superwealhy.

The Koch brothers statehouse empire

A list o the 34 states in which the Koch broth

their companies, and their employees made

political contributions between 2003 and 20

StateKoch Industries contributio

from 2003 to 2010

Alabama $43,500

Alaska $38,613

Arizona $5,000

Arkansas $60,500

Caliornia $1,149,500

Delaware $1,800

Florida $249,195

Georgia $500,355

Idaho $500

Illinois $11,000

Indiana $2,500

Iowa $131,150

Kansas $478,270

Kentucky $3,500

Louisiana $218,291

Maine $11,100

Michigan $1,500

Minnesota $98,160

Mississippi $163,600

Missouri $2,375

Nebraska $5,000Nevada $6,000

New Mexico $26,500

New York $274,700

North Carolina $19,000

Ohio $56,050

Oklahoma $197,375

Oregon $141,863

Pennsylvania $39,000

South Carolina $20,700

Texas $740,570

Virginia $273,402

Washington $94,050

Wisconsin $160,185

Total $5,224,803

Source: KOCH INDUSTRIES Overview Map, available at http://www.follomoney.org/database/natnoteview.phtml?u=1457&y=0&ince=1&incs=1
http://www.followthemoney.org/database/natnoteview.phtml?u=1457&y=0&ince=1&incs=1http://www.followthemoney.org/database/topcontributor.phtml?u=1457&y=All&incy=1&ince=1&incs=1&incf=1http://www.followthemoney.org/database/topcontributor.phtml?u=1457&y=All&incy=1&ince=1&incs=1&incf=1http://www.bloomberg.com/news/2011-02-23/koch-funneled-1-2-million-to-elect-governors-battling-unions.htmlhttp://thinkprogress.org/2011/03/16/gop-state-corporate-tax-cuts/http://thinkprogress.org/2011/03/16/gop-state-corporate-tax-cuts/http://thinkprogress.org/2011/03/22/estate-tax-vs-middle-class-report/http://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=ALhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=AKhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=AZhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=ARhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=CAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=DEhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=FLhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=GAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=IDhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=ILhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=INhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=IAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=KShttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=KYhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=LAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MEhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MIhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MNhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MShttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MOhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NEhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NVhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NMhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NYhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NChttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=OHhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=OKhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=ORhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=PAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=SChttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=TXhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=VAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=WAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=WIhttp://www.followthemoney.org/database/natnoteview.phtml?u=1457&y=0&ince=1&incs=1http://www.followthemoney.org/database/natnoteview.phtml?u=1457&y=0&ince=1&incs=1http://www.followthemoney.org/database/natnoteview.phtml?u=1457&y=0&ince=1&incs=1http://www.followthemoney.org/database/natnoteview.phtml?u=1457&y=0&ince=1&incs=1http://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=WIhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=WAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=VAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=TXhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=SChttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=PAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=ORhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=OKhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=OHhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NChttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NYhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NMhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NVhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=NEhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MOhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MShttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MNhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MIhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=MEhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=LAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=KYhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=KShttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=IAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=INhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=ILhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=IDhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=GAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=FLhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=DEhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=CAhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=ARhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=AZhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=AKhttp://www.followthemoney.org/database/StateGlance/contributor_details.phtml?&l=1&u=1457&ince=1&incs=1&s=ALhttp://thinkprogress.org/2011/03/22/estate-tax-vs-middle-class-report/http://thinkprogress.org/2011/03/16/gop-state-corporate-tax-cuts/http://thinkprogress.org/2011/03/16/gop-state-corporate-tax-cuts/http://www.bloomberg.com/news/2011-02-23/koch-funneled-1-2-million-to-elect-governors-battling-unions.htmlhttp://www.followthemoney.org/database/topcontributor.phtml?u=1457&y=All&incy=1&ince=1&incs=1&incf=1http://www.followthemoney.org/database/topcontributor.phtml?u=1457&y=All&incy=1&ince=1&incs=1&incf=1http://www.followthemoney.org/database/natnoteview.phtml?u=1457&y=0&ince=1&incs=1


21/31


Adding it all up

In he previous secions o our paper, weve deailed he Koch brohers vas

business ineress, heir exensive unding o righ-wing hink anks and poliical

acion commitees o suppor he business needs o heir empire and heir ideo-

logical agenda, and heir donaions o specic poliicians a he ederal and sae

level in suppor o hose same business and ideological needs. Te Koch brohers

insis ha all o his poliical aciviy is relaed o heir own individual poliicalphilosophy bu a case can be made ha he business and poliical ineress o he

Koch brohers are one and he same. How he wo are inexorably inerwined is

he subjec o our nex secion.

The Koch brothers and governors mansions

A list o the governors who the Koch brothers, their businesses, and their employees

contributed to in the last gubernatorial elections

Gov. Rick Perry (R-TX) received

$76,000 rom the Koch network.

Gov. Mary Fallin* (R-OK) received $5,000

rom the Koch network.

Gov. Andrew Cuomo* (D-NY) received

$87,000** rom the Koch network.

Gov. Terry Branstad* (R-IA) received $5,000


Gov. Scott Walker* (R-WI) received


Gov. Tom Corbett* (R-PA) received $5,000


Gov. John Kasich* (R-OH) received


Gov. Mike Beebe (D-AR) received $4,000


Gov. Sam Brownback* (R-KS) received


Gov. C.L. Butch Otter (R-ID) received $500


Gov. Nathan Deal* (R-GA) received


Gov. Mark Dayton* (D-MN) received $250


Gov. Susana Martinez* (R-NM) received


*Newly elected** According to the New York State Board of Elections

Source: National Institute for Money in State Politics.


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The real Koch brothers philosophy

Their profits over the middle class

Te Koch brohers are a common hread nancing he righ-wing atack machine.

Tey are key players behind he ea Pary movemen; he assaul on healh

reorm, workers righs, he Environmenal Proecion Agency, and Wall Sree

nancial reorm; and climae change deniers, o name jus a ew (see able).

Te Koch brohers poliical and chariable donaions do und organizaionsdedicaed o heir philosophy o limied governmen and deregulaion bu i is

hard no o noice ha his is no purely philosophical. Teres no geting around

he ac ha he Koch ideology also helps he Koch botom line, oen a he

expense o middle-class amilies. A 2004 repor by he Naional Commitee or

esponsive Philanhropy made hisvery same poin, saing: Tese oundaions

give money o nonpro organizaions ha do research and advocacy on issues

ha impac he pro margin o Koch Indusries. Here are some examples o how

he Koch brohers use heir ideology o pu heir pro margin over he well-being

o middle-class amilies.

Fighting collective bargaining

Te Koch brohers have paricipaed in he gh over collecive bargaining aking

place across he counry. Te Koch nework donaed $1.2 million o help elec

conservaive epublican governors las year, including Wisconsins Scot Walker

and Ohios John Kasich, boh o whom are rying o ake away collecive bargain-

ing righs. During he gh in Wisconsin, Americans or Prosperiy ran an ad and

orchesraed proess o suppor Gov. Walkers union busing and orchesraedpro-Walker proess. Americans or Prosperiy also sared a websie urging people

o Sand wih Governor Kasich.
http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer#ixzz1GKZ1T6GGhttp://www.bloomberg.com/news/2011-02-23/koch-funneled-1-2-million-to-elect-governors-battling-unions.htmlhttp://thinkprogress.org/2011/02/22/koch-ads-walker/http://thinkprogress.org/2011/02/18/business-teaparty-wisconsin/http://www.americansforprosperity.org/031611-stand-ohio-governor-john-kasichhttp://www.americansforprosperity.org/031611-stand-ohio-governor-john-kasichhttp://thinkprogress.org/2011/02/18/business-teaparty-wisconsin/http://thinkprogress.org/2011/02/22/koch-ads-walker/http://www.bloomberg.com/news/2011-02-23/koch-funneled-1-2-million-to-elect-governors-battling-unions.htmlhttp://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer#ixzz1GKZ1T6GG


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Conservaives say hese ghs are all abou balancing sae budge, ye Americans

or Prosperiy-Michigans execuive direcor gave a crowd o conservaives a di-

eren reason: wha we would like o see is o ake he unions ou a he knees so

hey don have he resources o gh hese batles. Weak labor unions make i

easier or big corporaions o enac heir agenda. Bu ha agenda oen sands in

conras o good-paying jobs or he middle class.

Putting our economic security at the mercy of Wall Street

Te Koch brohers pursui o deregulaion and limied governmen helps heir

botom line bu i can oen come a he expense o everyone else. wo examples

make his case.

Firs, he Koch brohers ough eors o give he Commodiy Fuures rading

Commission more oversigh over speculaive rading, whereby companies can ari-cially inae prices on hings such as oil, during he Wall Sree reorm debae. One

o he Koch companiesKoch Supply & radingakes par in oil and derivaives

rading. We should poin ou ha oil speculaion has reached an all-ime high a he

same ime gas prices coninue o skyrocke.

Similarly, Americans or Prosperiy suppors he House coninuing resoluion ha

cus spending by $61 billion. Tose cus would reduce he budge or he CFC

byone-hird. Make no misake: Guting he CFC or limiing is auhoriy would

be a boon o Wall Sree businesses ha use complex nancial insrumens. Bu

while he resul is more pros or oil companies, i means everyone else pays

more a he pump.

Anoher example o he Koch philosophy huring middle-class amilies eco-

nomic securiy is Social Securiy reorm. Koch-nanced groups such as he Cao

Insiue, Heriage, and Americans or Prosperiy advocae or he parial privaiza-

ion o Social Securiy. While his would be a boon or Wall Sree, i would pu

reiremen securiy a he mercy o he sock marke. We should no orge ha

rom Sepember 2007 o May 2009, American 401(k) and individual reiremen

accouns los a oal o$2.7 rillion.

Social Securiy may no be vial or billionaires bu i is a lieline or millions o

Americans ha is all ha sands beween paying heir bills or slipping ino povery.
http://thinkprogress.org/2011/02/25/afp-union-knees/http://thinkprogress.org/2011/02/25/afp-union-knees/http://www.bloomberg.com/news/2010-04-15/koch-cargill-fight-dodd-derivative-bill-reversing-30-years-of-cftc-policy.htmlhttp://www.businessweek.com/news/2011-03-15/energy-speculation-highest-on-record-cftc-s-chilton-says.htmlhttp://wonkroom.thinkprogress.org/2011/03/15/oil-speculation-cuts/3http://abcnews.go.com/Business/401k-recovery/story?id=8831728http://abcnews.go.com/Business/401k-recovery/story?id=8831728http://wonkroom.thinkprogress.org/2011/03/15/oil-speculation-cuts/3http://www.businessweek.com/news/2011-03-15/energy-speculation-highest-on-record-cftc-s-chilton-says.htmlhttp://www.bloomberg.com/news/2010-04-15/koch-cargill-fight-dodd-derivative-bill-reversing-30-years-of-cftc-policy.htmlhttp://thinkprogress.org/2011/02/25/afp-union-knees/http://thinkprogress.org/2011/02/25/afp-union-knees/


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Tax cuts for them, more debt for ever yone else

Te Koch brohers use heir advocacy group Americans or Prosperiy o build

suppor or eliminaing he esae ax, a ax only he op 0.2 percen o Americans

had o pay in 2009. Eliminaing his ax would help he brohers, who ogeher

have a combined ne worh o $44 billion.

Eliminaing he esae ax, however, would increase he ederal budge deci by

$1.3 rillion over 10 years. Tis revenue loss could orce cus o programs vial o

middle-class amilies and would crimp invesmens in he long-erm growh o our

economy hrough vial educaion, innovaion, and inrasrucure programs.

Putting profits over public health

Koch Indusries is one o he worlds op greenhouse polluers, wih a carbonooprin o roughly300 million ons. Koch Indusries renes high-carbon

Canadian crude, mainains coal-burning plans, owns one o he larges

oil pipeline neworks in America, runs lumber mills, produces chemicals, and

manuacures erilizer.

No surprisingly, he Koch brohers oppose eors o proec public healh by

regulaing hese subsances. Tey opposed eors o cu harmul carbon emis-

sions. Te head o Americans or Prosperiy, im Phillips, co-auhored an op-ed

wih ep. Fred Upon (-MI), he chairman o he House Energy and Commerce

Commitee, deailing how Congress could sop he Environmenal Proecion

Agency rom ensuring a cleaner environmen. One o he Koch subsidiaries,

Georgia-Pacic, is urging lawmakers no o consider ormaldehyde a human car-

cinogen, as i is a ormaldehyde producer.

Koch Indusries clearly has an incenive o gu environmenal regulaory agen-

cies: Many o heir companies pollue and have aced signican nes. Greenpeace

repored on some o he environmenal violaions, nes, and setlemens ensnarl-

ing Koch Indusries. In 2009, or example, Koch Indusries INVISA uni

agreed o pay a $1.7 million penaly and spend $500 million o x environmenalviolaions in seven saes. Moreover, in December 2009, a Koch pipeline spilled

210,000 gallons o crude oil in Minnesoa. Four years earlier, anoher Koch pipe-

line spilled 100,000 gallons o oil. In 2000, Koch Indusries agreed o pay $30 mil-
http://wonkroom.thinkprogress.org/2009/10/05/koch-estate-tax/http://www.cbpp.org/files/estatetaxmyths.pdfhttp://www.cbpp.org/files/estatetaxmyths.pdfhttp://wonkroom.thinkprogress.org/2011/01/30/koch-carbon-footprint/http://wonkroom.thinkprogress.org/2011/01/30/koch-carbon-footprint/http://wonkroom.thinkprogress.org/2010/08/19/david-koch-prop23/http://wonkroom.thinkprogress.org/2010/04/01/koch-pollution-astroturf-2deca/http://wonkroom.thinkprogress.org/2010/11/08/koch-epa-regulations/http://wonkroom.thinkprogress.org/2010/10/28/loughlin-climate-zombie/http://wonkroom.thinkprogress.org/2010/10/28/loughlin-climate-zombie/http://americansforprosperity.org/122910-congressman-fred-upton-and-afps-tim-phillips-wsj-how-congress-can-stop-epas-power-grabhttp://www.nytimes.com/2011/03/05/us/05koch.html?_r=2&hphttp://www.nytimes.com/2011/03/05/us/05koch.html?_r=2&hphttp://www.greenpeace.org/usa/Global/usa/report/2010/3/koch-industries-secretly-fund.pdfhttp://www.greenpeace.org/usa/Global/usa/report/2010/3/koch-industries-secretly-fund.pdfhttp://www.greenpeace.org/usa/Global/usa/report/2010/3/koch-industries-secretly-fund.pdfhttp://www.greenpeace.org/usa/Global/usa/report/2010/3/koch-industries-secretly-fund.pdfhttp://www.nytimes.com/2011/03/05/us/05koch.html?_r=2&hphttp://www.nytimes.com/2011/03/05/us/05koch.html?_r=2&hphttp://americansforprosperity.org/122910-congressman-fred-upton-and-afps-tim-phillips-wsj-how-congress-can-stop-epas-power-grabhttp://wonkroom.thinkprogress.org/2010/10/28/loughlin-climate-zombie/http://wonkroom.thinkprogress.org/2010/10/28/loughlin-climate-zombie/http://wonkroom.thinkprogress.org/2010/11/08/koch-epa-regulations/http://wonkroom.thinkprogress.org/2010/04/01/koch-pollution-astroturf-2deca/http://wonkroom.thinkprogress.org/2010/08/19/david-koch-prop23/http://wonkroom.thinkprogress.org/2011/01/30/koch-carbon-footprint/http://wonkroom.thinkprogress.org/2011/01/30/koch-carbon-footprint/http://www.cbpp.org/files/estatetaxmyths.pdfhttp://www.cbpp.org/files/estatetaxmyths.pdfhttp://wonkroom.thinkprogress.org/2009/10/05/koch-estate-tax/


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lion or 300 repored oil spills a Koch pipelines, which caused an esimaed

3 million gallons o oil o spill ino lakes and sreams in six saes.

An Environmenal Proecion Agency sudy ound ha concenraion levels o

carbon and oher air polluans are a unprecedened levels ha have negaive

eecs on public healh as well as lead o higher levels o drough and harm o ourwaer and ood supplies.

Fighting quality health care for ever yone

Americans or Prosperiy was a key acor in acivaing opposiion agains he

landmark Aordable Care Ac, including pushing he Augus 2009 own hall

meeings, as deailed earlier in our paper. Te Koch brohers also have conrib-

ued o he Naional Federaion o Independen Businesses Legal Foundaion.

NFIB is a plaini and picking up mos o he ab o nance he mulisae Floridalawsui ha, i successul, could overurn he law. Te wo brohers also und

conservaive groups such as he Cao Insiue, he Heriage Foundaion, and he

Naional Cener on Policy Analysis, all o which have released repors purporing

negaive consequences o he new healh law.

While hey argue he law is abou reedom, hey wan o repeal he law ha

gives millions o Americans more reedom and conrol over heir healh care,

exends coverage o 32 million Americans, holds insurance companies accoun-

able, cus he deci by more han $1 rillion over he nex wo decades, and

lowers coss or amilies.

Putting profits over science

Te Koch brohers make heir money rom an oil-and-gas conglomerae ha

emis polluans ha conribue o climae change. I should no be surprising,

hen, ha he Koch brohers are also major conribuors o organizaions denying

he eecs o climae change. As Greenpeace repored:

Alhough Koch inenionally says ou o he public eye, i is now playing a quie

bu dominan role in a high-prole naional policy debae on global warming.

Koch Indusries has become a nancial kingpin o climae science denial and
http://yosemite.epa.gov/opa/admpress.nsf/0/0EF7DF675805295D8525759B00566924http://pr.thinkprogress.org/2009/12/pr20091208http://www.palmbeachpost.com/news/lobbying-group-picks-up-costs-of-floridas-health-1268013.html?printArticle=yhttp://www.americanprogress.org/issues/2011/01/jobs_health_repeal.htmlhttp://www.greenpeace.org/usa/campaigns/global-warming-and-energy/polluterwatch/koch-industries/http://www.greenpeace.org/usa/campaigns/global-warming-and-energy/polluterwatch/koch-industries/http://www.americanprogress.org/issues/2011/01/jobs_health_repeal.htmlhttp://www.palmbeachpost.com/news/lobbying-group-picks-up-costs-of-floridas-health-1268013.html?printArticle=yhttp://pr.thinkprogress.org/2009/12/pr20091208http://yosemite.epa.gov/opa/admpress.nsf/0/0EF7DF675805295D8525759B00566924


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clean energy opposiion. Tis privae, ou-o-sigh corporaion is now a par-

ner o Exxon Mobil, he American Peroleum Insiue and oher donors ha

suppor organizaions and on-groups opposing progressive clean energy and

climae policy. In ac, Koch has ou-spen Exxon Mobil in unding hese groups

in recen years. From 2005 o 2008, Exxon Mobil spen $8.9 million while he

Koch Indusries-conrolled oundaions conribued $24.9 million in unding oorganizaions o he climae denial machine.

In addiion o he serious public healh risks climae change poses o he counry,

he Koch brohers assaul on climae-change science hinders our abiliy o move

orward and creae he jobs o he uure. Te Koch brohers ough he American

einvesmen and ecovery Ac o 2009 ha provided billions in invesmens o

move our counry o a green economy and creae millions o jobs hrough high-

speed rail and solar and wind energies. In a ime o high unemploymen, hese

jobs would grealy help middle-class amilies searching or work.

Fighting for corporate money in our elections

In addiion o donaing o execuive and legislaive leaders, he Koch brohers

inves heavily in organizaions ha promoe a conservaive judicial philosophy

such as he Federalis Sociey and he Cao Insiue. Tese organizaions played

a role in promoing corporae money in our elecions, drowning ou he voices o

everyone else. Tink Progress repored:

When he Supreme Cour ook up he Ciizens Unied case, Koch-unded on

groups led a series o amicus bries arguing ha unlimied corporae money

in poliics is proeced by he Firs Amendmen. For example, he Cao Insiue,

ounded and nanced by he Koch brohers, submited a brie ha called or

unetered corporae speech and he Insiue or Jusice, ounded and nanced

by Davids broher Charles, submited a brie claiming ha campaign nance

laws prohibiing unlimied corporae money rump he Firs Amendmen.

Koch-unded groups laer lobbied aggressively o oppose efors o provide rans-

parency or he new idal wave o corporae spending.

While unlimied amouns o corporae money in our elecions may be good or

he Koch brohers, who conrol one o he larges privae companies in America,

i will drown ou he voices o millions o Americans. Ta means poliicians and
http://thinkprogress.org/2011/01/10/citizens-united-koch/http://www.scotusblog.com/case-files/cases/citizens-united-v-federal-election-commission/http://www.scotusblog.com/case-files/cases/citizens-united-v-federal-election-commission/http://thinkprogress.org/2010/05/01/koch-rich-donohue/http://thinkprogress.org/2010/05/01/koch-rich-donohue/http://www.scotusblog.com/case-files/cases/citizens-united-v-federal-election-commission/http://www.scotusblog.com/case-files/cases/citizens-united-v-federal-election-commission/http://thinkprogress.org/2011/01/10/citizens-united-koch/


27/31


eleced leaders would be bombarded wih millions in campaign donaions and

elevision adverisemens ha pu he ineress o he ew over he ineress o

middle-class amilies and he res o he counry.

Te botom line: Tese public policy posiions aken by Koch-unded organiza-

ions bene Koch Indusries and is wo main shareholders, he Koch brohers,oen a he expense o he American middle class. How hey parlay his nework

in orhcoming elecions will have equally meaningul consequences or he Koch

brohers and middle-class amilies.


28/31


Whats next?

The Koch brothers have already star ted prepar ing for 2012

Te signican vicories he billionaire Koch brohers chalked up or heir ideo-

logical and business ineress in he 2010 elecions is only a precursor o wha is o

come. Te Koch brohers have already pledged o raise $88 million hrough heir

considerable nework or policy and poliical projecs or he 2012 elecion cycle.

We have already seen how crucial epublicans see he Koch brohers or heirsuccess nex year. Sen. Scot Brown (-MA) was recenlycaugh on ape hank-

ing David Koch or his suppor, saying i mean a on, and asking or more

suppor since he is up or reelecion in 2012. David Koch also hosed one o he

rs undraisers or ormer Massachusets Gov. Mit omneys possible 2012

presidenial campaign.

Moreover, possible presidenial candidaes ormer Minnesoa Gov. im Pawleny

and ormer Sen. ick Sanorum have agreed o paricipae in an Americans or

Prosperiy Foundaion even in New Hampshire in April 2011. Oher possible

conenders such as Mit omney, Mississippi Gov. Haley Barbour, ormer Alaska

Gov. Sarah Palin, ormer Speaker New Gingrich, and ormer Arkansas Gov.

Mike Huckabee may join hem as well.

Tis repor is inended o be a guide o help progressives map ou he vas nework

o inuence he Koch brohers have buil over he las decades. By exposing he

Koch brohers agenda and shedding ligh on how hey operae, progressives can

orce a public debae ha will show ha he Koch brohers are ouside he main-

sream o mos Americans and ha hey are puting heir sel-ineres and righ-

wing agenda ahead o middle-class amilies.
http://www.politico.com/news/stories/0211/49303_Page2.htmlhttp://thinkprogress.org/2011/03/07/scott-brown-david-koch-money/http://thinkprogress.org/2011/03/15/mitt-romney-david-koch/http://news.yahoo.com/s/yblog_exclusive/20110318/pl_yblog_exclusive/gop-2012-hopefuls-line-up-for-tea-party-summithttp://news.yahoo.com/s/yblog_exclusive/20110318/pl_yblog_exclusive/gop-2012-hopefuls-line-up-for-tea-party-summithttp://thinkprogress.org/2011/03/15/mitt-romney-david-koch/http://thinkprogress.org/2011/03/07/scott-brown-david-koch-money/http://www.politico.com/news/stories/0211/49303_Page2.html


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Endnotes

1 ths s a conservave esmae o Koch gvng hrough her charable organzaons. i does no nclude grans ounverses or hospals. No every year snce 1995 s refeced. i does no n clude her drec, personal conrbuons.

2 CSE spl no FreedomWorks and Amercans or Prospery Foundaon.


30/31


About the author

ony Carrk is policy direcor o he CAP Acion War oom.

Acknowledgements

Te auhor would like o hank his colleagues a Tink Progress who have been

leading he eor o shed he ligh on he Koch nework, paricularly he pas wo

years. Specically, Lee Fang and Brad Johnsons research and reporing has been

criical. Tis repor was guided by heir work.


31/31

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Koch Brothers