US Supreme Court rejects appeal to strike down corporate contributions ban

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The state ban on corporate political donations in Iowa has remained intact today, following the rejection of the US Supreme Court of a nonprofit entity who is seeking to strike down the ban on the grounds that it violates rights to equal protection and free speech. Bloomberg said that the current state law bans for-profit and nonprofit corporations, as well as banks, savings and loans, credit unions and insurance companies to make campaign contributions. A federal appeals court ruling in St Louis last year has upheld the ruling.

According to the news agency, the Supreme Court has decided to hold Iowa Right to Life Committee Inc's appeal to strike the ban down as it awaits the resolution to the challenge to the federal contribution caps. The Supreme Court justices reportedly made no comment about their decision on Iowa Right to Life's case.

Last week, the high curt had ruled 5-4 on the speech rights of individuals who wish to make as many campaign contributions as he wishes. The case reportedly centered on a federal law, which limits the total amount an individual could donate to candidates, parties and political committees to $123,200 in a two-year election cycle, the news agency said. The court added that the restrictions are valid such that it targets contributions to politicians in exchange of specific favors.

In its appeal with the US high court, Iowa Right to Life argued that the 2010 Citizens United ruling of the Supreme Court, which has not set a limit to corporate spending, should also be used to govern campaign contributions. Moreover, the advocacy group has also urged the justices to reverse a 2003 Supreme Court decision, which upheld a federal law that imposes restrictions on contributions made by nonprofit advocacy groups. The 2010 ruling of the St. Louis-based appeals court reportedly stated that the Supreme Court alone has the prerogative to overrule its own decisions, said Bloomberg.

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