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In addition, during the past dozen years the Kochs and other family members have personally spent more than two million dollars on political contributions. In the second quarter of 2010, David Koch was the biggest individual contributor to the Republican Governors Association, with a million-dollar donation. Other gifts by the Kochs may be untraceable; federal tax law permits anonymous personal donations to politically active nonprofit groups. Throughout the seventies, Charles and David continued to build Koch Industries. In 1980, William, with assistance from Freddie, attempted to take over the company from Charles, who, they felt, had assumed autocratic control. In retaliation, the company’s board, which answered to Charles, fired William.

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The Kochs are longtime libertarians who believe in drastically lower personal and corporate taxes, minimal social services for the needy, and much less oversight of industry—especially environmental regulation. In a study released this spring, the University of Massachusetts at Amherst’s Political Economy Research Institute named Koch Industries one of the top ten air polluters in the United States. Indeed, the brothers have funded opposition campaigns against so many Obama Administration policies—from health-care reform to the economic-stimulus program—that, in political circles, their ideological network is known as the Kochtopus.

The greatest threat to free enterprise, he warned, was not Communism or the New Left but, rather, “respectable elements of society”—intellectuals, journalists, and scientists. To defeat them, he wrote, business leaders needed to wage a long-term, unified covert campaign to change public opinion. With his brother Charles, who is seventy-four, David Koch owns virtually all of Koch Industries, a conglomerate, headquartered in Wichita, Kansas, whose annual revenues are estimated to be a hundred billion dollars.

Under U.S. law, the Central Intelligence Agency must lead covert operations unless the president finds that another agency should do so and properly informs Congress. Normally, the CIA is the U.S. government agency legally allowed to carry out covert action. The CIA's authority to conduct covert action comes from the National Security Act of 1947. President Ronald Reagan issued Executive Order titled United States Intelligence Activities in 1984.

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