Let’s Spend Millions More
There has been much debate on the necessity of the proposed Consumer Financial Protection Agency and how it will ultimately effect the economy. Of course there have been pros and cons brought up by both advocates and opposition. One subject that seems to keep getting overlooked during discussions is the costs associated with enacting the Consumer Financial Protection Agency. The primary question that comes to mind for me is-how much will the American people end up paying for the creation of this agency and is it an expense that we can afford to take on? According to a Congressional Budget Office Report, enacting H.R. 3126 would increase direct spending by $646 million dollars over the next 9 years while decreasing revenues by $490 million. That’s a total budget deficit of more than $1.1 billion dollars and $126 million per year to handle concerns that the House Financial Services and Senate Banking Committees in addition to the FDIC, NCUA and several other federal agencies should be taking care of and monitoring. Are there matters of inefficiency or competency within the federal financial sector that should be addressed ?
Also, according to the report, “The bill would require the CFPA to charge fees to offset the expenses of carrying out its exercise of the government’s sovereign authority, CBO believes that those amounts should appear in the budget as revenues.” In addition, business taxes, including fees paid to the Consumer Financial Protection Agency would reduce the tax base of income and payroll taxes, resulting in reductions in income and payroll tax revenues. What are your thoughts? http://www.cbo.gov/ftpdocs/108xx/doc10830/hr3126.pdf.
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