Congressional Budget Office: Financial reform puts taxpayers on the hook for $58 billion

Here’s what the CBO’s official cost estimate of the legislation says:

The total amount collected from assessments is estimated to be about $58 billion through 2020. But such assessments would become an additional business expense for companies required to pay them. Those additional expenses would result in decreases in taxable income somewhere in the economy, which would produce a loss of government revenue from income and payroll taxes that would partially offset the revenue collected from the assessment itself.

The Heritage Foundation observes this $58 billion might just be the beginning of taxpayer bailouts ensconced in the financial reform law being proposed:

In other words, these financial firms have to get that $58 billion dollars from somewhere, and that somewhere is you. Now the Obama administration may argue that they actually oppose the creation of the resolution fund. But American taxpayers should be even more frightened when they find out why the Obama administration opposes it. The New York Times reports: “The Obama administration does not support the $50 billion fund, partly out of concern that more money may be needed if one or more big financial firms ever collapse and that creating a fund could make it difficult to authorize more money.” AEI’s Peter Wallison details CBO how this provision could put taxpayer on the hook for much larger sums:

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