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Dodd reform bill would reduce U.S. deficit: report
WASHINGTON |
WASHINGTON (Reuters) - The Democrat's Senate financial reform bill would cut the U.S. budget deficit by $21 billion over the next 10 years, according to a cost estimate by the Congressional Budget Office obtained by Reuters.
The estimated reduction in the budget deficit over the 2011-2020 period stems largely from charging the financial industry assessments for a fund to liquidate large, troubled financial firms, the office said.
The bill authored by Senate Banking Committee Chairman Christopher Dodd is designed to ensure no financial firm is too big to fail and the senate may start debating it next week.
However, the idea of creating a $50 billion liquidation fund has been criticized by banks and Republicans and is not favored by the Obama administration.
The congressional office estimates the expenses of the resolution fund would ultimately exceed income from new assessments paid by financial firms, and thus add to the deficit in later years.
The $21 billion deficit reduction stemming from the resolution fund would make a relatively small dint in the U.S. budget shortfall. The United States is projected to post a record $1.5 trillion deficit this year. Deficits are projected to fall in coming years as the economy recovers before rising again due to an aging population.
Dodd's bill would also create a bureau to regulate consumer financial products such as mortgages, as well as new rules to regulate derivatives and hedge funds. The bill aims to rein in banks' risky activities and revamp financial regulation in wake of the worst economic crisis in decades.
The congressional office said it has not determined whether the estimated costs under the Democrats' bill would be smaller or larger than the costs of other approaches to addressing future financial crises and the risks they pose to the economy.
Senate Democratic leaders plan to seek a key procedural vote on the financial reform bill on Thursday, with an eye toward a final Senate vote next Monday, a senior Democratic aide said.
The Senate version would then have to be reconciled with the version passed by the House of Representatives late last year.
(Reporting by Rachelle Younglai and Karey Wutkowski; Editing by Andrew Hay)
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Because you think with fear and have little knowledge to work with to think rationally. You need to watch more than FOX news.
Socialism: Any of various theories or systems of social organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy. — As per the American Heritage® Dictionary of the English Language, Fourth Edition.
Now I’m sure you’re screaming “yes! yes! Don’t you see? The government is controlling health care and therefore becoming socalist!” But stop and think for a minute… the water you use to wash, cook, and drink is processed by a municipal public works department. The packages you send are transported by a postal service system that is government owned and operated. The roads you use to get to and from work, school, church, the park, and everywhere else you go are also built and maintained by the government and tax money. The Police and Fire Departments exist because of tax money and are supervised by, you guessed it, the government. So with all these systems already functioning in our society, how is it that we haven’t yet become socialist?
The government isn’t the one providing the health care, but only setting rules and regulations as to what insurance companies can and can’t do in the process of providing health care to the American people. I personally know many people who will benefit from this bill and will finally be able to obtain the health insurance they desperately need so that they won’t have the burden of thousands of dollars in medical bills.
The means of production are still all in private hands. Look in your local grocery store, all the produce there is produced by private companies. Your government only regulates them so they won’t poison you because of apathy or for bigger profits. The insurance companies are still in business they just got 30 million new customers.
Please do some research before you write!
CBO is created in 1974.
It is after Medicare & Medicaid being created!!!
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