In response to the housing collapse and financial crisis of 2007-08, Congress rushed to pass the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act under the guise of “consumer protection.” But instead of addressing the root causes of the financial crisis, such as the government’s reckless efforts to expand housing affordability and implied guarantee to bail out large financial institutions, Dodd-Frank empowers the very regulatory establishment which created the environment that led to the financial crisis in the first place.
Heritage Foundation Financial Regulations expert Norbert Michel writes:
“The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act is among the most inappropriately named laws ever enacted in the U.S. It neither reformed Wall Street nor protected consumers, and it imposed massive new regulations on banks far away from Wall Street.”
Conservative accountability goes beyond casting a vote. Building a society in which freedom, opportunity, prosperity, and the civil society flourish requires a sustained effort. That is why we have compiled a non-exhaustive list of upcoming townhalls, all of which provide excellent opportunities to discuss important issues with members of Congress.
As always, make sure to confirm the details with the Representative or Senator’s office.
Email Matthew.Lauer@heritageaction.com for any further details.
On July 12, 2016, the Oversight and Government Reform Committee (OGR) rushed to pass legislation bailing out the U.S. Postal Service (USPS)—the so-called Postal Service Reform Act (H.R. 5714)—without a cost estimate from the Congressional Budget Office (CBO) or a recorded vote. In the process, OGR released a rebuttal document in response to Heritage Action’s statement of opposition. The following are responses to those rebuttals.
Rebuttal #1: “There is a lot for Conservatives to like in this bill. H.R. 5714 treats the Postal Service more like a private sector business. The bill cuts Postal Service costs while also taking away the strongest anti-reform argument: that the agency is only struggling because of an ‘unfair’ retiree health care requirement.”
Response: There is a reason liberal Democrats and USPS support H.R. 5714. It rewards the Postal Service, and its constituencies, with their number one priority for years—relief from their current health care contributions in exchange for few reforms. In fact, it is the important reform principle established in 1971 that USPS should be treated more like a business—responsible for both its assets and liabilities—that is grounds for opposition to the bill. The bill shifts liabilities to taxpayers.
When setting up the Obamacare exchanges, three “risk mitigation” (read: bailout) provisions were written into the law to incentivize large health insurance companies to participate in the government takeover of our healthcare industry. The three bailouts are known as the risk corridors, reinsurance, and cost-sharing subsidies. Despite these cronyist “risk mitigations” for big business, Obamacare has been an unmitigated disaster for the average citizen’s health plans and tax dollars. In fact, due to these bailout options, some of the worst fiscal consequences for the taxpayers are potentially yet to come.
As The Heritage Foundation explained last year, the reinsurance program funneled nearly $8 billion to Obamacare insurers in 2014, paid for “by a tax on everyone with non-Obamacare coverage.” Highlighting the problems with the reinsurance bailout provision, Chris Jacobs at National Review writes:
This week the House Oversight and Government Reform Committee will hold a markup of the 2016 Postal Service Reform Act. Postal reform has been a priority of the Heritage Foundation since at least 2003, and Heritage Action since its formation. Heritage Action is opposed to this legislation. Below is run down of the major concerns with the legislation as drafted.