Governor Andrew Cuomo (D-N.Y.)
When the political class sets lofty, but unrealistic goals it’s time to hold onto your wallet. That’s sound advice for New York energy consumers who must now foot the bill for a renewable energy scheme that will cost $1 billion in it’s first two years alone and go into effect beginning in April 2017. That’s when all of the state’s utilities and other energy suppliers will be required to cover the cost of carbon-free emissions from nuclear power plants by purchasing Zero-Emission Credits also known as ZECs.
While Congress is home for their annual summer recess, federal agencies and the Obama Administration continue their output of new rules and regulations meant to give the executive branch greater authority, putting taxpayers at risk. The latest rule is the “Defense to Repayment Regulations” rule and comes from United States Department of Education (US ED). The new rule is said to protect students, but in reality it will cost taxpayers and is merely a bailout for student loans. The rule would “prohibit pre-dispute arbitration agreements and class action waivers and create a stampede to file claims for loan forgiveness based on a newly broadened, vague standard.” This is unacceptable and TPA believes Congress should be the authority on any commitment of taxpayer dollars for repayment of student loans. This new rule would cost anywhere from $2 billion to $43 billion according to the US ED’s own analysis, rule-making of that scale must not be done through agency declaration. Keeping that in mind, TPA joined a coalition led by American Commitment signing this letter sent to US Ed Secretary John King opposing the rule and calling on Congress to make any decision regarding student repayment.
You can read the full letter below:
This article originally appeared in Townhall.com
The House Energy and Commerce Subcommittee on Oversight and Investigations held a hearing on April 15th to address yet another failure of Obamacare: the bailing out of insurance companies through the reinsurance program. Created to financially protect insurers during the early years of the implementation of the legislation, the Transitional Reinsurance Program established by the Affordable Care Act requires the Centers for Medicare and Medicaid Services (CMS) to deposit a certain portion of fees, $5 billion to be exact. The fee was to be collected by the Treasury for deficit reduction, but for the past two years, much of that has been illegally paid out to health insurers instead. It’s no surprise that Obamacare has been riddled with setbacks and broken promises. When the law was enacted, the President assured Americans that patients would come first and health insurers would be held accountable for providing affordable coverage, but the reality is quite the opposite. Patients don’t come first when it comes to Obamacare, insurance companies do.
This article originally appeared in Inside Sources on September 22, 2015
As if Solyndra’s monumental failure was not enough of a blow to taxpayers, a new report from the Department of Energy inspector general four years in the making finds the infamous solar company deliberately deceived Energy to secure millions of dollars from the federal government (read: taxpayers). What’s more, it appears the Obama administration was at the helm of the scandal. There’s no surprise that the administration refuses to see the truth about solar power considering that the vice president pledged an additional $102 million grant program for companies, universities and research laboratories to further expand solar power use. It is clear that the administration is ignoring all warning signs and doing whatever it can to shovel more tax money to an unproven and financially risky power source. Solyndra quickly became synonymous with wasteful spending and government absurdity after it received $535 million from taxpayers then went bankrupt. And, when news broke in 2011 that Solyndra was laying off 1,100 employees, just two years after receiving the loan guarantees, much of the American public was outraged.
In July 2008, as the Financial Crisis was reaching a peak point, the United States Government began to consider a federal takeover of Fannie Mae should the housing market further deteriorate. In September of 2008, that’s exactly what happened and in "one of the most sweeping government interventions in private financial markets in decades," the Federal Housing Finance Agency announced that Fannie Mae (and Freddie Mac) would be placed into conservatorship. Shortly after, the mortgage giant received a taxpayer-funded bailout to the tune of $116 billion. With that in mind, TPA joined National Taxpayers Union, Competitive Enterprise Institute, 60 Plus Association, Campaign for Liberty, Campaign to Free America, Center for Freedom and Prosperity, ConservativeHQ.com, Council for Citizens against Government Waste, Less Government, R Street Institute, Taxpayers for Common Sense, Tea Party Nation, and Able Americans signing this coalition letter urging the passage of H.R. 1673, the Enterprise Secondary Reserve Taxpayer Protection and Government Accountability Act of 2015, introduced by Rep. Marsha Blackburn (R-Tenn). This legislation would would prevent another taxpayer bailout of Fannie/Freddie.
Click 'read more' below to read the full letter
Every Tax Day is a painful reminder of how all levels of government waste taxpayer dollars. News coverage of an April 15th press event with new General Motors CEO Mary Barra (read here and watch here) is a harsh reminder of the $10 billion taxpayers lost in the federal government bailout of “Government Motors.” And now, the ongoing troubles with their safety recall of 1.6 millions vehicles and the lack of answers made available at a series of Congressional hearings only add insult to injury. There was much debate when the government bailed out GM back in 2009 and taxpayers were promised a return on the nearly $50 billion investment. However, in late December 2013 the U.S. Treasury Department announced it had sold back its remaining shares of GM stock - at a loss of $10 billion. As reported by USA Today, the now-departed CEO Dan Akerson said at the time that he did not think the automaker should repay the $10 billion. So $10 billion later, taxpayers also started the New Year to news that GM was recalling 1.6 million vehicles due to a safety issue that is connected to 13 deaths and another 31 injuries. We then learn that the company knew about the safety default and sat on it for nearly a decade.
Fannie Mae, DC HQ (Manuel Balce Ceneta, AP/ August 8, 2011)
In July 2008, before the height of the 2008 Financial Crisis, the United States Government began to consider a federal takeover of Fannie Mae should the housing market further deteriorate. Just a few short months later, that’s exactly what transpired and in "one of the most sweeping government interventions in private financial markets in decades," the Federal Housing Finance Agency announced that Fannie Mae (and Freddie Mac) would be placed into conservatorship. Shortly after, the mortgage giant received ataxpayer-funded bailout to the tune of $116 billion and after more than four years the American taxpayer still hasn’t been fully compensated, and the housing market remains clouded with uncertainty.
Fannie Mae is the nation’s biggest buyer of home loans and guarantor of mortgages bundled for sale to investors and now a story out Monday, May 27th, reveals major allegations of corruption at the government-run Fannie Mae. The details that have emerged make it almost impossible for anyone to be pleased with the fact that this is an organization that is operating at the cost of the taxpayer and what they allegedly are doing with the money they’ve been given is nothing more than corruption of the worst kind. The Los Angeles Times, in an article titled “Kickbacks as 'a natural part of business' at Fannie Mae alleged” details how “investigators are now looking into assertions” by former Fannie Mae employees that kickbacks were "a natural part of business" at the government-sponsored entity. Armed with information coming from wiretapped conversations and a sting operation, investigators allege Fannie Mae Foreclosure Specialist Armando Granillo demanded a 20% cut of commission amounting to an illegal kickback for steering foreclosure listings to brokers.
On Monday (January 14) the Taxpayers Protection Alliance showed that bankrupt doesn’t mean the taxpayer-funded gravy train has to stop, with a bankrupt Solyndra still receiving taxpayer funds (read previous blog posting here). Today’s blog examines two contracts the government awarded to the law firm Morrison & Foerster to assist in the cleanup of the failed Solyndra experiment. These examples reveal an alarming trend, one that doesn’t look like it’ll stop anytime soon—especially considering that one of the contracts was modified as recently as November 2, 2012. There is no telling when the government will stop punishing taxpayers for mistakes made by the government.
Even though the now infamous Solyndra has disappeared from the headlines, the financial mess of Solyndra still takes its toll on taxpayers. Not many people have reported that over the past year the Departments of Energy (DOE) and Justice (DOJ) have doled out approximately $2.5 million in taxpayer money to clean up the ripple effects of the failed Solyndra experiment. Unfortunately, the federal government has failed to realize that when you’re in a hole, quit digging. This blog is the first in a two-part series of a closer examination of Solyndra. Today’s examination involves two of the three companies, Lazard Freres & Co. and Labat Anderson. The second blog, tomorrow, will discuss federal contracts awarded to the law firm Morrison & Foerester. According to the Heritage Foundation, the awards and contracts are separate from the money awarded to Solyndra as part of the loan guarantee program in the Energy Policy Act of 2005. When the government willingly risked $570 million of taxpayer money to fund Solyndra, there was good reason to be upset. But it reaches a whole new level when the federal government continues to award contracts intended to clean up the very mess it created. It’s ironic that the government is spending even more taxpayer dollars in an attempt to recoup the money it never should have spent. So how many companies received Solyndra-related contracts? How much money was awarded and for what purpose? Three companies were awarded four different contracts totaling an estimated value of $2.5 million in taxpayer money. All involve throwing good money after bad in hopes of ameliorating the problems that the government’s poor discretion caused in the first place.
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The Taxpayers Protection Alliance (TPA) joined with seven other taxpayer and free market groups to oppose H.R. 6477, the so-called "Taxpayer Protection Act," introduced by Representative Albio Sires (D-NJ). Even though the bill is named the “Taxpayer Protection Act,” the bill does not protect taxpayers and could potentially burden taxpayers with billions of dollars in liabilities by creating a massive federal government-run reinsurance plan and establishing a loan program to facilitate state bailouts. The reinsurance and bailout provisions in H.R. 6477 represent a tremendous expansion of the federal government's role in insuring and guaranteeing against losses that are now covered by the private sector. In establishing such programs, this legislation would discourage fundamental reform in states like Florida, whose ruinous Hurricane Catastrophe Fund has upwards of $18 billion in liabilities and would be unable to pay billions of dollars in claims if a sufficiently large storm were to strike. Perhaps even worse, it could encourage other states to create similar programs that are designed to fail in order to capitalize on easy money from federal taxpayers.