The Cost of Government, Cell Phone Fees and the Housing Bailout
American for Tax Reform prepares to observe “Cost of Government Day.”
Verizon settles a lawsuit over its “early termination” fees for mobile phone customers.
The Senate is poised to pass major new housing legislation.
1. CONSUMER
American for Tax Reform prepares to observe “Cost of Government Day.”
CEI Expert Available to Comment: Vice President for Policy Wayne Crews on the expenses incurred by federal regulation:
“The bottom line is that federal government regulations ate nearly 10 percent of what the U.S. economy produced last year. At the same time government is also spending more than ever before – $2.73 trillion; and the President has submitted a $3 trillion spending plan for next year. Between paying for government and paying to comply with government regulations, it’s a crushing burden for American businesses and workers.”
2. LEGAL
Verizon settles a lawsuit over its “early termination” fees for mobile phone customers.
CEI Expert Available to Comment: Research Associate Ryan Radia on why termination fees in telecom contracts are no different from those for any other product:
“Despite intensifying opposition to early termination fees, these fees are really nothing new. Aside from telecom services, consumers have long had the choice of signing long-term contracts that involve early cancellation charges. Renters typically sign 12-month apartment leases, and are usually required to pay a breakage fee if they back out of their lease early. Similar contract clauses are often found in fitness center memberships and automobile leases. Are all these incarnations of early termination fees fair game for government regulation, too?”
3. POLITICS
The Senate is poised to pass major new housing legislation.
CEI Expert Available to Comment: Special Projects Counsel Hans Bader on some of the questionable beneficiaries:
“ACORN is a radical left-wing group with ties to liberal politicians that will receive taxpayer subsidies through the Congressional mortgage bailout legislation nearing passage. (Bush has expressed distaste for the legislation, which Congressional leaders love, but may not follow through with his earlier threat to veto it). ACORN hid massive embezzlement for years in an attempt to prevent public scrutiny of its finances and in order to prevent the embezzler, the brother of its founder, from being prosecuted. ACORN helped spawn the mortgage crisis by promoting ‘liar loans.’ ACORN also engages in voter fraud intended to benefit liberal politicians.”