Taxpayers Have Little to Celebrate on Dodd-Frank Anniversary

Today marks the one year anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, another costly regulatory package that has stunted economic growth.  As we noted at its passage, Dodd-Frank does nothing to mitigate a future potential crisis while imposing over 400 job-killing regulations cloaked in empty rhetoric about consumer protection.  With new business creation at a 17-year low, its time for the House of Representatives to revisit some of the key provisions of Dodd-Frank, an overhaul we reviewed in our 2010 Cost of Government Day Report.

This afternoon, House members will have the chance to do just that, as Rep. Sean Duffy’s act to improve Dodd-Frank comes to the floor.  In his Washington Times editorial this morning, Rep. Duffy came to the defense of the “main street” community banks who will be hardest hit by Dodd-Frank’s onerous regulations.  By imposing an estimated 2 million labor hours and $1.25 billion in compliance costs, Dodd-Frank and the Consumer Financial Protection Bureau it created will make local banks spend more of their time and money complying with regulators and less meeting the needs of their customers.  A year later, Dodd-Frank’s promises are unfulfilled, but its costs are real and if Congress is serious about stimulating job creation, placing checks upon an unaccountable new agency and implementing common sense reforms to the regulatory process are good places to start. Stay tuned for the launch of the 2011 Cost of Government Day Report, which will discuss the imminent threat Dodd-Frank and its myriad rules and regulations place on economic prosperity.