Another scheme to spread the taxpayer wealth–this time to the wealthy:
With the taxpayer bill for government bailouts mounting every day, a Washington, D.C.-based free market think tank warns that the recent Wall Street giveaways might be the tip of the iceberg as it raised questions about proposals almost certain to come before Congress that would subject taxpayers to even larger liabilities.
In 2008, the House of Representatives passed the ”Homeowners’ Defense Act” which would have set up an enormous government-run consortium—a national catastrophe fund—that would provide reinsurance for insurance companies that experience large catastrophe-related claims. These large claims are most likely to come from hurricane-prone areas such as Florida’s Gulf Coast and, ultimately, the money would end up in the pockets of wealthy owners of beach-front property. Rep. Ron Klein (D-FL), a lead co-sponsor of the 2008 legislation, has vowed to try again this coming year.
Lehrer says that proposals for national catastrophe funds would redistribute wealth to people who already have a lot of money. ”If taxpayers are disappointed to see more than $100 billion of their money being risked on AIG, then they should just wait for what some in Congress want to do next,” says Eli Lehrer. ”Florida alone has just about $2 trillion in potential coastal losses but taxpayers throughout the entire country could potentially be on the hook for the whole amount.”
More at the link. There’s a petition you can sign there.