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The ad hoc takeovers, bail-outs and guarantees of recent months have vastly expanded the federal safety-net and increased potential taxpayer liability by trillions of dollars.
Under pressure from the British and Dutch, bailout loans required Iceland to accept some taxpayer liability for Icesave deposits from overseas.
But Mr. Cohan argued that the dispute between USA Commercial investors and Silar should be reviewed, given the taxpayer liability in the IndyMac deal.
It has become a lightning rod for widespread disenchantment on an assortment of issues like cuts to services, findings of political corruption, taxpayer liability for debts to private banks and even European legislation intended to enhance wastewater treatment from septic tanks.
Despite widespread concern about losses suffered by Fannie Mae and Freddie Mac, the two giant housing finance companies, the Bush administration's call for quick passage of legislation to authorize the use of government funds to save them ran into heavy fire, especially among some Republicans concerned about taxpayer liability.
Taxpayer liability, in effect, is unlimited.
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Created in 2010 by George Osborne, PFI2 aimed to cut long-term taxpayer liabilities and trim excessive profits.
If the builders default, as happened on some nuclear construction projects in the 1980s, the taxpayer liabilities could run into the billions of dollars.
So this implicit taxpayer subsidy creates serious risks for the macroeconomy and contributes to the further buildup of taxpayer liabilities – when any financial system crashes, that causes a recession, reduces tax revenue, and pushes up government debt.
Indeed, if you include federal spending, the New Jersey Medicaid expansion will increase U.S. taxpayer liabilities by as much as $25 billion through 2022.
In the six months that have passed since Kirk's proclamation, the report [PDF] argued, "Instead of taking steps to protect residents and businesses, Illinois' leaders have: increased taxpayer liabilities, deteriorated the state's fiscal environment and incurred an additional debt downgrade by Moody's Investor Services".
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