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"Lessig (2011, p. 269) notes that the cost of this is tiny relative to the cost of corporate welfare, estimated at $100 billion in the 2012 US federal budget. However, this considers only direct subsidies identified by the Cato Institute. It ignores tax loopholes and regulatory and trade decisions, encouraging business mergers and other activities that can stifle competition, creativity and economic growth; the direct subsidies can be a tiny fraction of these indirect costs.[citation needed]
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