I can "hear" some authors now saying, "So what, the CPSIA problem isn't mine, but my publisher's."
IF small presses go out of business because they can't test every batch of books (each batch is one print run or order, tested various times if the run is a large one because different sources of ink, paper, glue, etc. may be used in a large run), then writers will have fewer opportunities to submit their work, fewer opportunities to be published.
Small publishing houses that manage to meet the financial price of testing will accept fewer, much fewer, submissions, resulting in fewer authors being published.
Large publishing houses will probably have to lay off employees to cover the cost of testing. New manuscripts from unknown or not-well-known authors are already being ignored due to the financial situation. Fewer manuscripts will be read except from established and/or famous authors.
The financial burden on publishers will mean lower royalties for authors, and the houses that give advances will offer lower, much lower advances.
Yes, this law directly affects authors, too.
For information from a different point of view visit Do I Have to Spell It Out.