The USPTO is fully fee-funded, at no cost to the taxpayer (http://www.uspto.gov/news/speeches/2011/kappos_house_2012budget.jsp).
Regarding multiple rejections, this is common in patent prosecution. A first Office Action is almost always Non-Final. Applicant has the opportunity to rebut the arguments of the examiner and/or file amendments to overcome the alleged prior art. If these arguments and/or amendments are not persuasive, or the examiner has new rejections (such as new prior art) necessitated by the amendments to the claims, the next Office Action is generally Final. At that point, applicant may either appeal the rejection to the Board of Appeals, or applicant may file a Request for Continued Examination, paying the USPTO a fee to consider additional arguments or amendments. Many cases go through several rounds of this process before they are either allowed to issue or are abandoned by applicant.
This process does not mean that the same application is being re-submitted (re-filed, I assume the parent means). That would generally mean a continuing application or a divisional application, and those (are supposed to) go to the same examiner who examined the original application, especially if the claims are not patentably distinct.
What generally happens is that the applicant finally argues persuasively or submits a sufficient amendment to overcome the art of record, and the examiner can't find prior art sufficient for a rejection of the amended claims. And yes, such a case ought to have an effective date as of its filing. The point is that you invented it as of the filing date, so you are entitled to patent protection from that date, regardless of delays at the USPTO or the lag caused by ordinary prosecution.