For decades the federal government has become an increasing burden and hidden tax on the American people, free enterprise and prosperity through regulation. Republicans and Democrats are to blame. Under the Obama administration, federal regulation has increased significantly, hampering much needed economic recovery. Federal regulation costs money. A lot of it.
According to a new report released by the Competitive Enterprise Institute, federal government regulation is costing Americans a whopping $1.885 trillion per year. That breaks down to $15,000 per household.
"The national debt now stands at $18.9 trillion.11 That is alarming. Yet the federal government’s reach extends well beyond Washington’s taxes, deficits, and borrowing. Federal environmental, safety and health, and economic regulations affect the economy by hundreds of billions—even trillions— of dollars annually in addition to the official dollar outlays that dominate the federal policy debate," the report states. "Firms generally pass the costs of some taxes along to consumers. Likewise, some regulatory compliance costs borne by businesses will find their way into the prices consumers pay, affect the wages workers earn, and lead to lower levels of growth and prosperity."
Here are the key findings from the report, bolding is mine:
-Federal regulatory costs are now at $1.885 Trillion.
-If one assumed that all costs of federal regulation and intervention flowed all the way down to households, U.S. households would “pay” $14,842 annually on average in a regulatory hidden tax. The “tax” exceeds every item in the budget except housing. More is “spent” on embedded regulation than on health care, food, transportation, entertainment, apparel, services, and savings.
-The George W. Bush administration averaged 62 major regulations annually over eight years, while the Obama administration has averaged 81 major regulations annually over seven years.
-If U.S. regulation were a country, it would be the ninth-largest economy, ranking behind India and ahead of Russia.
-Some 60 federal departments, agencies, and commissions have 3,297 regulations in development at various stages in the pipeline.
-The top five federal rulemaking agencies account for 41 percent of all federal regulations. These are the Departments of the Treasury, Commerce, Interior, Health and Human Services, and Transportation.
Presidential executive orders also carry an extraordinary cost.
You can read the entire report here.