01-23-2019 08:31:19 AM -0800
01-22-2019 03:48:51 PM -0800
01-22-2019 10:41:19 AM -0800
01-22-2019 08:10:28 AM -0800
01-22-2019 06:44:33 AM -0800
It looks like you've previously blocked notifications. If you'd like to receive them, please update your browser permissions.
Desktop Notifications are  | 
Get instant alerts on your desktop.
Turn on desktop notifications?
Remind me later.
PJ Media encourages you to read our updated PRIVACY POLICY and COOKIE POLICY.
X


Stretch, grab a late afternoon cup of caffeine and get caught up on the most important news of the day with our Coffee Break newsletter. These are the stories that will fill you in on the world that's spinning outside of your office window - at the moment that you get a chance to take a breath.
Sign up now to save time and stay informed!

Here's What Federal Regulations Cost Your Family This Year

Anyone who has ever traveled to Washington, D.C.m knows that as majestic as the White House and the U.S. Capitol are, they are a mere fraction of the federal government. Alphabet soup departments like the EPA, IRS, VA, HHS, DOE, and others most Americans have never heard of take up space in the capital and amount to a hidden regulatory tax on all Americans.

In fact, a new report estimated that if the costs of federal regulation flowed down to U.S. households, the average American family would pay $14,809 annually in a hidden regulatory tax. That's $14,809 in addition to income taxes, state taxes, and Social Security. $14,809 in addition to sales taxes, property taxes, and even estate taxes — where the government taxes you for being dead.

"That amounts to 21 percent of the average income of $69,629 and 26.45 percent of the expenditure budget of $55,978," wrote Clyde Wayne Crews, Jr., vice president for policy at the Competitive Enterprise Institute, in the report "Ten Thousand Commandments" released Wednesday.

The average American family would spend more on embedded regulation than on health care, food, transportation, entertainment, and apparel. Only housing costs more.

Crews analyzed federal government data, past reports, and newer studies to estimate the economic impact of federal regulatory compliance at $1.9 trillion each year. When numbers get that big, it becomes hard to understand them. But a hidden tax that costs each family roughly $15,000 per year, that makes sense.

Liberals and others would point out that no family specifically pays this price, and that is indeed true. But regulations hold back economic progress and make wealth creation harder to come by.

How many entrepreneurs give up on new business opportunities because it is too complicated to hire someone? How many small businesses fail because compliance costs exceed their profit margins? Then there are the increased costs to the larger firms which won't go out of business when the government adds red tape, but will make ordinary goods just that much more expensive.

Regulation is a silent killer, and it grows even when Americans didn't vote for it. In 2016, for example, Congress enacted only 214 laws, but federal agencies issued 3,853 rules. The lack of public accountability — when was the last time you voted for the EPA secretary? — means these bureaucrats aren't held accountable in the same way as members of Congress. So they can issue 18 rules for every law enacted by the people's representatives.

The 2016 Federal Register runs to 95,894 pages, the highest level in its history, and 19 percent higher than the previous year's 80,260 pages.

That's also just the rules officially issued. Sixty federal departments, agencies, and commissions have another 3,318 in development. The five most active rulemaking agencies are the Department of the Treasury, the Interior, Transportation, Commerce, and the Environmental Protection Agency.