New Report Reveals $1.863 Trillion Cost of Federal Regulations

The Competitive Enterprise Institute released its annual “Ten Thousand Commandments” report on Tuesday. In it, author and Vice President for Policy at CEI Clyde Wayne Crews exposes the hidden costs of the nation’s regulatory state. 

The regulatory burden is often overlooked because “costs are difficult to quantify because, unlike taxes, they are budgeted and often indirect,” said Crews. In 2013, the report states that federal regulations drained $1.863 trillion from the American economy. On the global scale, that $1.863 trillion price tag would peg U.S. regulatory costs as the world’s tenth ranked economy, more than the entire GDP of Canada ($1.82 trillion) and India ($1.84 trillion).

The 2014 report’s findings also include:

-  $14,974: the price each household pays to cover regulatory costs.

-  72: the number of new laws in 2013 which has led to 3,659 new rules, or a new rule every 2.5 hours.

-  191: number of “economically significant” rules costing more than $100 million each in annual compliance costs. 

-  79,311: pages of regulations in the 2013 Federal Register, the fourth highest ever.  Atop the list are 81,405 pages in 2010 and 81,247 in 2011, both years under President Obama’s watch.

-  $10,585: average price per-employee for small business (fewer than 20 employees) to comply with regulatory costs. In comparison, businesses with 500 or more employees pay $7,755 for each worker.

The regulatory burden imposed by the Obama administration has stymied economic growth and has led to fewer jobs and lower incomes. The President has imposed his political agenda through regulation, adding hidden taxes that costs citizens more and restricts innovation. Each year, the Cost of Government Center produces the Cost of Government Day Report, which looks at these costs and calculates how many days the average American must work to pay off the burden of government regulation. Last year, workers toiled until July 13 to pay for all the costs imposed by government spending and regulation at the federal, state and local levels.

Do you think Americans will be working longer to pay for government in 2014? Why or why not?

TAGS: Spending, Regulation, issues

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