Regulations: The $1.8 Trillion Gorilla in our Economy

Thursday, September 20th, 2012 and is filed under Blog, Economy, Taxes

Share with your friends

As we’ve noted a number of times, market-distorting regulations represent the most pernicious and regressive tax on all Americans, as they raise the cost of vital goods and services, destroy jobs, and reduce income and investments.  For all the talk of 47% of Americans not paying income taxes (which is true), they actually pay a $1.8 trillion regulatory tax.  Sadly, this tax is hidden in the cost of goods and the lack of jobs.  REPUBLICANS MUST CONNECT THE DOTS!!  Voters won’t do it on their own.

The Competitive Enterprise Institute has done the motherload of all studies on regulatory costs, and they found that the total cost of government regulations is $1.8 trillion.

Think about this for a moment.  The government only collected $1,091 billion in taxes from individuals in 2011.  That is dwarfed by the regulatory tax.

This is why I always say that it’s important to focus on the economic cost of government, not just the budgetary cost.  The EPA costs about $8 billion to run every year.  However, the cost of its regulations to the private economy is immeasurable.  If Republicans were to clearly articulate this point, they would win every election.