The hidden tax of federal regulation cost businesses and consumers an additional $1.187 trillion last year—none of which shows up in the federal budget. Regulation eats up an additional 8.3 percent of GDP. We have to work an additional 34 days to pay for the federal regulatory burden.The federal government is metastasizing into an enormous, out-of-control tumor on the body politic. It’s time for radical surgery.
It’s tempting to brush off regulatory costs, since most of them are borne by businesses. But remember, businesses pass on their costs to consumers. We all pay for the cost of the regulatory state.
Friday, April 23, 2010
But wait, there’s more!
The cost of big government isn’t just reflected in income taxes and deficit spending. As Clyde Crews and Ryan Young point out, regulatory costs amount to a hidden tax that exceeded $1 trillion last year. And it is a particularly insidious “tax” because it is practically invisible.