A sobering new report on the cost and scope of federal regulations puts the price of the rules at $1.88 trillion annually, a “hidden tax” of $14,976 on every single household, or about 29 percent of an average American’s income.
In “Ten Thousand Commandments,” the Competitive Enterprise Institute also reveals that regulations far more than laws are how the administration rules the land. While Congress, well known recently for doing little, passed 224 new laws last year, federal agencies issued 3,554 new regulations, or 16 per law.
Author Clyde Wayne Crews Jr., CEI vice president for policy, spread the blame for overregulation around, but said that congressional inactivity is partly at fault and he called for reform that would have Congress oversee and even vote on new burdensome regulations.
“Congressional rather than agency approval of regulations and regulatory costs should be the goal of reform. When Congress ensures transparency and disclosure and finally assumes responsibility for the growth of the regulatory state, the resulting system will be one that is fairer and more accountable to voters,” he said in the report.
The study, which he concedes doesn’t capture all the costs of regulations on homes and businesses, also reveals that while President Obama uses regulations heavily, so did former President George W. Bush. Bush used them after 9/11 and Obama has on Obamacare and the environment.
In the rush to regulate, President Obama’s administration has a 16-1 advantage over Congress and Speaker John Boehner. (AP Photo)
Highlights pulled directly from Crews’ report:
— Federal regulation and intervention cost American consumers and businesses an estimated $1.88 trillion in 2014 in lost economic productivity and higher prices.
— If U.S. federal regulation was a country, it would be the world’s 10th largest economy, ranking behind Russia and ahead of India.
— Economy-wide regulatory costs amount to an average of $14,976 per household – around 29 percent of an average family budget of $51,100. Although not paid directly by individuals, this “cost” of regulation exceeds the amount an average family spends on healthcare, food and transportation.
— The “Unconstitutionality Index” is the ratio of regulations issued by unelected agency officials compared to legislation enacted by Congress in a given year. In 2014, agencies issued 16 new regulations for every law — that’s 3,554 new regulations compared to 224 new laws.
— Regulatory compliance costs exceed what the IRS is expected to collect in both individual and corporate income taxes for last year — by more than $160 billion.
— Some 60 federal departments, agencies and commissions have 3,415 regulations in development at various stages in the pipeline.
— The 2014 Federal Register contains 77,687 pages, the sixth highest page count in its history. Among the six all-time-high Federal Register total page counts, five occurred under President Obama. The George W. Bush administration averaged 62 major regulations annually over eight years, while the Obama administration has averaged 81 major regulations annually over six years.
Paul Bedard, the Washington Examiner’s “Washington Secrets” columnist, can be contacted at [email protected].
