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 The cost of regulations in America

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Jimmy Herbert Wesson


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MessageSujet: The cost of regulations in America   Sam 9 Juin - 1:05

Nous sommes très loin de l'idéal jeffersonnien.

New study finds federal regulations cost the American public $1.1 trillion

A study conducted by W. Mark Crain, a George Mason University economist determined federal regulations cost consumers and businesses $1.1 trillion every year, with a disproportionate burden falling on small businesses. affraid affraid If each American household paid an equal share, each would owe $10,172. Crying or Very sad

According to the study, these regulations cost $2,400 on a per-employee basis, creating a financial burden that is 45 percent greater for small businesses. Shocked

Environmental and tax compliance regulations are the driving force in what causes the most severe burden on small businesses. For example, the cost of tax compliance is 67 percent higher in small firms than the cost in large firms.

Even though regulations burden businesses, it does not mean consumers are not affected. Often times, businesses will look to pass on the regulatory costs to consumers, when they can, in the form of higher prices. Surprised

Federal regulations are frequently overlooked by the general public and are less visible than taxes or spending. Through regulation, Congress can implement new programs without having to spend tax dollars to fund them. According to the Cato Institute, the passing of new regulations allows Congress to avoid accountability and blame agencies for costs.

In the absence of a third party evaluation, it is unclear whether the 'benefits' truly outweigh the 'costs' of a federal regulation, since many agencies perform self audits that almost never declare a particular regulation unnecessary.

Posted by Matthew Dailey at September 27, 2005 03:26 PM
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