Report: Americans face $1.8 trillion in annual regulatory costs

 Ten Thousand Commandments

One of the most dangerous, least often talked about threats of the governmental regulatory machine is how much of our money is engulfed in the regulatory process, putting the country deeper into debt.

The Competitive Enterprise Institute has just released its annual report on the general state of U.S. federal regulations and what is known as the “hidden tax” of the U.S. regulatory state known as the Ten Thousand Commandments.

Because regulations are proposed and enacted without allowing for a substantial review of their cost-benefit and its open discussion, Americans are hit with the consequences of the growth of the regulatory state where it hurts the most: their wallet.

“Federal agencies crank out thousands of new regulations every year,” says CEI Vice President for Policy Wayne Crews, “but we have little information on the cost or effectiveness of most of them.” According to Crews, one of the main issues with this process is the lack of transparency since few of us have access to reliable sources of information on what the regulations hope to accomplish.

The cost of the regulatory mess we find ourselves in adds hundreds of billions to our debt, which is why this report is so important. CEI Vice President for Policy warned the public that action is needed.

“Most of the country is focused on our spending and debt problem, but unless we also address our nation’s regulatory burden, our economy will remain under water,” said Crews. “When compared to federal spending, the cost of federal regulations was more than half the size of the federal government’s 2013 budget of $3.5 trillion, and this is part of what is holding back American innovation and wealth creation.”

According to CEI’s Ten Thousand Commandments report, every household in the United States is an average of $14,974 poorer each year because of the U.S. regulatory costs.

When new regulations are proposed, the costs of implementation are never discussed and that procedure is what causing the country to dedicate $1.863 trillion in 2013 alone.

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