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Posted on Mar 27, 2015 in Ron Paul Press

Regulatory tax harms small businesses and families while benefiting crony capitalists

The Competitive Enterprise Institute recently released the 2014 version of Ten Thousand Commandments, its yearly

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report examining the growth of the regulatory state, and explaining how federal regulations affect the American people’s economic well-being. Not surprisingly, the study finds that the “regulatory tax” is just as damaging to the economy as other forms of taxation.

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According to the study, Americans spent more than the Gross Domestic Products of Canada and Australia complying with regulations in 2013. The study finds that when the cost of the “regulatory tax” is combined with the federal budget the federal government controls 31% of the American economy. And that does not count the costs of taxes, spending, and regulations imposed by state and local governments.

The cost of the regulatory state does not hit all businesses equally.

Regulatory compliance costs businesses with fewer than 20 employees an average of $10,585 per employee, compared with the $7,755 per employee compliance cost paid by businesses with 500 or more employees. Small businesses also cannot afford legions of attorneys to keep track of new regulations. Most small businesses also cannot hire well-healed K Street lobbyists to advocate for new laws and regulations that benefit themselves and hurt their competitors. There is also no way to measure the number of businesses never created because of the costs of regulations.

Campaign for Liberty will continue to work to roll back the regulatory state, as well as reduce taxes, spending, and Audit (then End) the Fed. Please support our efforts.

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