Only One Expense Cost You More Last Year Than This ‘Hidden Tax’

Obama Tongue in Cheek

[vc_row][vc_column][vc_column_text]Virtually everything in society is taxes, with government getting mob-like slices of almost all human movement and activity. Even death is considered a taxable event.

But a hidden and extremely costly tax, which largely flies under the radar, is taking an ever-increasing burden on American citizens.

[/vc_column_text][banner300 banner=”5517620b381df”][vc_column_text]Yes, government regulations are a slow-dripping poison on individual freedom and liberty, but the cost of these regulations is sucking thousands of dollars of productivity right out of your wallet each year.

And it’s getting worse. Much worse.

According to a new report from CEI, the Competitive Enterprise Institute, the cost of federal regulation alone reached $1.88 trillion in 2014, which equates to a hidden cost of approximately $15,000 per household.

The report shows that amount represents almost a quarter, a whopping 23% of the average income of an American household ($63,784), and that this “hidden tax” is a larger expense than what is spent on health care, food, transportation, entertainment, or clothing. Only housing is a larger expense.

The stunning report, called Ten Thousand Commandments – An Annual Snapshot of the Federal Regulatory State, revealed that while 224 laws were passed by Congress last year, entrenched, unelected bureaucrats inflicted a whopping 3,554 new regulations, the equivalent of laws.

Article I, Section 1, of the U.S. Constitution states that only an elected Congress has lawmaking authority: “All legislative powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.”

Therefore, the “Unconstitutionality Index” was 16, meaning there were 16 times more unconstitutional regulations issued by government bureaucracies than were passed lawfully by Congress and signed by the president.

Other revelations included:

  • Of the 3,415 regulations now in the works, 674 affect small businesses. Of those, 374 required a regulatory flexibility analysis; 300 were otherwise noted by agencies to affect small businesses.
  • The five most active rule-producing agencies—the departments of the Treasury, Interior, Commerce, Transportation, and Health and Human Services—account for 1,453 rules, or 43 percent of all rules in the Unified Agenda pipeline.
  • The Environmental Protection Agency, which was formerly ranked consistently in the top five, is now sixth, but adding its 186 rules brings the total from the top six rulemaking agencies to 1,639 rules, or 48 percent of all federal rules.

“If it were a country, U.S. regulation would be the world’s tenth-largest economy, ranking behind Russia and ahead of India,” the report demonstrated.

[/vc_column_text][banner300 banner=”553157113d3ff”][vc_column_text]The timeless wisdom in Ronald Reagan’s timeless and humorous quote has never been more true:

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

 

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About the Author

Matthew K. Burke
Matthew K. Burke
A former Washington State U.S. Congressional candidate in 2010, Matthew attended the nation’s first modern day Tea Party in 2009 in Seattle, Washington. He also began writing and blogging that year. Matthew became a Certified Financial Planner in 1995 and was a Financial Advisor for 24 years in his previous life. Matthew was one of the three main writers leading a conservative news site to be one of the top 15 conservative news sites in the U.S. in a matter of months. He brings to PolitiStick a vast amount of knowledge about economics as well as a passion and commitment to the vision that our Founding Fathers had for our Republic.
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