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  • VIDEO: Growing Red Tape Threatens Economic Growth

    As the economy continues to struggle, a new report highlights ways the government may be making things worse by imposing bigger burdens on business. Our new video breaks down the facts and highlights the impact of this creeping government red tape. While these costs are often invisible, they are nevertheless very real for taxpayers. Heritage’s James Gattuso and Diane Katz explain:

    Many people may think that regulatory costs are a business problem. Indeed, they are, but the costs of regulation are inevitably passed on to consumers in the form of higher prices and limited product choices … Unlike the budgetary accounting of direct tax revenues, Washington does not track the total burdens imposed by its expansive rulemaking. An oft-quoted estimate of $1.75 trillion annually represents nearly twice the amount of individual income taxes collected last year.

    As Mike Brownfield explains, despite some limited progress, President Obama is not doing nearly enough to address these increasing regulatory costs:

    The annual cost of regulation—$1.75 trillion by one frequently cited estimate—represents twice the amount of individual income taxes collected last year. Overall, from the beginning of the Obama Administration to mid-fiscal year (FY) 2011, regulators have imposed $38 billion in new costs on the American people, more than any comparable period on record. Consider Washington’s red tape to be a hidden tax. The mountain of regulations didn’t begin under the Obama Administration. Under the Administration of George W. Bush, for example, $60 billion in additional annual regulatory costs were imposed on Americans. But as Katz and Gattuso write, the rate at which burdens are growing has accelerated under the Obama Administration

    As if that’s not enough, despite these record highs, regulatory burdens are scheduled to increase. Of the 2,785 rules currently in the pipeline, 144 are major—defined as costing at least $100 million annually—meaning that $14 billion in annual regulatory costs are potentially on their way. Congress and the President must act to prevent further harm to our fragile economy.

    Posted in Economics [slideshow_deploy]

    26 Responses to VIDEO: Growing Red Tape Threatens Economic Growth

    1. Jeff, Illinois says:

      This is such a tired GOP talking point . . !!! Let's see what does regulation give us . . oh yeah . . cleaner water and air . . higher quality food . . limits on banking and wall street excesses that created the economic mess . . protections in the workplace for our working people in america . . less exploitation of the consumer. Regulation is not the problem . . the real problem is free trade which guarantees that the industrial base and the middle clase of our country willl continue to decline. If there were appropriate tariffs our companies would not be leaving to other countries, our middle class worker salaries would be protected (look at Germany for example), more people would be employed, creating greater demand and wa la you a strengthening of our economic base, greater tax revenue, and the possibility of the american dream. Instead we have corporate welfare . . where we even re-imburse company moving expenses to move over seas . . give subsidies to the oil industry . . allow wall-street to speculate up the price of commodities excessively and allow the healthcare industry to over-charge for a basic human need . . Oh yeah . . that one is going to improve . . thanks to the present administration.

      • Sue says:

        well the way i see it is, we give big tax breaks to other countries to come here and open a plant but regulate and tax the hell out of our own companies that choose to stay here. How bout we make it fair for everyone.

      • joel white says:

        Speaking of tired talking points, how about the bogus propaganda about nonexistant oil subsidies, the fantasy that there was no clean air or water before the creation of the EPA (which has grown 40% under Obama – so theoretically the air/water/food supply should be 40% cleaner/safer than in 2008), the historical disaster of economic protectionism, the marxist claptrap of the worker vs the prolitariat, the blanket demonization of the American capitalist system, the econimic ideocy that govt imposed price controls are sound and legitmate practice… tired illogical mindless leftist slop.

        • Jeff, Illinois says:

          " Nonexistant oil subsidy " . . Please do a little homework!!!

          " There was no clean air or water before the creation of the EPA " . . What an amazingly ignorant statement !!! . . Yeah, let's just do away with any over-site and start dumping more toxic crap into the air and water. Let's rather continue to move toward a FASCIST CLAPTRAP ! . . Where the GOP is completely sold out to large corporations and we all can eat and drink and breathe money . . or at best only the wealthiest will be able to . . the rest of us will be too sick and poor to.

          • CLAYTON says:


      • Kent says:

        Yeah, Jeff, welcome to your planned economy. Hasn't worked anywhere else, and it won't work here.

      • Jeff, Illinois says:

        Apparently the moderator of this website must have fallen asleep!!

      • akismet-1ad3f4d89ff5189b5834cb394cfcba1f says:

        Sounds like you are rehashing Democratic talking points. The problem with regulations is that you take the power out of the people's hands to decide how far they want to go in scrutinizing a product or service and put it into the hands of a bureaucrat who isn't responsible to anyone for his/her decisions. Sure the water and air are cleaner, but how clean does it need to be? Who should be deciding how clean it should be? There is a point where too clean means to high of a cost to do business and perhaps Americans are willing to live with 1 more part per billion of mercury in their water so that they can have good paying jobs. Regulation is part of the problem. Safety comes at a cost and extreme safety comes a the cost of good jobs. The problem is many fold, but primarily the problem is caused by too big of a federal government taking too much money and redistributing it to their special interest groups and groups that vote for them. You can clean water without regulations. It's called passing laws and if someone breaks the laws you prosecute them. You don't need bureaucrats passing regulations that are not determined by the people to make things better.

    2. As I tweeted: we are in a left wing mess. Need to reboot – new tax system (flat, fair, or combo), open markets for health insurance (repeal O-Care), shutter EPA for a few years. Seems easy and common sense. But then, there's Washington…

    3. Bobbie says:

      talk about getting serous! Why was it allowed to come to this? Taking money for "oversight" doing the job for the government, not the people is intolerable. It's as if everyone under Obama has authority over everyone else? What is the government under Obama's goal? Ongoing impediments over freedom? He's getting boring. When are actions going to be taken to correct Obama's self serve governing where all is or ends up in his favor? While everyone else sacrifices!!!!

      ps using the name Obama references all the like minded when appropriate.

    4. Pingback: Video: Government Overregulation Threatens Economic Growth

    5. Joe says:

      @ Jeff from illinois…let us know when things are going to improve under this Administration. Apparently you haven't paid attention to how destructive they've been thus far. Apparently you are delusional like the rest of the kool aid drinkers out there will support this Administration NO MATTER what….simply because of the Democrat label. Your boy Obama is doing everything he can to prop up Wall Street , and to some degree, large corporations. But, he sure has a target on the backs of small businesses all over this country. More regulations DO NOT mean a utopian society as you described. So far we see how more regulations have stifled them!

    6. RedBaker says:

      Jeff, you need to consider what government costs, and the fact spending has increased about 28% since 2000. The Clinton/Gingrich federal government was 18% of GDP. Obama's is about 25% and growing. The total cost of government spending (federal, state, local) is 41% of GDP. The cost of all regulations is another 20% of GDP, for a total of 61% of GDP. In 1950 it was 30% of GDP. I'm sure you're incensed that "rich people" (employers) are taking a big share of GDP, but what about government? Big, growing government is making "the rich" look like pikers. Wonder where the middle class money is going? To big government; stores, corporations, employers simply pass on rising costs to consumers.

      The total cost of all government divided by the number of households is about $78,000 per year. The median family income is about $50,000. Regulations cost about $3 trillion per year, or $26,000 per household. Spending grand total is $6.0 trillion, or $52,000 per household. Does government really need double the share of GDP as in 1950? Consider, if government were 30% of GDP instead of 61%, the private sector (including you) would increase its share of GDP by 31 points of GDP, or about a 75% increase.

      The "cost of government" items you listed are trivial, cheap; they are not the problem. Consider that the cost of complying with the federal tax code alone is about $300 billion per year, because it is 18,000 pages of complexity.

      • Jeff, Illinois says:

        """ The total cost of all government divided by the number of households is about $78,000 per year. The median family income is about $50,000. """ . . What a meaningless exercise in math. . .

        Obviously you love talking in numbers when . . the main point I was making is about the evil of free trade . . !

        Government's purpose is to balance the playing field. Of course all governments have inefficiencies and corruption. That's unavoidable. But unregulated corporatism would guarantee that America would become a third world economy, where a few at the top would have all the wealth and power, while everyone else would be starving and likely sick from all forms of environmental irresponsibility.

    7. Bobbie says:

      wonder if Jeff is a government recipient or employee? His comments sure reflect favoring government control and their out of control expenses, over the livelihoods of free and independent intelligence. Most people working for government didn't make it in the private sector where people ARE held accountable and their pay is EARNED. Unlike government who can abuse our freedom when government sets their own pay of UNEARNED income off the backs of the tax payers! What kind of people like Jeff, favor government over freedom??? scary unfortunate people with low or no self esteem…

      • Jeff, Illinois says:

        Government and freedom are not mutually exclusive . . ! Again the proper role of government is to level the playing field from exploitation / corporatism! Left unchecked, the natural state of business is not toward altruism. When money making is the """ only """" priority, many will suffer. No one is talking about control . . . that's the thinking of a child!

        • jyrine says:

          Def. government: exercise of authority over, organization, state, nation; control; rule.

          Def. freedom: not under the control or power of another; having civil and political liberty.

          The two are diametricaly opposed/mutually exclusiv


    8. Bobbie says:

      Jeff, I'm not sure I'm understanding you right but I'm willing to try. Government and freedom are exclusive when the Constitution acknowledges that freedom and government interference manipulates freedom.

      What do you mean government's inefficiencies and corruption are unavoidable? That is sickening what little you expect at the cost of government! If government was held accountable, of course these areas are avoidable!!! You want to put government in a role to assure no private sector corruption yet you admit the government themselves can't avoid it??!!!! That's preposterous!

      the proper role of government is to protect and secure the people of this country. Government was in charge of "oversight" and LEFT IT UNCHECKED! Money was never the """"only"""" priority in the private sector. Quality in the mfg of the private sector businesses was always priority where the market consumer determined their success, until government and their overreach stepped in. Why would you want to consciously add inefficiencies and corruption at an increase cost of government??? I pray you change your way of thinking, Mr. Jeff. Government isn't in this area to benefit you, unless you're government.

    9. Jeff, Illinois says:

      Part A

      . . . . the Constitution acknowledges that freedom and government interference manipulates freedom . . is a bazarre understanding of what the constitution is establishing . .

      I'll make an analogy . . the child and parent relationship . . When a home is parented with emotionally healthy and responsible parents a child has greater freedom . . because the child's basic needs are met and likely is also being given appropriate encouragement and relational support. Key to this analogy is a definition of what it is to be free . . ! There's false freedom and appropriate or responsible freedom . . False freedom in this analogy would be the kind of freedom that causes a don't give a d – - n attitude and leads to self-centeredness. Appropriate or responsible freedom allows an individual to meld well into society.

    10. Jeff, Illinois says:

      Part B

      In the analogy the proper function of the parent is somewhat like the role of government . . Now be careful, I'm not literally suggesting that Government plays the role of a parent, but again as an analogy Government best establishes a framework in which society is free . . free to operate in any way that produces greater socio-economic possibility. Of course we can ignore the rules and laws . . written and not . . but then there's consequence. Again at best . . government creates a framework where it's citizenry can play by a set rules . . so that we don't have chaos . . or only self-interest. In the analogy parents and governments are not perfect. But imperfect parents can raise reasonably responsible healthy children. Government is somewhat like this . . it's imperfect (has corruption and inefficiencies) but the alternative is chaos and or self-interest or exploitation.

    11. Jeff, Illinois says:

      Part C

      Again this analogy has flaws . . but the salient point is that society works best when we actually care about others and when Governments work better than not . . . collective societal care insures we have clean air and water, adequate access to resources, the hope and possibility of prosperity etc. etc. with less exploitation. Oh and by the way governments ensure that our borders are secure, that our infrastructure is expanded and that natural events can be compensated for etc . . .

      • Bobbie says:

        YOU are under the total misunderstanding of the PEOPLES AMERICAN CONSTITUTION!

        and because the American people have NO CONTROL over what the government is up to, MAKES US SEPARATE! Just keep in mind every time the president uses the term "we" unless you had a choice to take part in whatever "we" is included in, YOU'RE NOT!!!! but the president wants to convince the minds and insult the intelligent of the country, there's no difference between mankind and government! dangerously wrong, Mr. Jeff.

        It's the Constitution that keeps OUR FREEDOM AND GOVERNMENT SEPARATE!!!!! if you're a true man, reeducate yourself, Mr. Jeff.

        but my goodness, how dare you mock parenting to suggest their role is similar to government!!! it is NOT THE ROLE OF GOVERNMENT TO PARENT!!!!! Please read up, Mr. Jeff. I have faith in you!!!!

      • Blake says:

        Is Government's purpose regulating or protecting? The Constitution grants authority to protect, not regulate or provide for, such things as water, air, land, and resources. It is regulation that curbs the use and the benefits of these things through environmental controls, wealth redistribution, and such. You might think that so much freedom benefits only the gold-seekers, it does, but I also believe that it benefits the likes of businessmen, charities, churches, immigrants, and you.

    12. Rony says:

      Jeff, The government is responsible for securing the border, maintaining the infrastructure and providing aid during natural disasters. How's that working out. They cannot or won't secure our borders and sue states that try to do so. Our infrastructure is old and inadequate and we have no defined energy plan except for no nuclear power plants and no drilling for oil (more government regulation). Finally, our government cannot do anything but throw money at natural disasters Katrina and the horrific tornado that hit Joplin. How's this big government working out for us? Bobbie, you should run for office. We need to replace all of the attorneys and academics with everyday hard working Americans. 536 of the nations best and brightest have created 15 trillion in debt and 60 trillion in unfunded social engineering. We need to chart a new course for our nation.

    13. RobbyRay says:

      It is unfortunate that there are people who actually believe and teach the ideology that Jeff is posting. Worse yet is that the majority of politicians believe the same thing. It's called self preservation. Repealing big government and reducing entitlements will most likely alter his current lifestyle. If I didn't want to work for my food, I would feel the same as he does. Who knows though, if given the opportunity to just vote myself a pay raise and get paid whether I performed well or not, the temptation might be too much even for me.

    14. guest says:

      America is turning into a place where you have to "know" someone in order to get permits to open a business or obtain credit or pretty soon obtain healthcare.
      Wait until the USA "credit card" is turned off, the Us dollar will collapse. social Security checks will not go out. Public employees and public pension checks will not go out because we cannot borrow another dime! Which means no Police will come when you call, no Garbage will be picked up, no fireman etc.
      Spending like drunken socialists NEVER works. Socialists always run out of other people's money !

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