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InsiderOnline Blog: May 2012

The Regulatory State Is Huge and Growing

“[R]egulatory costs now tower over the estimated 2011 individual income taxes of $956 billion (individual income tax receipts have fallen substantially in the economic downturn). Corporate income taxes, estimated at $198 billion, are dwarfed by regulatory costs (and have declined by half in the downturn). […] [R]egulatory compliance costs exceed the level of pretax corporate profits, which were $1.317 trillion in 2009. (Corporate profits have dropped over the past few years.) For a global perspective, U.S. regulatory costs of $1.752 trillion exceed the output of many major national economies. […] U.S. regulatory costs surpassed the entire 2009 gross national incomes of Mexico and Canada, which stood at $962 trillion and $1.416 trillion, respectively. For the United States, CBO noted 2011 GDP of $14.954 trillion. Total regulatory costs of $1.752 trillion are equivalent to 11.7 percent of that amount. Combining regulatory costs with federal FY 2011 outlays of $3.598 trillion indicates that the federal government’s share of the economy (of GDP) now reaches 35.8 percent. […]

“Adding the $55 billion in administrative costs tabulated by the Weidenbaum Center and Mercatus Center to the $1.752 trillion in the Crains’ estimate for compliance costs brings the total estimated 2010 regulatory burden to around $1.8 trillion.” [Internal citations omitted.] [Clyde Wayne Crews, “Ten Thousand Commandments 2012,” The Competitive Enterprise Institute, May 2012]

Posted on 05/18/12 11:32 AM by Alex Adrianson

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