The SBA just released a new study entitled, “The Impact of Regulatory Costs on Small Firms”, which suggests federal regulations cost Americans $1.7 trillion in 2008.
The report shows that small businesses, which are the life blood of the U.S. economy, bears the brunt of the federal regulatory burden.
John Stossel recently reported on his cable news show that the federal government added 60,000 new pages of regulations, last year alone.
The annual cost of federal regulations in the United States increased to more than $1.75 trillion in 2008. Had every U.S. household paid an equal share of the federal regulatory burden, each would have owed $15,586 in 2008. By comparison, the federal regulatory burden exceeds by 50 percent private spending on health care, which equaled $10,500 per household in 2008. While all citizens and businesses pay some portion of these costs, the distribution of the burden of regulations is quite uneven. The portion of regulatory costs that falls initially on businesses was $8,086 per employee in 2008. Small businesses, defined as firms employing fewer than 20 employees, bear the largest burden of federal regulations.
Critics suggest onerous new regulations enacted by the Obama administration will lead to even more of a burden on small and large businesses, as well as everyday Americans. Whiles everyone agrees that some regulations are needed, small government advocates and Tea Party groups claim over regulation leads to a loss of jobs and is a major drag on economic growth. They say this new report bolsters their argument.