Federal regulations will add a record $2.1 trillion in costs to the average American by 2023, according to a study released Tuesday by the Competitive Enterprise Institute (CEI).
This huge figure takes into account the impact of federal regulations and compliance costs, amounting to a “hidden tax” of $15,788 per U.S. household, according to CEI's annual “10,000 Commandments.” report The Biden administration has fueled a surge in regulatory costs, implementing 97 rules costing more than $100 million. (Related: Biden Administration has finalized $1 trillion worth of rules and regulations for 2024, analysis finds)
President Joe Biden's new restrictions on small businesses are also contributing to the increase, according to the CEI.
“Over the Biden administration's three years, there have been an average of 870 Federal Register rules per year affecting small businesses, compared with 694 under the Obama administration and 701 under the Trump administration,” wrote study author Clyde Wayne Crews Jr., who studies federal regulations at CEI.
US President Joe Biden (L) speaks on stage next to former US President Barack Obama during a campaign fundraiser at the Peacock Theater in Los Angeles on June 15, 2024. (Mandel Ngan/AFP) (Mandel Ngan/AFP via Getty Images)
Overall, the Biden administration has finalized 3,018 rules in 2023, the second-lowest number since 1976. But the number of Federal Register pages detailing those rules is the second-highest on record, suggesting the regulations may be “broad in scope,” the study said.
The $2.1 trillion regulatory cost (equivalent to 8% of GDP) is also caused by “Biden-era regulations”[ed] “State and local government spending is increasing at rates not seen in more than a decade,” the study found.
Economic regulations make up the largest portion of the annual cost of federal regulations and interventions, costing $522 billion in 2023. Environmental regulations come in a close second, costing $422 billion.
CEI's “Ten Thousand Commandments” also notes the effort that went into creating the regulations.
“The 10.34 billion hours it took Washington to complete federal paperwork in 2022 is the equivalent of 14,883 human lifespans,” Cruz Jr. wrote. Quote Information gathering budget.
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