Federal Fiscal Follies – So, Just What Do Federal Regulations Cost the US?
Ever wondered just how much Federal regulations cost the US economy? Well, we now have a couple of reasonable estimates of that cost under “Obamacare”.
It ain’t pretty.
The libertarian-leaning Competitive Enterprise Institute estimates the cost will be approximately $1.8 trillion annually when “Obamacare” is fully implemented in 2014. That’s in relatively good agreement with a similar estimate from the Small Business Administration of $1.7 trillion annually.
For comparison, the current US GDP is approximately $15 trillion. It’s currently growing at a rate of less than 2% annually.
Yes, your mental math is correct. That means the cost of complying with governmental regulations in 2014 will consume well over 10% of the value of all goods and services produced in the USA.
Some amount of governmental regulation is necessary. But the cost of compliance with necessary regulations shouldn’t consume anywhere near 10% of the total output of the domestic economy.
No wonder the US economy is in trouble. We’re slowly strangling ourselves with red tape.
Author note: the title of this article was edited to make it apparent that this article was the first in a series. No other changes were made to the article other than adding this note.
Category: Economy
Romney hasn’t worked in over 10 years? Gee, and I thought Romney was the governor of Massachusetts as recently as about 5 or 6 years ago (from 2003-2007).
Who knew that the governor of Massachusetts worked for free?
Sippy: read the comments again, fella. Ex-PH2 asked politely if she’d missed something. I replied to her and pointed out that IMO she appeared to have done exactly that, and pointed out what. That’s hardly “getting a pass”.
Once again, you appear to have opened mouth simply to insert foot.
Actually, Hondo, when he was gov he refused to accept the salary. Still, not being paid hardly counts as not working. Ask stay at home moms if they work, for instance, and all those volunteers who clean up after natural disasters and such.
But sip’s bias (another of them) is showing.
Sip, you evidently are not old enough to appreciate what a free society looks like. We used to have one. It is gone.
Thanks, OWB. I did not know that Romney had refused to accept his salary while serving as governor.
And here I thought all those evil wealthy folks were only concerned with squeezing every last dime possible out of the poor and into their own pockets.
But that makes me wonder, too. As I recall, the current POTUS and his wife are fairly well-off also, and have substantial outside incomes – their household income was $1.7 million in 2011, which was down from 2010’s $5.5 million.
http://www.huffingtonpost.com/2011/04/18/obama-taxes-income_n_850649.html
I wonder if the POTUS is accepting his Federal salary these days?
Let me rephrase that, Hondo. Not sure if he refused it or had it diverted to a charity. Surely one of the crew here is from or near Mass and can clarify that.
In either case: kudos to him. Either way, he effectively served voluntarily.
Romney’s definitely wealthy enough to afford to do that – but so are many politicians in high office. Would be great if more would follow his example and do the same.
Anyone listening over there at 1600 Penn Ave, Washington, DC?
IIRC he deferred his salary.
Now call me crazy, but how did a career politician (Reid) become a multi-millionaire? I have an anonymous source who says that in addition to being a pederast, he likes selling the same piece of property he doesn’t own multiple times and keeping the cash.
Then there’s the story going round that after November, the Obamas have no intention of returning to Chicago, instead heading out to Oahu to a property reported to be worth in the $30-35 million range. Now how’s he coming up with that kind of scratch, hmmmmm?
Having lived in the Commonwealth since 1985, I can assure you that both the “Evil” Mitt Romney and Lt Gov Kerry Healey both agreed to no salary for the duration of their term.
Well… you can’t blame me for forgetting his Governorship… judging by the campaign, it sure seems as if Mitt has.
@52- Yeah, but you didn’t accuse her of lacking reading comprehension or insist that she must read every single post on a thread before she may voice her opinion now did you? If you’d of treated me the same way, politely pointing out post #7 we’d of saved a lot of typing.
The other thing I know about Romney regarding his character is what he did for Bob Gay when Gay’s daughter went missing…he shut down his entire business and brought all his employees to New York to help find the girl.
A guy who served the state for no money and shuts his business down to help a friend…sounds like a guy you might be able to count on when things are not going your way.
Maybe instead of trying to imply Romney kills people because businesses he doesn’t own close and employees lose insurance the Dems could try to stick to the issues, because Obama has never served anyone without a salary, and he never ran a business to shut down when a friend was in need. But let’s not have those pesky facts in the way. Just like the deceitful ads about Romney letting Detroit go bankrupt, instead of just reading the headlines maybe some of the stupid sons of bitches could try reading the whole article…of course that would require the ability to understand the concepts of structured refinancing under bankruptcy protection and the comprehend the potential benefits to what Romney described as the most essential manufacturing element of our nation.
Obama was much smarter right? He just wrote a really big check so GM could continue the way they have which led them to the brink of disaster in the first place…
Re: comment 59: most anyone can learn from past mistakes, insipid. Apparently Romney has done so regarding the advisability of state-mandated health insurance. He’s now stating he’ll work to repeal the AHCA.
Re: comment 60: that’s true, Sippy. But she also didn’t come here immediately making obviously erroneous statements and verbally attacking others, either. She asked politely if she’d missed something. I answered her and advised her what she’d missed.
You could have easily done the same. Instead, you chose to go off half-cocked, then doubled down by continuing the error after it had been pointed out to you; then redoubled the mistake by trying to blame others for your original error.
However, you chose to do the latter. Hence the different treatment.
Act nice, you generally get treated nice. Act like a jackass, you get treated like one. Most 6-year-olds have figured that out.
The idiots who support the poser are much too childish to admit the error of their ways about anything. It’s not about being liberal – it’s about being immature. I have actual leftist friends who are mature enough to understand that even though they still support him on social issues that his inability to keep this country secure is much more important at the moment. They also do not appreciate his apparent cluelessness about the attacks on our embassies and consulates.
The killings of members of the diplomatic corps seems to be hitting the leftists pretty hard. After all, the diplomats are symbolic of all they hold dear – talking about problems and appeasing what others of us would label as enemies.
Not that any of that has much to do with the topic at hand. Just like a typical troll – when you have no actual argument to counter the facts, throw out distractions. Well, except that among some leftists, there remains hope that their maturity will eventually bring them around to the concept that fiscal responsibility is directly tied into our national ability to defend ourselves and our way of life.
A – Who said I don’t read every comment posted? I read everything. Not making a comment on every comment or link does not mean, in any universe or on any planet (at least, the one I live on) that I do not read or observe. It simply means that I don’t have a comment to add to the discussion.
B – I asked Hondo if I had missed something in regards to the comments, not in regard to the article, which I specifically said was quite clearly written.
C – Paying capital gains tax only applies to assets sold at a profit, which is a capital gain. If those assets are not sold, THERE IS NO TAX ON THEM.
If Romney paid 14.1% tax on his income, as he has stated, it’s more than likely his income is derived from DIVIDENDS and INTEREST, but without seeing his tax returns, I can only speculate on that.
D – Just what is wrong with serving food? I know waitresses who have told me they wouldn’t do anything else and they make a good living at it. I have a very good friend who is a janitor, who sometimes does handyman work for me. He’s happy with his job. Hell, I’ve cleaned more horse stalls and cattle barns than I care to count, trimmed hooves, dug potatoes and carrots, and yes, turned a wrench now and then, to fix things that needed to be fixed, including my toilet this morning. I mow my own lawn and weed my own flowers, too.
So just what the hell is wrong with manual labor? Huh? I’d really like to know, because I’ve done plenty of it as has almost everyone else on this board.
It’s called projection. The immature frequently accuse others of doing what they themselves are guilty of doing.
Unlike elitists, many of us are grateful for everyione who labors. I am especially grateful for those who find rewards in whatever they do. You know, because they are just more pleasant to be around than those who constantly find fault with anyone who isn’t just as unhappy as they are. Or jealous of what others have earned.
Exactly. Thank you.
@61- I think you’re the first person I’ve seen who seems to be more for Mitt then against Barack.
Insipid would shit if he knew just how many years I worked hard, by myself, for myself, with no help from the government to get the work, nor to help me with the work. Made a damned good income, and the preponderance of it was in cash wages, private between me and the employer, (many of which were lawyers, doctors n other high wage earners who could afford my quality service. I paid taxes when I worked in the mainstream employment market, sheltered by the dubious OSHA, paying into FICA.
Sippy? ZZZZZZZZZZZZZZZZZZZZ
@69, you are not alone in that respect. I know a lot of people who have bartered services for goods. I can see that growing more in the near future, too.
PH2–I apologize if I seemed to denigrate those in service-level or “lesser” (for lack of a better word) professions.
My ire, however, in that said people who think that ANY job is somehow worthy of a “living wage” (whatever that means), full benefits, etc., simply aren’t grounded in reality.
If someone wants a comfortable living in a decent environment with a good wage, sitting and bitching about it ain’t gonna happen. Entry-level jobs are just that–ENTRY LEVEL. If you’re happy with that, and good at it, good on you, but don’t expect the corner office for being at that job for 25 years. There’s only so many corner offices to go around, so to speak.
But for sippy to come here and tell us we’re “waging war on workers” when most of us have done those “paper hat tasks” (including me) is a crock of horseshit, and I went over the top on him.
For that, I used a bad analogy, and I apologize.
So just what the hell is wrong with manual labor? Huh?
Try finding a kid willing to mow your lawn for $20-30. I’m not sure they even exist anymore.
The statement that FICA tops out at about $100,000 is incorrect.
Schedule X—If your filing status is Single
If your income is $100,000 but not over $174,400, multiply the amount by 28%, subtract $6,383.00 (deductible)
If income is $174,400 but not over $379,150, multiply the amount by 33%, subtract $15,103.00
If income is over $379,150, multiply the amount by 35%, subtract $22,686.00.
If your filing status is single and your income is $379,150 or more, the tax is $110,016.50, plus 35% of the amount over $379,150.00
I don’t think I’ve come across anything more blatantly ignorant than the statement that taxable income tops out at $100,000.
FICA is earned income tax. It is not social security tax, which is based on an income cap of $110,100. Medicare does not have a taxable income cap.
Sparky, I did not take it that way. You need not apologize. I’m as fed up as you are with the balderdash and horse’s ass ignorance that someone-we-both know keeps posting on this forum, the most recent idiotic statement being that FICA has a cap, when you and I both know that FICA is federal income tax, NOT social security tax or medicare tax, all of which are broken down and itemized on anyone’s paycheck stub. So I posted the stuff about how taxes are calculated and what they amount to. So I went to the trouble of posting the tax rates for someone filing taxes as an unmarried/single individual, although I doubt it will have much impact on that maroon. And the amount of a living wage really depends entirely on where you are and the local cost of living, doesn’t it? My brother used to be the HR director for a large multinational corporation before he retired. He hired electronic engineers and components designers, and said that kids would come to see him about entry-level jobs, expecting to start at $40,000 with no education or training. He told me he’d laugh at them and tell them to go to college or get a job at a gas station, because those were their choices. I do know that there are jobs that don’t require a college-level education, and they are going wanting. One of those is driving a big rig, which requires a commercial driver’s license, and the local 2-year college offers a four-month class that qualifies the student for OTR trucking and the CDL class license. Jobs for train engineers are also open, but they require a certain amount of knowledge abut diesel engines, if I’m not mistaken. Besides, who wants the corner office? I was quite happy in accounting, because it paid the bills, put food on the table, gave me time off when I wanted it, and I didn’t have to take it home with me at night, and in the evenings and on weekends, I went home and did whatever it was I did for… Read more »
Actually, Ex-PH2 – the OADSI portion of FICA taxes does in fact stop at $110,100 in earnings this year.
FICA is the acronym for taxes are collectively known as as Social Security taxes. The Old Age/Disability portion – OASDI – of these Social Security taxes stops when one earns the Social Security wage base – which this year is $110,100. Earned income above that amount is not subject to OASDI taxes. That’s because Social Security has a fixed maximum benefit, regardless of lifetime average earnings.
Medicare taxes used to stop at the Wage Base as well, but since they no longer do. In 1993, the law was changed so that all earned income is now subject to Medicare taxes.
Federal income taxes are a different set of taxes entirely. You are correct in stating above that Federal income taxes don’t have an upper income limit.