CNBC highlights Wayne Crews’s calculated cost of federal regulations from his annual Ten Thousand Commandments report.
Last week President Donald Trump signed an executive order requiring that for every new federal regulation that’s adopted, two old ones must be scrapped. This goes a step further than Canada’s One-for-One Rule, implemented in 2012. It managed to save Canadian businesses more than $22 million and 290,000 compliance hours between 2012 and 2014 alone, according to the Government of Canada.
Such a rule has been long overdue in U.S. regulations — or indirect taxation, as I call them — which often stand in the way of growth and create economic friction. The libertarian think tank Competitive Enterprise Institute calculates that the annual cost of regulations amounts to a jaw-dropping $1.9 trillion, a figure that in 2014 exceeded the $1.7 trillion collected in federal income taxes.