Ryan Streeter
No sooner had I cited him in this Republican post this morning than Scott Shane had this excellent American article on the regulatory burden of the federal government on businesses.
Especially troubling in the data is the size and scope of the burden small businesses face.
Here are the main points worth memorizing:
- Adhering to federal regulations alone cost $1.75 trillion in 2008, more than $15,000 per household.
- Business pays 55 percent of these costs.
- The per-employee cost of compliance with tax laws is $1,584 for businesses with 19 or fewer workers, but only $517 per worker for companies with 500-plus workers.
- For compliance with environmental regulations, the difference is a massive $4,101 for businesses with 19 or fewer workers and $883 per worker for companies with 500-plus workers.
- In 1986, the members of the National Federation of Independent Businesses reported that “unreasonable governmental regulations” was only the 22nd most important problem small business owners faced. In 2008, they said it was sixth.
- Much of the regulatory burden is coming not from the bureaucracy but directly from Congress in the form of laws like the healthcare and financial reform legislation.
- This means that President Obama's recent overtures to regulatory reform and a commitment to tackle bureaucratic regulatory burdens, while helpful, will have limited effect if the laws aren't changed.
And finally, this chart to put small business costs in perspective:
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