In 2012—that’s 4 years into Obamanomics—federal regulations cost $2.028T. To comply with the ever-expanding number of rules, the average American company pays ~$10k/employee/year. But, the average manufacturer pays more: $19.56k+/employee/year. For small manufacturers (<50 employees), the costs are even higher: $34.6k+/employee/year.
Federal regulations fall into four major categories. Of 2012’s $2T+ in regulatory costs:
- $1.4T+ were for economic regulations;
- $330B were for environmental regulations; and,
- $159B involved tax compliance.
The remainder covered occupational safety or homeland security regulations.
According to a National Association of Manufacturers (NAM) survey:
- the largest regulatory costs to U.S. manufacturers were labor and environmental; and,
- 88% percent of manufacturers labeled these regulations a challenge for business.
Talk about “putting it” to the nation’s manufacturing sector! No wonder those firms relocate to more tax friendly environs outside of the United States.
What would those manufacturing firms do with the that $2T+ if the feds didn’t confiscate it? According to the NAM survey:
- 63% responded would put the additional dollars toward investment; and,
- 22% would use the funds for employee initiatives.
Additional investment means more jobs and additional funding for employee initiatives means increased salary and benefits.
That’s yet another way Obamanomics hurts the average working stiff.
Let the discussion begin…
To the NAM report, click on the following link:
"The Cost of Federal Regulation to the U.S. Economy, Manufacturing and Small Business."