From the Bureaucracy, With Love: Disguised Costs from Federal Agencies
In 1957, Ian Fleming published From Russia, With Love, the fifth book in his series about the suave MI6 agent, James Bond. In the novel, the Soviet Union’s intelligence agency, led by Colonel Rosa Klebb, sends assassins to disguise themselves as Bond’s allies until Klebb herself leaves Bond’s life hanging by a thread with her poisoned blade. Like Colonel Klebb, the Obama Administration issues regulations under the guise of protecting Americans against some perceived danger, while in reality, they are toxic weapons used to rob taxpayers of wealth and freedom.
According the Competitive Enterprise Institute’s (CEI) report, “Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State,” which was released on May 16, 2016, the cost of federal regulations reached $1.8 trillion in 2015, costing each household an average of $15,000. These regulations are “hidden taxes” imposed by the federal bureaucracy. In 2015, 2,353 new rules were issued by the Obama Administration; 81 were “major rules,” meaning they had an economic impact of $100 million or more. According to an April 26, 2016 Mercatus Center paper, economic growth has been slowed by 0.8 percent since 1980 due to regulations. If the regulation levels had remained at the same levels as in 1980, the economy would be 25 percent larger than it was in 2012.
While the subject matter of these rules vary, the most (in cost and amount) come from the Environmental Protection Agency (EPA), which issued nine of the 81 major rules in 2015 at an annual cost of $11.1 billion.
The Clean Power Plan, a 304-page rule costing $7.2 billion annually, was a concerted attempt by EPA and the administration to continue the crusade against global warming. The regulation, currently facing a court challenge by 27 states, sought to place state-specific restrictions on greenhouse gas emissions and without consideration of the total or proportional amount of emissions in each state. If the rule prevails, the cost of energy is expected to rise and increase the cost of electricity and the manufacture of goods – all to cut emissions by 0.01 percent annually.
Another EPA regulation, in conjunction with the United States Army Corps of Engineers (USACE), is the waters of the United States (WOTUS) rule. It garnered significant media attention when it was challenged in the Supreme Court (and partially defeated). The regulation forces property owners into a lengthy and expensive permitting process, or costly fines are levied each day the property is used without permits if deemed to be “waters of the United States.” The rule expands a vague authority from the Clean Water Act and allows the EPA and the USACE to regulate even more waters (such as ponds, swamps, and wetlands that are not necessarily “navigable”) that are privately-owned. The Supreme Court ruled that property owners can now challenge this expansion of power over their land, which opens the door to further cases challenging the rule.
While the EPA has issued the most major rules in 2015, the Securities and Exchange Commission have issued the most regulations since President Obama took office in 2009. Most of them are related to enforcement of the Dodd-Frank law. These numerous regulations includes changing the data collection requirements for mortgage lenders (later strengthened by the Consumer Financial Protection Bureau) and the Pay Ratio Disclosure rule. While these regulations were imposed on the pretext of reforming Wall Street, they have been extremely detrimental to Main Street, decreasing consumer choice and increasing costs at small banks.
As in the final chapter of From Russia, With Love, taxpayers are presented with a cliffhanger. With President Obama in the final year of his presidency, thousands of new rules (including major rules) are being considered at federal agencies. Colonel Klebb was able to poison James Bond with her concealed blade, leaving readers wondering if Bond would survive. Whether the taxpayers are left for dead or given a reprieve, like Bond in Ian Fleming’s next installment (Dr. No), only the President knows.
