Boehner to Obama: Come clean on cost of new regulations

The only question I have about this is: What took so long?

From a letter Speaker John Boehner sent today to President Obama:

This year the Administration’s current regulatory agenda identifies 219 planned new regulations that have estimated annual costs in excess of $100 million each. That’s almost a 15 percent increase over last year [when there were 191 such regulations], and appears to contradict public suggestions by the Administration this week that the regulatory burden on American job creators is being scaled back. …

I was startled to learn that the EPA estimates that at least one of its proposed rules will cost our economy as much as $90 billion per year. The Administration has not disclosed how many of the other 218 planned rules will cost more than $1 billion, nor identified these rules. This information is of great relevance to the American people, who face so much uncertainty about these new regulatory costs, and to the Congress, where we continue to aim to work with you in relieving unnecessary burdens and helping employers move forward to create jobs.

I am again asking that your Administration provide a list of all pending and planned rulemakings with a projected impact on our economy in excess of $1 billion.

A reporting threshold of only $100 million is far too low. If we only know that each of the 219 new rules would cost at least that amount, we can only say that the aggregate cost is at least $21.9 billion. That’s bad enough — but as Boehner’s letter notes, one of the 219 on its own is projected to cost at least $90 billion. So, the total cost is really at least $111.8 billion, and probably much, much more.

The public ought to know exactly how much more.

Obama can propose all the new stimulus he wants, but any effects will be severely dampened by the $111.8 billion-plus his agencies are taking back out of the economy at the same time. And not even hard-core Keynesians claim there’s a multiplier effect for regulatory costs. This is the bureaucratic version of Bastiat’s broken window fallacy.

A better, no-cost stimulus would be, as I pointed out last week, to put a freeze on these costly new rules.

– By Kyle Wingfield

Find me on Facebook or follow me on Twitter

209 comments Add your comment

Dacula 1995

August 26th, 2011
11:24 am

Obama….Come clean??? Yeah right!

Tiberius

August 26th, 2011
11:37 am

“The only question I have about this is: What took so long?”

TESTIFY! :D

Lower taxes have been tried. Partial success at best.

Deficit spending has been tried. Dismal short-term success and disastrous long-term failure.

The ONLY things left to address that are holding back business are uncertainty and regulations. A recent study showed that the cost to businesses by regulations exceeds that of income tax burden. It HAS to be addressed.

The uncertainty can be fixed in November of 2012. ;)

carlosgvv

August 26th, 2011
11:39 am

Boehner’s letter needs to be translated. It is actually saying “We in the Republican Party are completley dependent of Big Business for our election and re-election funding. Therefore, they require us to fight as hard as possible to get rid of any and all Government regulations so that they can have a 100% laissez faire business environment and can then scam the public for all they are worth”.

Dacula 1995

August 26th, 2011
11:41 am

Carlos….yeah kind of like Obama has scammed us for the last two years. Garbage!

Tiberius

August 26th, 2011
11:45 am

Carlos, grow up!

NOBODY wants to “get rid of any and all Government regulations”.

NOBODY.

I suggest you think of this government as a pendulum swinging back and forth. Right now, the pendulum is at it’s highest point in regards to regulatory oppression, and it’s being held there by the government and not allowed to swing back to the middle.

But as a big government kind of guy, I’m sure you simply love all regulations, regardless of their effectiveness (or lack thereof).

Jefferson

August 26th, 2011
11:48 am

A man with a breifcase will steal more money than a man with a gun.

quick work break

August 26th, 2011
11:49 am

When you mentioned “Broken Window Fallacy”, I thought you were referencing the “Broken Window Theory”, which would contradict your intent. Applying the Broken Window Theory to regulation would imply that having correct regulations (keeping things “clean”) will prevent a higher number of problems, as opposed to lax regulations (the “broken glass”) which would only encourage more bad behavior and hurt everyone.

Dacula 1995

August 26th, 2011
11:53 am

Jefferson….I dont know man. A gun scares me a little more than a breifcase….

Dacula 1995

August 26th, 2011
11:53 am

Jefferson….however you are right Obama is attempting to steal ALOT of money from most americans!

Tiberius

August 26th, 2011
11:54 am

“A man with a breifcase will steal more money than a man with a gun.”

Especially in the name of a compassionate government.

dylandawg

August 26th, 2011
11:55 am

well Tiberius, Bachmann wants to shut out the lights on the EPA……….can’t say I disagree…nothing bad ever happened to the land, water, air or people before the EPA…….business will always do the right thing when they regulate themselves……can’t think of any past events that would refudiate that fact

BuyMadeinUSjobs

August 26th, 2011
11:56 am

Republicans, how many trillions have been spent because we do not have strong regulations and regulators to enforce them. Think savings and loans and financial/wall street bailouts. What about costs to clean up love canal and many radiation sites(look at what many of the dollars are paying for at EPA and Energy. The poorly written unfair trade agreements have cost millions of U. S. workers jobs..

Citizen of the World

August 26th, 2011
12:03 pm

One persistent myth is that the cost of regulation is always passed on to the consumer. That’s not always the case. Say a company has to adhere to a new regulation that protects the environment. Compliance would up the cost of the widget — but maybe the consumer says, whoa, I’m not paying that for a widget! So at that point, maybe the CEO says, you know, instead of making $6 million a year, maybe I should only make $5 million and charge less for my widget so people will still buy it.

Regulation is not what kills jobs. It’s often the greed of people at the top who, recognizing there’s a consumer price point to protect, take their manufacturing overseas where they can trash the environment and take advantage of cheap labor, continue to offer a cheap product, and pocket their huge executive salaries.

For small business owners who can’t take their business overseas, as long as regulation is applied and enforced equally, it shouldn’t hurt their competitive advantage and should protect them from unscrupulous suppliers and competitors.

The Republicans want to make regulation the boogieman du jour. They are exploiting the issue for votes. If you look at the history of regulation, the cry for it came from businesses as much as from consumers.

Dacula 1995

August 26th, 2011
12:05 pm

Exploiting the issues for votes???HAHAHAH

The biggest fraud in politics is how the Demoncrats exploit blacks and mexicans in an effort to get votes….nice try.

carlosgvv

August 26th, 2011
12:08 pm

Tiberius

Once upon a time in America there were 6 day work weeks, 12 hour work days, no paid vacations, no overtime, no insurance, no paid holidays and child labor. Doctors and Dentists did not have to be licensed and patent medicines abounded. Then the Unions and Government regulations kicked in and forced Business and Medicine to accept regulation. Business in particular did not go quietly. They fought a 5 day work week, 8 hour day, paid vacations, paid holidays, and child labor elemination every step of the way. Since every fairly decent High School graduate knows this, I can only conclude you are either a little kid who should not be posting here or someone who is just not very bright.

Dusty

August 26th, 2011
12:10 pm

Go for it, Kyle. $111.8. the cost for new regulations when we aint got the money!!! Would someone please whisper in the presiden’st ear that important fact: We do not have the money, honey!

Dusty

August 26th, 2011
12:11 pm

That’s billions we are talking about, folks!!

ByteMe

August 26th, 2011
12:12 pm

I was startled to learn that the EPA estimates that at least one of its proposed rules will cost our economy as much as $90 billion per year.

And that’s the money sentence. How a regulation “costs our economy” as though the money didn’t change hands from business to business — for compliance costs — thereby actually increasing our GDP. Every regulation can either be thought of as costing jobs or creating new jobs, you just have to think outside the box of protecting the status quo. Boehner can’t, he’s too beholding to the status quo as long as it gets him re-elected.

Tiberius

August 26th, 2011
12:16 pm

“Think savings and loans and financial/wall street bailouts.”

And why did we bail out these neer-do well’s in the first place?

If you keep bailing out the miscreants when will they ever learn their lesson?

Tiberius

August 26th, 2011
12:21 pm

Citizen of the World, you can’t have it both ways, (even if your point can’t be made unless you do).

First you say that regulatory costs aren’t always passed onto the consumer, because those wonderful big companies are so concerned about the little guy that they will sacrifice profits.

And on the other hand you rail against big business for being greedy.

Nope. Not buying it one bit. You can’t have it both ways.

Citizen of the World

August 26th, 2011
12:24 pm

Dacula 1995 — do tell: How do Democrats exploit blacks and mexican [sic] to get votes?

Tiberius

August 26th, 2011
12:26 pm

“Since every fairly decent High School graduate knows this, I can only conclude you are either a little kid who should not be posting here or someone who is just not very bright.”

Carlos, I suggest you need to stay over at the Children’s Table, i.e. the Bookman Blog if you want to use the personal attack argument instead of facts.

Now, once upon a time we still made buggy whips in America, but someone finally realized that buggy whips were no longer useful. When your cost of regulation is now higher than your tax burden, we’ve gone way, way, way too far.

Citizen of the World

August 26th, 2011
12:27 pm

Tiberius, try to think beyond a dichotomy.

Dacula 1995

August 26th, 2011
12:27 pm

Citizen….you really have to ask that question?

Jimmy62

August 26th, 2011
12:27 pm

CarlosGV: Love how you ignore the fact that Obama is as much or more beholden to big business than the GOP. See GE, Goldman Sachs, etc. An see how he’s giving out waivers to Obamacare to the big businesses that give him money. See how he made sure his buddies at Goldman Sachs got bailed out even though they were as much or more responsible than any other single group of people for the housing mess.

Tiberius

August 26th, 2011
12:29 pm

“well Tiberius, Bachmann wants to shut out the lights on the EPA”

An if you don’t understand the difference between campaign rhetoric and public policy, dlyandawg, I suggest you stay home when election day comes around.

Dacula 1995

August 26th, 2011
12:29 pm

Jimmy62…..Really??? I thought the fools who didnt make their house payments were responsible for the housing mess…..

Tiberius

August 26th, 2011
12:31 pm

“Tiberius, try to think beyond a dichotomy.”

I do. I suggest you try to think like a business person who is trying to make money and employ people that can help them do so.

Citizen of the World

August 26th, 2011
12:31 pm

Dacula 1995 — yes, I do, because I’m really interested in how you would answer it.

Dacula 1995

August 26th, 2011
12:34 pm

Citizens…..the fact is that the Republican party historically has done more to help AA’s. However demoncrats continue to preach Amnesty, Medicare and other entitlement programs. This keeps the black society leaching onto the Demoncratic party.

Whenever the Repubs mention that we may have to cut some of these entitlement programs, blacks always scream that it is “racist”. Such a tired arguement.

Tiberius

August 26th, 2011
12:38 pm

Dacula, I’m not following your 12:34 argument one bit. I can buy into a general argument that the Democrat party panders to – well – everyone they think they can get a vote from, and that does include policies that target minorities specifically, but I don’t see the argument that Republicans have done more to help African Americans one bit.

Nor should they specifically target anyone with preference, but rather treat everyone equally.

Dacula 1995

August 26th, 2011
12:41 pm

Tiberius….I would suggest you research the republican party and slavery……it has continued on throughout history.

Citizen of the World

August 26th, 2011
12:43 pm

So Dacula 1995, do tell: How has the Republican party historically done more to help AAs?

Dacula 1995

August 26th, 2011
12:45 pm

Citizen…..wow you guys should have really paid attention in middle school! Look it up.

Phil's Tel-A-Gramm

August 26th, 2011
12:49 pm

Kyle,

I know of no individual that would dare to deprive you of your right to drink all the polluted water or breath all the polluted air or eat all the tainted food that your overtaxed heart desires. Have at it.

Citizen of the World

August 26th, 2011
12:50 pm

Dacula 1995 — you should be paying attention now, instead of being caught up in the closed information loop that is Fox “News” and right wing talk radio.

Dacula 1995

August 26th, 2011
12:51 pm

Citizen? Who said a word about Fox news?

Lil' Barry Bailout (Revised Downward)

August 26th, 2011
12:52 pm

ByteMe
August 26th, 2011
12:12 pm
—————

Only a mind-numbed libtard could be so intellectually weak as to believe we can regulate our way out of Obozo’s new normal of 9% unemployment.

Citizen of the World

August 26th, 2011
12:54 pm

Dacula, I can read between the lines.

Dacula 1995

August 26th, 2011
12:54 pm

Citizen….you sure assume a lot! I figured.

Tiberius

August 26th, 2011
12:55 pm

Dacula, please.

If all you have to hang your hat on is the Emancipation Proclamation made by a specific President in the 1860’s (and not the policy of the GOP at the time, btw), then you’re gonna have to do better than that.

Dacula 1995

August 26th, 2011
12:56 pm

Tiberius….what “policies of this time” are you referring to?

Tiberius

August 26th, 2011
12:57 pm

Phil, I find that people who rely on hyperbole to make their argument do so because they can’t come up with a valid argument against a valid point.

Citizen of the World

August 26th, 2011
12:58 pm

But do I assume correctly, Dacula?

Dacula 1995

August 26th, 2011
1:00 pm

Citizen…sure I watch Fox as well as CNN, MSNBC and CNBC. Your point?

Tiberius

August 26th, 2011
1:01 pm

I’m saying that emancipation was not popular with the GOP at the time of the Late Misunderstanding, Dacula. It was a political move calculated by The Great Federalist (Lincoln) to bring a quicker end to the war.

Dacula 1995

August 26th, 2011
1:02 pm

Tiberius…..every political move is calculated! Welcome to politics.

Citizen of the World

August 26th, 2011
1:04 pm

Dacula, that’s what they all say.

Dacula 1995

August 26th, 2011
1:04 pm

Citizen….who is “they”?

Tiberius

August 26th, 2011
1:06 pm

Dacula, I would suggest I know a bit more about politics than you might ever know, so don’t try to be condescending to me about same.

If you don’t think the North cared little more about the plight of the black man in 1865 than the South did, then you don’t really know your history.